Skip to Content
Value Averaging: The Safe and Easy Strategy for Higher Investment Returns
book

Value Averaging: The Safe and Easy Strategy for Higher Investment Returns

by Michael E. Edleson, William J. Bernstein
October 2006
Intermediate to advanced
256 pages
5h 36m
English
Wiley
Content preview from Value Averaging: The Safe and Easy Strategy for Higher Investment Returns

Contents

Foreword by William J. Bernstein

Preface to the 2006 Edition

Preface to the 1993 Edition

Introduction

1 Market Risk, Timing, and Formula Strategies

RISK AND MARKET RETURNS

Market Returns over Time

Distribution of Market Returns

Risk and Expected Return

MARKET TIMING AND FORMULA STRATEGIES

Timing the Market

Automatic Timing with Formula Strategies

ENDNOTES

2006 NOTE

2 Dollar Cost Averaging Revisited

DOLLAR COST AVERAGING: AN EXAMPLE

SHORT-TERM PERFORMANCE

Over One-Year Periods

Over Five-Year Periods

LONG-TERM PROBLEMS WITH DOLLAR COST AVERAGING

Growth Equalization

SUMMARY

ENDNOTES

3 Value Averaging

VALUE AVERAGING: AN INTRODUCTION

SHORT-TERM PERFORMANCE

LONG-TERM PERFORMANCE AND VALUE AVERAGING

Linear, or Fixed-Dollar, Strategies

Adjusting Strategies for Growth

SUMMARY

ENDNOTES

2006 NOTES

4 Investment Goals with Dollar Cost Averaging

BACKGROUND

Lump-Sum Investments

Using the Formula

Annuities: Periodic Investments

Dollar Cost Averaging and Annuities

READJUSTING THE INVESTMENT PLAN

The Readjustment Process

Flexibility

Down-Shifting Investment Risk

GROWTH-ADJUSTED DOLLAR COST AVERAGING

Exact Formula

Approximate Formula

Readjusting the DCA Plan

SUMMARY

ENDNOTES

Appendix to Chapter 4: Constructing a DCA Readjustment Spreadsheet

5 Establishing the Value Path

VALUE AVERAGING VALUE PATHS

The Value Path Formula

Flexible Variations on the Value Path Formula

Readjusting the VA Plan

A Cautionary Note

An Alternate Method

SUMMARY

ENDNOTES

Appendix to Chapter 5: Constructing a VA Readjustment ...

Become an O’Reilly member and get unlimited access to this title plus top books and audiobooks from O’Reilly and nearly 200 top publishers, thousands of courses curated by job role, 150+ live events each month,
and much more.

Read now

Unlock full access

More than 5,000 organizations count on O’Reilly

AirBnbBlueOriginElectronic ArtsHomeDepotNasdaqRakutenTata Consultancy Services

QuotationMarkO’Reilly covers everything we've got, with content to help us build a world-class technology community, upgrade the capabilities and competencies of our teams, and improve overall team performance as well as their engagement.
Julian F.
Head of Cybersecurity
QuotationMarkI wanted to learn C and C++, but it didn't click for me until I picked up an O'Reilly book. When I went on the O’Reilly platform, I was astonished to find all the books there, plus live events and sandboxes so you could play around with the technology.
Addison B.
Field Engineer
QuotationMarkI’ve been on the O’Reilly platform for more than eight years. I use a couple of learning platforms, but I'm on O'Reilly more than anybody else. When you're there, you start learning. I'm never disappointed.
Amir M.
Data Platform Tech Lead
QuotationMarkI'm always learning. So when I got on to O'Reilly, I was like a kid in a candy store. There are playlists. There are answers. There's on-demand training. It's worth its weight in gold, in terms of what it allows me to do.
Mark W.
Embedded Software Engineer

You might also like

ValuFocus Investing: A Cash-Loving Contrarian Way to Invest in Stocks

ValuFocus Investing: A Cash-Loving Contrarian Way to Invest in Stocks

Rawley Thomas, William F. Mahoney

Publisher Resources

ISBN: 9780470049778Purchase book