The Elements of Investing: Easy Lessons for Every Investor, Updated Edition

PREFACE TO UPDATED EDITION

At her death in 1999, at the age of 91, Oseola McCarty bequeathed $150,000 to the University of Southern Mississippi. For her generosity, she received an honorary degree from the university and the Presidential Citizens Medal, the second highest civilian award in the United States. Her gift was all the more extraordinary because she earned her living washing clothes.

At a very young age, Ms. McCarty was taught by her mother to be a great saver. She made tradeoffs, spending what she needed to live on, but forgoing any luxuries. She had a used TV, but only watched shows that she could pick up over the airwaves. She did not own a car, electing to walk everywhere. She lived in a house that she inherited from her uncle. Over the course of her lifetime, she amassed a remarkable nest egg, estimated to be about $250,000.

Ms. McCarty was the very model of a disciplined saver. Her example shows that a little bit of will power—and yes, thrift—can add up to big things. This is Lesson No. 1 in any sound financial plan, and it is Lesson No. 1 in this wonderful book by Burton G. Malkiel and Charles D. Ellis.

Over the past several decades, Malkiel's Random Walk Down Wall Street and Ellis's Winning the Loser's Game have helped millions of people to understand the fundamentals of investing and to reach their financial goals. In Elements of Investing, Malkiel and Ellis distill their wisdom and experience into a sensible plan for people to save and invest.

Some money managers ...