Asset Allocation book cover

Asset Allocation by Roger C. Gibson Summary

Asset Allocation
Roger C. Gibson
4.06 (237 Reviews)
Finance
Business
Economics
Visão Geral
Pontos Principais
Autor
Perguntas Frequentes

Overview of Asset Allocation

Forget market timing myths. "Asset Allocation" - Gibson's award-winning masterpiece endorsed by Dr. William Bernstein - reveals why diversification across real estate, commodities, and global securities creates superior risk-adjusted returns. The financial blueprint Wall Street doesn't want everyday investors to discover.

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Principais Lições

1

The Wealth-Building Secret of the World's Greatest Investors

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When Warren Buffett was asked about the secret to his investing success, he didn't mention stock picking or market timing. Instead, he pointed to asset allocation as the foundation of his wealth-building strategy. Ray Dalio, founder of the world's largest hedge fund, attributes 85-90% of investment returns to proper asset allocation-far more than security selection or market timing. This approach isn't new; the Talmud advised 2,000 years ago: "Let every man divide his money into three parts, and invest a third in land, a third in business, and a third keep in reserve." This ancient recommendation essentially advocates for diversification across real estate, stocks, and bonds. The wisdom became strikingly clear during the 2000-2002 bear market when U.S. stocks plummeted 47%, but a diversified investor following this ancient advice would have achieved a positive 5% return during this severe downturn.

2

The Behavior Gap: Why Most Investors Underperform

3

The Math Behind Market Returns: What Really Drives Performance

4

The Futility of Market Timing: Why Staying Invested Matters

5

The Magic of Time: How Investment Horizons Transform Risk

6

The Power of Correlation: Why Diversification Works

7

Overcoming Your Greatest Investment Enemy: Yourself

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