Book DescriptionNo professional investing advice is good advice. This hard-hitting book proves it with indisputable facts drawn from scientific research and the author's own thirty-five years of experience in the investment industry. Michael Edesess exposes “The Big Investment Lie”: that an investor will gain by hiring professional advisors to beat the market. He proves that no professional investment advisor or manager has ever consistently and predictably beat market averages, not even Warren Buffett. While The Big Investment Lie allows an entire industry to prosper lavishly, investors invariably lose when they hire professional help.
Once you know the truth, you'll want to adopt Edesess's Ten New Commandments for Smart Investing, simple rules you can follow to invest, get a profitable return, and avoid squandering any more of your hard-earned dollars on bogus expertise.
Table of Contents
- Cover Page
- Title Page
- Copyright Page
- Introduction: Excuse Me, Is This the “Real” World?
PART I HOW MUCH YOU PAY
- 1 The Beardstown Ladies versus the Professionals
- 2 The Extraordinarily High Cost of Investment Advice
- 3 The Outer Limits: Hedge Fund Fees
- 4 Taxes Down the Drain
- 5 Why Do We Give Golden Crumbs to Rich People?
PART II HOW LITTLE YOU GET
- 6 Why Investment Professionals Can’t Predict Markets
- 7 The Abject Failure of Professional Advisors and Managers
8 The Market Can Turn on a Dime
- Market Price Movements Fit These Models
- The Random Walk Model
- There Are No Trends
- Let’s Change Our Verb Tenses When Speaking of Investment Markets
- The Market Always Turns on a Dime
- At Long Last Itô Comes into His Own
- Many Processes Are Approximately Random, but None Is Perfectly Random
- The Inevitable Small Depar tures from Randomness
- But Is It Worth the Cost?
- 9 The Claims of Money Managers: “Smoking Our Brand Prevents Cancer”
- 10 Idle, Greedy Hands and Too Much Data Do the Devil’s Work
- 11 The Simple Rules of Nobel Prize Winners
- 12 There’s No Such Thing as a Free Lunch
- 13 Investment Genius or the Thousandth Coin?
PART III HOW YOU ARE SOLD
- 14 Effective Pitches to Sell the Big Lie
- 15 How Investors Delude Themselves
- 16 How Hedge Funds Operate and Are Sold
- 17 How Consultants and Money Managers Sell to Institutional Investors
- 18 Derivatives: The Good, the Bad, and the Ugly
- 19 The Modern Slippery Slope of Business Ethics
- Conclusion: The Ten New Commandments for Smart Investing
- About the Author
- About Berrett-Koehler Publishers
- BE CONNECTED
- Title: The Big Investment Lie
- Release date: January 2007
- Publisher(s): Berrett-Koehler Publishers
- ISBN: 9781605093918