In Yes, You Can Supercharge Your Portfolio! Ben Stein and Phil DeMuth show you how your current portfolio is radically underdiversified, costing you money. They offer step-by-step instructions to supercharge it across a variety of investment situations to get you the best risk-adjusted returns.
Most investors spend their time worrying about selecting individual stocks and mutual funds: big mistake! Modern Portfolio Theory—developed in 1952 by economics Nobel Prize winner Harry Markowitz—shows that it’s more important to focus on how our securities interact as a whole. Astonishingly, most investors—including many professionals—still run their investment accounts the same way people did back when “How Much Is That Doggie In the Window” played on the Hit Parade. It’s time to apply what we’ve learned in financial economics over the past 50 years to bring your portfolio into the rock-’n-roll era.
Armed with a computer, you, the investor, can use sophisticated tools to analyze your holdings—tools that would have been the envy of the biggest money managers only a decade ago. First among these is the Monte Carlo simulator: the better mousetrap that investors have been waiting for.
- Step 1: Don’t Skip Step 1
- Step 2: It’s Your Whole Portfolio That Matters
- Step 3: Take on Risk Intelligently
- Step 4: Diversify
- Step 5: Use the Monte Carlo Simulator to Test-Drive Your Portfolio
- Special Topics: A Farewell to Bonds?
- Special Topics: Roll Your Own Hedge Fund
- Special Topics: Investing for Income
- Step 6: Do a Portfolio Reality Check
Yes, You Can Supercharge Your Portfolio!: Six Steps for Investing Success in the 21st Century By Ben Stein, Phil Demuth pdf