For too many investors, the playbook is all too familiar: Chasing hot stocks and can’t-miss ideas leaves you with lackluster returns. Investment adviser Matt Hall feels your pain, and he has a solution. Hall calls it “evidence-based investing,” and the research he relies on shows that hardly anyone – not even the professional investor – is savvy enough to outwit the market. His alternative: Load up on low-fee index funds and then essentially ignore your portfolio during booms and busts. Hall uses the format of an engaging personal memoir to explain the mind-set underpinning his advice. He begins with his ill-fated stint as a trainee at a stock brokerage firm. The crux of Hall’s strategy remains timely, but part of his tale is a critique of the mostly outdated brokerage practice of raking in commissions by churning investors in and out of individual stocks. In today’s era of online brokers and $9.99 fees, that’s not the average investor’s biggest challenge. While never giving investment advice, getAbstract recommends Hall’s intriguing journey to investors seeking information about a long-term approach to portfolio management.
In this summary, you will learn
- Why chasing hot stocks is a losing bet for most investors,
- What “evidence-based investing” involves and
- How to incorporate this concept into your portfolio.
About the Author
Matt Hall is a speaker, an investment manager and the president of Hill Investment Group in St. Louis, Missouri.
Comment on this summary
10 months agoIn trading on the stock exchange, the percentage of risk is initially set, or the adventure is, after all, at most a mere speculation and the one who wins the timely fluctuations wins
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