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| Adrian Mastracci, president of KCM Wealth Management, says “I embrace the principles from these books in the design and management of client portfolios. They emphasize adopting policies and strategies before the tactics for investing the monies." |
For Immediate Release
Vancouver, BC (October 17, 2005): Investors have a thirst for knowledge about their precious investing. Knowledge to assist in stickhandling their portfolio accumulations.
Poet and author James Russell Lowell once said, “Books are the bees which carry the quickening pollen from one to another mind”.
Adrian Mastracci, investment counsel at Vancouver's “fee-only” KCM Wealth Management, comments, “Walk into any well stocked bookstore and the investing section may seem like a maze. Hundreds of titles competing to become a vital part of your bookshelf. A beehive of activity.”
I know what it feels like. I’ve been there. How does one choose some appropriate books among the large lot?
Many investment professionals tout principles such as the importance of investment policies, the portfolio approach, or placing security selection last on list. Investors often wonder why that is so and not just what’s hot to invest in.
I believe there is a short reading list that does justice to this approach. I’ve chosen three books among the long list of candidates. Not an easy task.
My reading list provides insight and understanding into the design and management of portfolios. All the authors are well known. A short list that applies to every portfolio.
I stayed away from books that emphasize investment math. If anyone is in need of a math refresher, I’m happy to loan some Financial Analyst Journals, CFA Magazines and investment papers.
I also skipped books on financial planning concepts. The emphasis was on the simple, long-term principles of investing. Something for everyone’s investment needs.
 These books help investors make more rational portfolio decisions. Here is my short list:
1. “Winning the Loser’s Game”, by Charles D. Ellis
My fist pick covers the policies and strategies for successful investing. It’s one of the best books on the simple, proven, investment strategies that can be easily incorporated into an investment plan.
I especially like the summary quotes found on several pages. Mr. Ellis says in one of them, “Investment policy is the foundation on which portfolios should be constructed and managed”. Another one is, “After a sound investment policy has been formulated and implemented, changes should be made to it carefully and infrequently”.
Understanding the timeless concepts covered in this book provide plenty of examples of how investors can interact with the markets. The summary quotes alone are worth the price.
2. “The Four Pillars of Investing”, by William Bernstein
This selection concentrates on constructing the investment portfolio. The four pillars it covers are the theory, history, psychology and business of investing. The last part stitches the four pillars together.
One nice touch is that each chapter ends with a short summary. Investors who are not keen on reading long chapters will appreciate this feature.
The message is that investors who stay their chosen course, and ignore the daily market distractions, will do well over the long journey of investing. Mastering the four pillars will assist in attaining those personal aspirations.
3. “The Intelligent Investor”, by Benjamin Graham (updated by Jason Zweig)
Mr. Graham is well known for the term “value investing”. His book is about the importance of being disciplined, harnessing the emotional side and thinking for ourselves. A classic refresher in developing long-term strategies for the investment plan.
The interesting part of this book is that Mr. Zweig, senior writer at Money magazine, has added a commentary after each chapter. The comments emphasize a businesslike approach to portfolios. An approach to minimize portfolio losses, which is a basic premise to long-term success.
A word of caution. This is nearly two books in one. It’s the longest of my three picks. So, take it slow and easy to absorb the contents.
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I embrace the principles from these books in the design and management of client portfolios. They emphasize adopting policies and strategies before the tactics for investing the monies.
There are many other fine books on the investing shelves. These three will uncover what is important to you about your investing.
My three favourites are like the bees that carry the pollen. If you can only stand one reading, start with Mr. Ellis’ book.
Total cost of this exercise is around $100. Well worth the investment. I would be interested in your comments.
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