Introduction to the original edition
THIS BOOK WAS ORIGINALLY INSPIRED by my desire to give each of my five children a gift. I figured if I could teach them how to make money for themselves, then I would be giving them a great gift—truly one that would keep giving. I also figured that if I could explain how to make money in terms that even my kids could understand (the ones already in sixth and eighth grades, anyway), then I could pretty much teach anyone how to be a successful stock market investor.
While the concepts covered in this book may seem simple—perhaps too simple for sophisticated investors—each step along the way is there for a reason. Stay with it, and I assure you the payoff for both beginning and experienced investors will be huge.
After more than 30 years of investing professionally and after 14 years of teaching at an Ivy League business school, I am convinced of at least two things:
If you really want to "beat the market," most professionals and academics can't help you, and
That leaves only one real alternative: You must do it yourself.
Luckily, that might not be such a bad thing. As improbable as it may seem, you can learn to beat the market. Through a simple, step-by-step process, this book can teach you how. To help you along, I have included a magic formula. The formula is simple, it makes perfect sense, and with it, you can beat the market, the professionals, and the academics by a wide margin. And you can do it with low risk. The formula has worked for many years ...
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