Time and again, individual investors discover, all too late, that actively picking stocks is a loser's game. The alternative lies with index funds. This passive form of investing allows you to participate in the markets relatively cheaply while prospering all the more because the money saved on investment expenses stays in your pocket.
In his latest book, investment expert Richard Ferri shows you how easy and accessible index investing is. Along the way, he highlights how successful you can be by using this passive approach to allocate funds to stocks, bonds, and other prudent asset classes.
- Addresses the advantages of index funds over portfolios that are actively managed
- Offers insights on index-based funds that provide exposure to designated broad markets and don't make bets on individual securities
- Ferri is also author of the Wiley title: The ETF Book and co-author of The Bogleheads' Guide to Retirement Planning
If you're looking for a productive investment approach that won't take all of your time to implement, then The Power of Passive Investing is the book you need to read.
Part I The Active Versus Passive Debate 1
Chapter 1 Framing the Debate 3
Chapter 2 Early Performance Studies 15
Chapter 3 The Birth of Index Funds 33
Chapter 4 Advances in Fund Analysis 41
Chapter 5 Passive Choices Expand 61
Chapter 6 Portfolios of Mutual Funds 79
Part II Chasing Alpha and Changing Behavior 93
Chapter 7 The Futility of Seeking Alpha 95
Chapter 8 Active and Passive Asset Allocation 117
Chapter 9 Changing Investor Behavior 133
Part III The Case For Passive Investing 155
Chapter 10 The Passive Management Process 157
Chapter 11 The Passive Case for Individual Investors 175
Chapter 12 The Passive Case for Charities and Personal Trusts 193
Chapter 13 The Passive Case for Pension Funds 211
Chapter 14 The Passive Case for Advisors 221
About the Author 253