The Future for Investors: Why the Tried and the True Triumph Over the Bold and the New

The Future for Investors reveals new strategies that take advantage of the dramatic changes and opportunities that will appear in world markets. Jeremy Siegel, one of the world’s top investing experts, has taken a long, hard, and in-depth look at the market and the stocks that investors should acquire to build long-term wealth. His surprising finding is that the new technologies, expanding industries, and fast-growing countries that stockholders relentlessly seek in the market often lead to poor returns. In fact, growth itself can be an investment trap, luring investors into overpriced stocks and overly competitive industries.

Author’s Note:

My first book, Stocks for the Long Run, was published in 1994 when the U.S. market was midway through its longest and strongest bull market in history. My research showed that over extended periods of time, stock returns not only dominate the returns on fixed-income assets, but they do so with lower risk when inflation is taken into account. These findings established that stocks should be the cornerstone of all long-term investors’ portfolios.

The book’s popularity led to many speaking engagements before audiences of individual and professional investors. After my presentations, two questions invariably came up: “Which stocks should I hold for the long run?” and “What will happen to my portfolio when the baby boomers retire and begin liquidating their portfolios?” I wrote The Future for Investors to answer these questions.

All these studies had a great impact on my approach to investing. I am often asked whether the bubble and subsequent collapse in the equity market over the past few years have caused me to shift my view of stocks. The answer is yes, it has, but in such a way that makes me just as optimistic about the future for investors. Irrational fluctuations in the market, instead of being a source of alarm, give investors the opportunity to do even better than the buy-and-hold returns available on indexed securities. And world economic growth will open new opportunities and new markets to globally oriented firms on an unprecedented scale.

I believe that to take full advantage of these developments, investors must expand the scope of their portfolios and avoid the common pitfalls that cause the returns of so many to lag the market. It is my goal to provide such guidance in The Future for Investors.

Contents:

• The Growth Trap
• Creative Destruction or Destruction of the Creative?
• The Tried and True: Finding Corporate El Dorados
• Growth Is Not Return: The Trap of Investing in High-Growth Sectors
• The Bubble Trap: How to Spot and Avoid Market Euphoria
• Investing in the Newest of the New: Initial Public Offerings
• Capital Pigs: Technology as Productivity Creator and Value Destroyer
• Productivity and Profits: Winning Managements in Losing Industries
• Show Me the Money: Dividends, Stock Returns, and Corporate Governance
• Reinvested Dividends: The Bear Market Protector and Return Accelerator
• Earnings: The Basic Source of Shareholder Returns
• Is the Past Prologue? The Past and Future Case for Stocks
• The Future That Cannot Be Changed: The Coming Age Wave
• Conquering the Age Wave: Which Policies Will Work and Which Won’t
• The Global Solution: The True New Economy
• Global Markets and the World Portfolio
• Strategies for the Future: The D-I-V Directives

The Future for Investors: Why the Tried and the True Triumph Over the Bold and the New By Jeremy J. Siegel pdf