"Pim has been a pioneer in turning academic insights on the low–risk equity anomaly into a multi–billion investment portfolio. This book presents his magnum opus in a clear and powerful way. It′s definitely a worthy read."
Gerben de Zwart, Head of Quantitative Equities, APG Asset Management, The Netherlands
EVIDENCE–BASED INVESTING EVERYONE CAN UNDERSTAND
For generations, investors have believed that risk and return are inseparable. But is this really true? In High Returns from Low Risk, Pim van Vliet, Founder and fund manager of the multi–billion dollar Conservative Equity funds at Robeco and expert in the field of low–risk investing, combines the latest research with stock market data going back to 1929 to prove that investing in low–risk stocks gives surprisingly high returns, significantly better than those generated by high–risk stocks.
Together with investment specialist Jan de Koning, he presents this counterintuitive story as a modern upbeat stock market equivalent of ′the tortoise and the hare′. This book helps you to construct your own low–risk portfolio, select the right ETF, or find an active low–risk fund in order to profit from this paradox. It also explains why investing in low–risk stocks works and will continue to work, even once more people become aware of the paradox. It′s also a personal story, one that links our human nature and behavior to a prudent and successful investment formula. High Returns from Low Risk provides all the tools one needs to achieve excellent, long–term investment results.
"I loved reading this book. It′s educational, humble, funny and philosophical; quite rare attributes for a financial book. In today′s world, where individuals will have to take more and more responsibility for their savings, this book serves a need: providing sound and pragmatic advice about how to manage one′s savings. Furthermore, this book puts forward an inconvenient truth about investment that is close to my heart: more risk doesn′t necessarily mean more return. On the contrary, it is sound and proactive risk management that permits investment portfolios to have sustainable long–term returns."
Fiona Frick, CEO, Unigestion, Switzerland
"Explaining a financial theory to a broad audience is no easy task, and refuting one of the oldest and best known investment theories higher risk for higher returns harder still. But Pim (and Jan) manage to convince the reader in this easy–to–read and accessible book of their approach. They not only explain low–risk investing, but offer readers a whole set of investment (and even life) lessons at the same time. I would recommend that every investor read this book. It may not turn all readers into low–risk investors, but it certainly will offer valuable insights into the risk/return question."
Ronald van Genderen, CFA, Manager Research Analyst at Morningstar, The Netherlands
Chapter One The Opposite of What You re Aiming For 5
Chapter Two Mr Thrifty Enters the Stock Market 11
Chapter Three The Tortoise Beats the Hare 19
Chapter Four A Little Bit Is Enough 29
Chapter Five Ignoring the Eighth Wonder of the World 35
Chapter Six It s All a Matter of Perspective 43
Chapter Seven The Dark Appeal of Risk 53
Chapter Eight Buy Them Cheap and Remember the Trend Is Your Friend 59
Chapter Nine All Good Things Come in Threes 67
Chapter Ten Spotting Tortoises and Hares 77
Chapter Eleven Slice and Dice, But Do It Wisely 83
Chapter Twelve Sit Back and Relax 91
Chapter Thirteen Trade Little, Be Patient 101
Chapter Fourteen The Biggest Victory of All 109
Chapter Fifteen The Golden Rule 117
Chapter Sixteen The Paradox Is Everywhere 123
Chapter Seventeen Will the Paradox Persist? 129
Chapter Eighteen Final Reflections 133
Epilogue Jan s Perspective 137
Appendix ParadoxInvesting.com 143