{"product_id":"a-wealth-of-common-sense-isbn-9781119024927","title":"A Wealth of Common Sense","description":"\u003cb\u003eA simple guide to a smarter strategy for the individual investor\u003c\/b\u003e  \u003cp\u003e\u003ci\u003eA Wealth of Common Sense\u003c\/i\u003e sheds a refreshing light on investing, and shows you how a simplicity-based framework can lead to better investment decisions. The financial market is a complex system, but that doesn't mean it requires a complex strategy; in fact, this false premise is the driving force behind many investors' market \"mistakes.\" Information is important, but understanding and perspective are the keys to better decision-making. This book describes the proper way to view the markets and your portfolio, and show you the simple strategies that make investing more profitable, less confusing, and less time-consuming. Without the burden of short-term performance benchmarks, individual investors have the advantage of focusing on the long view, and the freedom to construct the kind of portfolio that will serve their investment goals best. This book proves how complex strategies essentially waste these advantages, and provides an alternative game plan for those ready to simplify.\u003c\/p\u003e \u003cp\u003eComplexity is often used as a mechanism for talking investors into unnecessary purchases, when all most need is a deeper understanding of conventional options. This book explains which issues you actually should pay attention to, and which ones are simply used for an illusion of intelligence and control.\u003c\/p\u003e \u003cul\u003e \u003cli\u003eKeep up with—or beat—professional money managers\u003c\/li\u003e \u003cli\u003eExploit stock market volatility to your utmost advantage\u003c\/li\u003e \u003cli\u003eLearn where advisors and consultants fit into smart strategy\u003c\/li\u003e \u003cli\u003eBuild a portfolio that makes sense for your particular situation\u003c\/li\u003e \u003c\/ul\u003e \u003cp\u003eYou don't have to outsmart the market if you can simply outperform it. Cut through the confusion and noise and focus on what actually matters. \u003ci\u003eA Wealth of Common Sense\u003c\/i\u003e clears the air, and gives you the insight you need to become a smarter, more successful investor.\u003c\/p\u003e Introduction: Why Simplicity Is the New Sophistication xi \u003cp\u003e\u003cb\u003eChapter 1 The Individual Investor versus the Institutional Investor 1\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eInstitutional versus Individual Investors 5\u003c\/p\u003e \u003cp\u003eWe’re All Human 9\u003c\/p\u003e \u003cp\u003eExtra Zeroes 12\u003c\/p\u003e \u003cp\u003eLong-Term Thinking 13\u003c\/p\u003e \u003cp\u003eKey Takeaways from Chapter 1 16\u003c\/p\u003e \u003cp\u003eNotes 16\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 2 Negative Knowledge and the Traits Required to Be a Successful Investor 19\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eThe Biggest Problem of All 25\u003c\/p\u003e \u003cp\u003eTraits of a Successful Investor 27\u003c\/p\u003e \u003cp\u003eStanding on the Shoulders of Giants 33\u003c\/p\u003e \u003cp\u003eKey Takeaways from Chapter 2 38\u003c\/p\u003e \u003cp\u003eNotes 38\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 3 Defining Market and Portfolio Risk 41\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eVolatility: Risk or Opportunity? 48\u003c\/p\u003e \u003cp\u003eUnderstanding Rule Number 1 of Investing 49\u003c\/p\u003e \u003cp\u003eThe Risk Tolerance Questionnaire 50\u003c\/p\u003e \u003cp\u003eRisk versus Uncertainty 52\u003c\/p\u003e \u003cp\u003eRisk Aversion 54\u003c\/p\u003e \u003cp\u003eThe Cycle of Fear and Greed 58\u003c\/p\u003e \u003cp\u003eKey Takeaways from Chapter 3 60\u003c\/p\u003e \u003cp\u003eNotes 60\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 4 Market Myths and Market History 63\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eMyth 1: You Have to Time the Market to Earn Respectable Returns 66\u003c\/p\u003e \u003cp\u003eMyth 2: You Have to Wait until Things Get Better Before You Invest 67\u003c\/p\u003e \u003cp\u003eMyth 3: If Only You Can Time the Next Recession, You Can Time the Stock Market 68\u003c\/p\u003e \u003cp\u003eMyth 4: There’s a Precise Pattern in Historical Market Cycles 70\u003c\/p\u003e \u003cp\u003eMyth 5: Stocks and Bonds Always Move in Different Directions 71\u003c\/p\u003e \u003cp\u003eMyth 6: You Need to Use Fancy Black Swan Hedges in a Time of Crisis 73\u003c\/p\u003e \u003cp\u003eMyth 7: Stocks Are Riskier Than Bonds 74\u003c\/p\u003e \u003cp\u003eMyth 7a: Bonds Are Riskier Than Stocks 75\u003c\/p\u003e \u003cp\u003eMyth 8: The 2000s Were a Lost Decade for the Stock Market 76\u003c\/p\u003e \u003cp\u003eMyth 9: New All-Time Highs in the Stock Market Mean It’s Going to Crash 77\u003c\/p\u003e \u003cp\u003eMyth 10: A Yield on an Investment Makes It Safer 78\u003c\/p\u003e \u003cp\u003eMyth 11: Commodities Are a Good Long-Term Investment 80\u003c\/p\u003e \u003cp\u003eMyth 12: Housing Is a Good Long-Term Investment 81\u003c\/p\u003e \u003cp\u003eMyth 13: Investing in the Stock Market Is Like Gambling at a Casino 82\u003c\/p\u003e \u003cp\u003eKey Takeaways from Chapter 4 84\u003c\/p\u003e \u003cp\u003eNotes 85\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 5 Defining Your Investment Philosophy 87\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eDegrees of Active and Passive Management 90\u003c\/p\u003e \u003cp\u003eThe Benefits of Doing Nothing 94\u003c\/p\u003e \u003cp\u003eExercising Your Willpower 96\u003c\/p\u003e \u003cp\u003eSimplicity Leads to Purity 98\u003c\/p\u003e \u003cp\u003eDefining Yourself as an Investor 99\u003c\/p\u003e \u003cp\u003eKey Takeaways from Chapter 5 100\u003c\/p\u003e \u003cp\u003eNotes 101\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 6 Behavior on Wall Street 103\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eThreading the Needle 107\u003c\/p\u003e \u003cp\u003eSo Never Invest in Active Funds? 112\u003c\/p\u003e \u003cp\u003eThe Most Important Thing 114\u003c\/p\u003e \u003cp\u003eKey Takeaways from Chapter 6 115\u003c\/p\u003e \u003cp\u003eNotes 116\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 7 Asset Allocation 119\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eAsset Allocation Decisions 121\u003c\/p\u003e \u003cp\u003eWhy Diversification Matters 123\u003c\/p\u003e \u003cp\u003eMean Reversion and Rebalancing 131\u003c\/p\u003e \u003cp\u003eRisk Factors, Value Investing, and the Power of Patience 135\u003c\/p\u003e \u003cp\u003eThe Value Premium 136\u003c\/p\u003e \u003cp\u003eThe Rise of Smart Beta 138\u003c\/p\u003e \u003cp\u003eHow to See It Through 143\u003c\/p\u003e \u003cp\u003eKey Takeaways from Chapter 7 146\u003c\/p\u003e \u003cp\u003eNotes 147\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 8 A Comprehensive Investment Plan 149\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eWhy Do You Need a Plan? 150\u003c\/p\u003e \u003cp\u003eThe Investment Policy Statement (IPS) 152\u003c\/p\u003e \u003cp\u003eLifecycle Investing 154\u003c\/p\u003e \u003cp\u003eBeating the Market 158\u003c\/p\u003e \u003cp\u003eSaving Money 159\u003c\/p\u003e \u003cp\u003eTaxes and Asset Location 160\u003c\/p\u003e \u003cp\u003eKey Takeaways from Chapter 8 161\u003c\/p\u003e \u003cp\u003eNotes 161\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 9 Financial Professionals 163\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eVetting Your Sources of Financial Advice 166\u003c\/p\u003e \u003cp\u003eOutsourcing to a Financial Professional 168\u003c\/p\u003e \u003cp\u003eWhat a Financial Advisor Can Do for You 171\u003c\/p\u003e \u003cp\u003eHow to Be a Good Client 174\u003c\/p\u003e \u003cp\u003eBenchmarking and Ongoing Maintenance 176\u003c\/p\u003e \u003cp\u003eAlternatives 177\u003c\/p\u003e \u003cp\u003eKey Takeaways from Chapter 9 178\u003c\/p\u003e \u003cp\u003eNotes 178\u003c\/p\u003e \u003cp\u003eConclusion 179\u003c\/p\u003e \u003cp\u003eBook List 186\u003c\/p\u003e \u003cp\u003eNotes 187\u003c\/p\u003e \u003cp\u003eAbout the Author 189\u003c\/p\u003e \u003cp\u003eIndex 191\u003c\/p\u003e   \u003cp\u003e\u003cb\u003eBEN CARLSON, CFA,\u003c\/b\u003e has spent his career managing institutional portfolios for endowments, foundations, and pension plans. He is also the creator and author of the blog \u003ci\u003eA Wealth of Common Sense\u003c\/i\u003e (awealthofcommonsense.com) and is a Yahoo! Finance Contributor.     \u003c\/p\u003e\u003cp\u003eMuch of the financial advice available these days is so fraught with unnecessary complexity and industry jargon that many investors are either too confused or too intimidated to make wise investment decisions. So how can you approach your own portfolio and the financial markets more confidently? Financial specialist Ben Carlson shows you how. In \u003ci\u003eA Wealth of Common Sense: Why Simplicity Trumps Complexity in Any Investment Plan\u003c\/i\u003e, Carlson explores those issues you should pay attention to, as opposed to those that are used as an illusion of intelligence and control.  \u003c\/p\u003e\u003cp\u003eDrawing from his career in portfolio management during which he worked with complex and sophisticated portfolio strategies, Carlson reveals the secret of using basic common sense as you invest in the financial markets, effortlessly bridging the gap between sophistication and simplicity. \u003ci\u003eA Wealth of Common Sense\u003c\/i\u003e helps all investors make more informed decisions using sound thinking as a guiding framework to help alleviate some of the lasting damage from the market crash.  \u003c\/p\u003e\u003cp\u003eThis practical guide discusses: \u003c\/p\u003e\u003cul\u003e \u003cli\u003eWhy long-term thinking trumps short-term gains\u003c\/li\u003e \u003cli\u003eHow to identify market and portfolio risk\u003c\/li\u003e \u003cli\u003eWhich market myths are true and which you can ignore\u003c\/li\u003e \u003cli\u003eHow to define yourself as an investor\u003c\/li\u003e \u003cli\u003eWhy diversification matters\u003c\/li\u003e \u003cli\u003eHow to build self-awareness in your own investing abilities\u003c\/li\u003e \u003c\/ul\u003e  \u003cp\u003eThere is an assumption that complex systems such as financial markets must require complex investment strategies and organizations to succeed. This is a false premise that far too many both inside and outside of the industry have come to believe. You can adapt to the changing market and economic landscape. Filled with practical advice and in-depth insights, \u003ci\u003eA Wealth of Common Sense\u003c\/i\u003e shows you how with basic, sensible guidance for improving long-term investment results and making rational decisions in all market conditions.     \u003c\/p\u003e\u003cp\u003ePRAISE FOR \u003cbr\u003e\u003cb\u003eA WEALTH OF COMMON SENSE\u003c\/b\u003e  \u003c\/p\u003e\u003cp\u003e\"The content of this book lives up to the title. Ben Carlson has mastered the art of exposing the few big topics that matter most to investors, leaving out the complicated—but often unnecessary—topics found in other investment books. Any investor, from a beginner to a professional, can learn a tremendous amount from \u003ci\u003eA Wealth of Common Sense\u003c\/i\u003e.\" \u003cbr\u003e\u003cb\u003e—Morgan Housel,\u003c\/b\u003e columnist for \u003ci\u003eThe Motley Fool\u003c\/i\u003e and the \u003ci\u003eWall Street Journal\u003c\/i\u003e  \u003c\/p\u003e\u003cp\u003e\"Through hard work Ben Carlson has rapidly established himself as one of the nation's premier investment bloggers. In his new book, \u003ci\u003eA Wealth of Common Sense\u003c\/i\u003e, Carlson cements his position as a prudent and practical voice for the individual investor.\"\u003cbr\u003e \u003cb\u003e—Tadas Viskanta,\u003c\/b\u003e founder and editor of \u003ci\u003eAbnormal Returns\u003c\/i\u003e and author of \u003ci\u003eAbnormal Returns: Winning Strategies from the Frontlines of the Investment Blogosphere\u003c\/i\u003e  \u003c\/p\u003e\u003cp\u003e\"Ben Carlson seemingly came out of nowhere and took the financial commentariat by storm with his straightforward, insightful blog posts. True investing wisdom—born out of experience and success—cannot be faked; it must be earned. This is precisely the type of wisdom that comes oozing out of every chapter in \u003ci\u003eA Wealth Of Common Sense\u003c\/i\u003e.\"\u003cbr\u003e \u003cb\u003e—Downtown Josh Brown,\u003c\/b\u003e author of the bestselling book \u003ci\u003eBackstage Wall Street\u003c\/i\u003e and \u003ci\u003eThe Reformed Broker\u003c\/i\u003e blog, star of CNBC's \u003ci\u003eThe Halftime Report,\u003c\/i\u003e  \u003c\/p\u003e\u003cp\u003e\u003cb\u003eYOUR NO-NONSENSE GUIDE TO COMMON SENSE INVESTING\u003c\/b\u003e \u003c\/p\u003e\u003cp\u003eCut through the confusion and noise and focus on what actually matters. \u003ci\u003eA Wealth of Common Sense\u003c\/i\u003e clears the air and gives you the insight you need to become a smarter, more successful investor.  \u003c\/p\u003e\u003cp\u003eComplexity is often used as a mechanism for talking investors into unnecessary purchases, when all most need is a deeper understanding of conventional options. This book explains which issues are important—and which are not.  \u003c\/p\u003e\u003cp\u003eTake a look inside for guidance on how to: \u003c\/p\u003e\u003cul\u003e \u003cli\u003eKeep up with—or beat—professional money managers\u003c\/li\u003e \u003cli\u003eExploit stock market volatility to your utmost advantage\u003c\/li\u003e \u003cli\u003eLearn where advisors and consultants fit into a smart strategy\u003c\/li\u003e \u003cli\u003eBuild a portfolio that makes sense for your particular situation\u003c\/li\u003e \u003c\/ul\u003e","brand":"Bloomberg Press","offers":[{"title":"Default Title","offer_id":47988647657701,"sku":"NP9781119024927","price":42.0,"currency_code":"USD","in_stock":false}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/1842\/7735\/files\/9781119024927.jpg?v=1761781106","url":"https:\/\/k12savings.com\/es\/products\/a-wealth-of-common-sense-isbn-9781119024927","provider":"K12savings","version":"1.0","type":"link"}