High Returns from Low Risk: A Remarkable Stock Market Paradox

High Returns from Low Risk proves that low-volatility, low-risk portfolios beat high-volatility portfolios hands down, and shows you how to take advantage of this paradox to dramatically improve your returns. Investors traditionally view low-risk stocks as safe but unprofitable, but this old canard is based on a flawed premise; it fails to see beyond the monthly horizon, and ignores compounding returns.

Author’s Introduction:

This book reveals a story about the stock market which will change the way you think ABOUT INVESTI NG. It is a story about a paradox I stumbled upon many years ago, one that still amazes me today. It is the story of an ‘inconvenient truth’ for economics professors as it turns their models upside down. A delusional story for professional investors who are managing other people’s money.

It’s also a personal story which will make you smile and wonder. But most importantly, it’s a story that will help you become a better investor, as it describes how to turn scientific insights into profits. It is the modern stock market equivalent of ‘the tortoise and the hare’: a remarkable tale of how low-risk stocks beat high-risk stocks.

My goal is to explain this stock market paradox to you as I would explain it to my father. He is a retired businessman with stock market investing experience. Although he is not an expert in finance, he is a wise man with an entrepreneurial mindset. He has taught our family to respect classical virtues such as prudence, patience, and persistence. Over the years I have discovered that there is a close link between these principles and successful investing. By referring to his values, I will explain this paradox in an understandable way. If my father can understand this story, you might understand it as well.

Contents:

• The Opposite of What You’re Aiming For
• Mr Thrifty Enters the Stock Market
• The Tortoise Beats the Hare
• A Little Bit Is Enough
• Ignoring the Eighth Wonder of the World
• It’s All a Matter of Perspective
• The Dark Appeal of Risk
• Buy Them Cheap and Remember the Trend Is Your Friend
• All Good Things Come in Threes
• Spotting Tortoises and Hares
• Slice and Dice, But Do It Wisely
• Sit Back and Relax
• Trade Little, Be Patient
• The Biggest Victory of All
• The Golden Rule
• The Paradox Is Everywhere
• Will the Paradox Persist?
• Final Reflections

High Returns from Low Risk: A Remarkable Stock Market Paradox By Pim van Vliet pdf