CHAPTER 13

Portfolio Construction and Management

Thus far in the book we have dissected the puzzle and examined each piece separately. Let's take a few moments and succinctly sum up the investment process. Think of this method of portfolio management as an operating system. This operating system is not unlike the operating systems one might download on a computer. A computer can do absolutely nothing until it has an operating system like Windows installed on its hard drive. Even the newest comer to the computer world knows this universal truth. Investing is no different. In fact, everything in life is a software program of sorts that is installed in your mind (hard drive), and you are in essence the sum total of the software programs running on your mind's hard drive. To be successful at investing, you need some way of evaluating the fire hose of information available on the subject of investing. You need some way of constricting that fire hose of information down to the trickle of a garden hose. This whole book is in essence that operating system we have found to be the most logical, easy to understand, sensible, and organized method of constructing and managing your portfolio. In the end, you must have accumulated more money than the market and the government can take away from you or you have failed in your quest for a sound retirement. Isn't that what we are all ultimately striving for? At the end of the road, we need more dollars in our account than when we started. We are ...

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