Reddit reviews The Four Pillars of Investing: Lessons for Building a Winning Portfolio

We found 15 Reddit comments about The Four Pillars of Investing: Lessons for Building a Winning Portfolio. Here are the top ones, ranked by their Reddit score.

McGraw-Hill

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15 Reddit comments about The Four Pillars of Investing: Lessons for Building a Winning Portfolio:

u/davidmhorton · 84 pointsr/IWantToLearn

Buy and read these books (first):

Bogle on Mutual Funds https://www.amazon.com/gp/product/111908833X/ref=oh_aui_detailpage_o07_s00?ie=UTF8&amp;psc=1

Bogleheads Guide to Investing
https://www.amazon.com/gp/product/1118921283/ref=oh_aui_detailpage_o06_s00?ie=UTF8&amp;psc=1

The Four Pillars of Investing
https://www.amazon.com/gp/product/0071747052/ref=oh_aui_detailpage_o00_s00?ie=UTF8&amp;psc=1

After reading those, download Robinhood and put $100 in (no more) and play around for like 6 months before even thinking about trying to play with larger amounts.

-- OR - skip Robinhood and download "Betterment" and just slowly put money in there and build some wealth.

Happy Learning.

u/m1garand30064 · 41 pointsr/investing

Dude you are only 33. You have plenty of time to invest and save for retirement. You can actually start withdrawing money at 59 1/2 without penalty, not 70. You are thinking of required minimum distributions which start at 70.

The Roth TSP would be your best bet. After that I'd recommend a Roth IRA with Vanguard. If you dont want to do a lot of research or learn a lot about investing then I'd recommend just dumping the money into a later year lifecycle fund in the TSP (like the 2040) and a target retirement fund of a similar year with Vanguard. These tax advantaged accounts allow you to accrue a lot more money because there is zero tax drag on the investments. I highly recommend maxing these out before doing any after tax investing...assuming you are out of debt and have a 6-12 month emergency fund saved up.

If you dont mind doing a little reading and learning, I'd recommend reading these two books:

http://www.amazon.com/The-Four-Pillars-Investing-Portfolio/dp/0071747052

http://www.amazon.com/The-Intelligent-Asset-Allocator-Portfolio/dp/0071362363/ref=pd_sim_b_1

They will teach you about different asset classes and how to build a portfolio that matches your risk tolerance. If you follow the advice in those books you'll likely do very well...better than the majority of Wall Street money managers.

After you are able to max out your TSP and your Roth IRA you can open up a taxable account. You want to minimize tax drag, so I'd recommend putting the money in broad range index funds (like VTI) so that they wont be dragged down by the tax man. Here's a good read on this:

http://www.bogleheads.org/wiki/Principles_of_tax-efficient_fund_placement

I'd also recommend visiting this forum for further help: http://www.bogleheads.org/forum/index.php

There are some really smart and well respected people on there that will be glad to help you out with any questions you may have. Good luck, and you are actually starting well before most people do so give yourself a pat on the back!

u/throwbubba1 · 14 pointsr/investing

Read. All the famous investors started reading at a young age and read ferociously (ok maybe not all but most).

Go to the library if you can, they generally will have all the quality investing tomes, without some of the "get rich quick manuals" which only benefit the authors.

Here is a few books to start with:

The Four Pillars of Investing
The Intelligent Investor
The Bogleheads Guide to Investing You could start here. Pretty good introduction.
A Random Walk Down Wall Street
The Richest Man in Babylon (PDF) This is a quick read, and more a story than anything. Still worth it.
[The Little Book of Common Sense Investing] (http://www.amazon.com/Little-Book-Common-Sense-Investing/dp/0470102101/ref=pd_sim_b_3?ie=UTF8&amp;refRID=16QN03Q9GFZ6NG5PPJ6P)

Most of this stuff is investment theory. To be a successful investor as an average American, without a job in the finance industry, you probably don't have to read all of those books. If you really want to get into investing, that's a good place to start.

Also, the Bogleheads book is a great one to start with because you can decide if you really are interested in investing. If not, that book is good personal financial advice regardless who you're getting paid. It will benefit the regular American.

u/nobodyknowsimadog_ · 7 pointsr/personalfinance

Read a book you trust on the topic. Below is a book I read when I was 15. I am currently 26 and I already have much more saved for my retirement than my parents do. To this day I follow what I learned when I was younger.

I recommend this one, but any is fine as long it focuses on long term investment and not short-term stock guessing.

https://www.amazon.com/Four-Pillars-Investing-Portfolio-Investment/dp/0071747052/ref=pd_lpo_sbs_14_t_0?_encoding=UTF8&amp;psc=1&amp;refRID=KXH0G78FMN6VG7WDAZJG

u/drsboston · 6 pointsr/personalfinance

So you have a great start!
Question why do you want to invest in options, and with the how did you loose 25% in 6 months with the brokerage account? I'm guessing you are in individual stocks?

You are young and time is on your side instead of taking a gambling approach with individual stocks and options I would suggest opening another vanguard account for your taxable investments and just put it in an index fund, let compounding start to work for you.

Here is a book I really liked on active vs passive investments.

http://www.amazon.com/The-Four-Pillars-Investing-Portfolio/dp/0071747052

Also out of curiosity how are you earning 30k while going to school?

u/SteelSharpensSteel · 4 pointsr/marriedredpill

u/tacticalpanda · 2 pointsr/investing

I'm in the same boat, I bought into FBIOX with $10k, partially because of past performance, partially because I'm an inexperienced investor, and partially because I work at a big data research organization and believe that the pace of technology advancement and the attention this field receives should lead to some big discoveries in the next 10 years. The investment is currently down about 15% from where I bought in.

I've learned two huge lessons in the last half month:

My appetite for risk is not as big as I thought it was.
Chasing past performance is a losing effort.

My underlying belief in the field is still there, however it has been tempered by the feeling that I bought in on the losing side of a bubble. I've been reading a book, The Four Pillars of Investing, and can definitely see the wisdom in Bernstein's approach of detaching yourself from asset selection and instead focusing on asset allocation (spread across foreign and domestic stocks, short term bonds, and REITs). Hind sight is 20/20, but if I were to buy in again, I would have done this rather than buying into any specific sector. In this respect, I just consider my losses the cost of education.

I realize that none of this helps you with the decision of what to do in the future. The fact is, the market is efficient enough that all your concerns have already been priced into the value of the stock. You are essentially flipping a coin when you decide to hold or sell. How much money do you have invested, and are you willing to flip the coin again for another +/- 10%?

One other thing I would consider is the one year time frame for short term capital losses vs long term capital losses. Depending on your portfolio, and your take home income, taking the loss as a short term capital loss may make the most sense to negate some of your regular income that is taxed at a higher rate.

u/meats_the_parent · 2 pointsr/financialindependence

Asset Class|Target %|Ticker
:---|:--:|:--:
US Total Stock Market| 19.2%|VTI
US Small Value|12.8%|VBR
US REITs|8%|VNQ
Int. Pacific|8%|VPL
Int. Europe|8%|VGK
Int. Value|16%|VSS
Int. Emerging Mkts.|8%|VWO
Fixed Income|20%|VARIOUS

*****

My glide-path is to add 1% in fixed-income every year until it reaches 40%-50%, at which time the allocation will remain constant.

Rebalancing is done with new money (when possible). 5/25 banding is in use; i.e., if an asset class is meant to comprise < 20% of the portfolio, then the tolerance is +-25% (relative percentage) of the desired %. If the asset class is meant to comprise >= 20% of the portfolio, then the tolerance is +-5% (absolute percentage) of the desired %. (Credit for technique goes to Larry Swedroe).

Influences on my portfolio:

u/dogedick_coffeetable · 2 pointsr/personalfinance

Try to spend as much time continuously working as possible. This may take a number of sacrifices to do. Depending on what part of the film industry you may be waiting for jobs, or you may have one of the jobs where you just fly to the next project elsewhere in the world.

If you are in one of the more mobile jobs do that. The more time you continuously work the better off you'll be.

Now if you have reasonably consistent income you need to keep your expenses down and not accumulate debts. The reason being you need to save as much money as you possibly can.

Any retirement fund benefits need to be taken. The remainder needs to be invested. Those investments will be what generates your income.

My recommended reading to learn how to be a good passive investor is The Four Pillars of Investing.
http://www.amazon.com/Four-Pillars-Investing-Building-Portfolio/dp/0071747052/ref=sr_1_1?s=books&amp;ie=UTF8&amp;qid=1450552472&amp;sr=1-1&amp;keywords=the+four+pillars+of+investing

You may want to consider shares that consistently pay dividends and bonds. This is not always the best long term strategy but knowing the film industry this may be a safer option for you.

u/jewey122 · 2 pointsr/StockMarket

I'd suggest reading the Four Pillars of Investing

u/10khours · 1 pointr/investing

Start by reading the recommended books in the sidebar. My personal favorite investment book is:

http://www.amazon.com/The-Four-Pillars-Investing-Portfolio/dp/0071747052

Becoming a good investor is something that is learned by reading books. You may also want to read some more general books on saving and budgeting. While you are reading these books, focus on saving money and putting it into the highest interest savings account you can find.

I would also advise that you focus on investing in yourself if possible. An education which leads to a higher paying job will be an investment that gives you far higher returns than the stock market.

u/can0peners · 1 pointr/personalfinance

Open the Roth and fund it for last year and this year, don't miss the deadline, get the money in there...if you ever need the principal you can pull it back without penalty.
Next read this: The Four Pillars of Investing and allocate your funds and build a plan to ensure you will have enough money for retirement.
you have a unique opportunity to create a lot of wealth. once you create your plan use the extra to have fun or invest in real estate or whatever else.

u/SapientChaos · 1 pointr/portfolios

Here a good book to start out with:

http://www.amazon.com/The-Four-Pillars-Investing-Portfolio/dp/0071747052

u/sacundim · 1 pointr/programming

http://www.amazon.com/The-Four-Pillars-Investing-Portfolio/dp/0071747052

EDIT: This is an excellent short summary/review of the book. Not a substitute for it, but should help you decide whether to take my recommendation or not.

u/km0010 · -1 pointsr/RobinHood

Currency position that's not hedging anything.

1 year is short for stock investing. The returns over this period are mostly unpredictable. Momentum works at this frequency, but that's a trading technique strictly relying on the return signal with nothing to do with the company's financials or business.

This portfolio doesn't make sense from a modern portfolio theory point of view. So, maybe the owner is making concentrated high-conviction purchases? But, then they're asking if they should 'sell it all'. Must be speculation. (Plus, seems like most everything here is speculation.)

(Only joined a year ago. We don't know how long the positions have been held. I assume not too long.)

I didn't give a tip. Here: https://www.amazon.com/Four-Pillars-Investing-Building-Portfolio/dp/0071747052/