The Smartest Investment Book You'll Ever Read Hardcover – Jan 9 2007
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'"The Smartest Investment Book Youll Ever Read" will provide the enlightenment and the gumption to free yourself from the clutches of the investment industry and the wisdom and direction necessary to get yourself back on track.' -- William Bernstein, author of "The Four Pillars of Investing"
'An investor who reads nothing else would have good guidance and maybe handsome returns based on Solins advice. -- Andrew Allentuck, author of "Bonds for Canadians: How to Build Wealth and Lower Risk in Your Portfolio" and contributor to "The Globe and Mail"
'Bay Street will hate this indexing manifesto that urges Canadians to dump their advisors and go global in their investments.' -- Jonathan Chevreau, "National Post" personal finance columnist
'Dan Solin brings a unique perspective to the obstacles individuals often confront in achieving rates of return that should be theirs for the taking. Anyone applying his simple but powerful message will enhance their chances of investment success.' -- Weston J. Wellington, vice-president Dimensional Fund Advisors
About the Author
Daniel R. Solin is a leading securities arbitration lawyer and a principal in Academic Wealth Management, LLP, a Registered Investment Advisor. The author of Does Your Broker Owe You Money?, Solin has testified before a congressional subcommittee investigating the fairness of the mandatory arbitration system imposed on all investors by the securities industry. He has appeared on The O'Reilly Factor, MSNBC's Week-end Economic Review, CNN's Money, and Bloomberg Television. He has been interviewed on more than 40 radio programs, including USA, CBS, ABC, and a number of regional NPR affliliates. Formerly the host of his own financial cable television show in southwestern Florida, he is a much sought-after speaker for groups of investment professionals, lawyers, and accountants.
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Top Customer Reviews
However, the following sentence from a review posted by "G. Morrison" raises issues which I cannot permit to go unrebutted. Mr. Morrison states:
"Finally, there is a problem of using others work without giving due credit. After reading the book, go to indexfunds.com. You will find there many of the same quotes and data that are used in Solin's book. Also, the information on the website and the information in the book generally parallel each other. Hmmmm...."
This is a very serious allegation. It is also completely untrue.
In the Acknowledgments page of the book (p. 183), I state as follows:
"Mark T. Hebner graciously gave me permission to use many of the quotations in the book, which are among those that can be found at Mark's stellar website, [...]"
Wherever I used any information from the ifa.com web site, I specifically cited to either Mr. Hebner, the President of Index Funds Advisors, or the web site itself. See the references in my book at pp. 147, 148, 150, 151 and 182.
The bibliography section of the book, pp. 138-152 sets forth the sources I used for all information in the book. Indeed, it is important that readers understand the overwhelming authority that supports Smart Investing.
In my (non-professional) opinion, this book is everything most people need to know about investing. That said, some people will need to read Malkiel to know that it's all they need to know.
(It is worth mentioning that this book contains appropriate nods to its various sources of inspiration, including Malkiel.)
The only premise of Daniel Solin's book is that paying a financial advisor to invest your money is akin to throwing your money away.
The author proposes that a wiser method of investing would be to place your money directly, yourself (assuming you have less that $1 million to invest), in a combination of four ETFs ( Exchange Traded Funds), checking back twice a year to re-balance your investments... and BINGO! that's about all there is. (Oh, and the details of the funds you need to buy, and in what ratios, are covered on two pages in Chapter Four.)
Now, sit back and watch your wealth roll in... slowly, as Mr Solin does warn that this method of investing provides a sure but steady "conservative" approach, and there's nothing wrong with that.
Being a keen personal investor myself, and someone who likes to make money rather than give it away to others, I was very interested to read the book, and hear Mr Solin out.
That didn't actually take long, given the lack of real information in the book, so rather than wade through the 150 odd pages of repetitive drivel, where the author seems to enjoy repeating the term "Hyperactive Broker" again and again and again and again... I decided to do some numbers and see how well Mr. Solin's magic funds compare to the investments my broker has been making for me...
Here, I will be very honest, I am not "pro" financial advisor at all. I only use a financial advisor, because my broker has shown consistently better returns on investing my money than I have ( and it's not through lack of trying on my part).Read more ›
Unfortunately, the price of brevity is that some critical details are left out that are mentioned in other investment classics (Four Pillars of Investing, Random Walk down Wall Street).
Specifically, the author fails to mention that rebalancing should ONLY be done in a tax-free account and generally only ever 2 years or so, according so some studies. If you're investing in a taxable account, the taxes will wipe out any benefit of rebalancing. Thus, you should never sell in order to rebalance in a taxable account and only use dividends, distributions and inflows to bring your portfolio in-line.
Secondly, the recommended bond index fund may not be ideal. Academic studies show that bonds with a terms of over 5 years are riskier, and that risk is not compensated with additional yield. A short-term bond index fund may be a safer bet.
Thirdly, the author missed out on the discussion of alternative classes, such as REITs which may benefit some portfolios.
Fourthly, the book does not discuss retirement planning or withdrawal from accounts. To be safe, an investor should probably not withdraw more than 2-4% of their portfolio, unless they want to risk running out of a money in the event of a long bear market or a decade without growth in their portfolio.
Fifth, the book misses out on the discussion of behavioural finance, and it's potentially huge impact on your long term success with the books strategy.
If you're still using a broker, financial planner or buying mutual funds, buy this book now.Read more ›
Most recent customer reviews
Ok, I am not an experienced investor, hence buying this book. I've already read another book called the Portfolio Doctor and attended a financial seminar. Read morePublished on March 16 2007 by Melanie Patterson
We were surprised to see in a review of Dan Solin's The Smartest Investment Book You'll Ever Read, the suggestion that the author has inappropriately taken data from... Read morePublished on Feb. 22 2007 by D. Leonard