Thursday, October 18, 2007

Book: Intelligent Asset Allocation

I am listing to a 4 CD book called "Intelligent Asset Allocation" thinking it would tell me something about asset allocation, but it turned out to be another "buy index funds and here's why book"

I hate that.

I listened to 2 whole cds which lead up to that statement. Duh! The funny thing is that there was a chapter on asset allocation, but it was really shallow. It told me the following:
  • Invest in many asset classes invest at least 3, but you can add more!
  • Spread your assets among the assets. Own more large cap stocks if you want your returns to mirror the market return, the less large cap stocks you own the more change your returns will be different from every one else's
Note: it doesn't tell you specifically how to calculate how much you should allocate to each asset, only that you should get a bunch, maybe do equal allocation, maybe not, depends on something that you can't make a decision on: "how much you will freak out if you don't get returns like the S&P 500"


Well there are another 2 CDs left. But what is 2 hours wasted in the million ours of commuting I do.


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