Larry E. Swedroe

The book begins with a cursory examination of some of the investing principles reputedly espoused by Warren Buffett, the most famous contemporary investor. After the first couple of chapters of the book, however, mention of Buffett is rare, and I think we get more than just a smattering of Larry Swedroe and his investment philosophy tossed in for good measure.

Not to be worried, though, as Swedroe is a knowledgeable and intelligent investor. The information he passes on to investors is very helpful, although I can't help but feel that he hasn't fully appreciated the effects of the economic environment of the past five to six years. His advice about bonds, for instance, is pure pre-recession, when bonds constituted an important part of the portfolio. Today, however, the return on bonds is so small that (at least as far as federal bonds, state bonds and many municipal bonds) one is better off focusing on stocks and corporate-bond exchange traded funds (ETFs).

I got the feeling that, on the whole, his book is mostly harmless, and can educate many non-investors in the mindset behind effective investing, and that is what Warren Buffett is mainly about - how you think about the market, rather than what you actually do.

The book is an easy read, does not fall into too much jargon, and helps one to get a casual feel for investing.… (mais)

I sat down to read this book the moment I received it from the LT Early Reviewers program and enjoyed it immensely.

A WARNING, however: If you are just beginning to explore the world of personal finance and investing this book is NOT for rank beginners.

This is not a book to read to decide where the bulk of your investment dollars should go - if you NEVER invest in any of these investments you will do just fine (assuming of course, that you are well grounded in the asset allocation of NON-alternative investments described in Swedroe's other books). This book is about where you might consider putting that 5% of your slice-and-dice portfolio that you have designating "money to play with".

This book should be read AFTER you are familiar with the concepts presented in Swedroe's other works (and other excellent books that expound upon the "Bogle-head" type of investment strategy.) If you are not already familiar with the concepts of "Dollar Cost Averaging" "Modern Portfolio Theory" "Buy-and-Hold Investing" then this book will not be of as much use to you - you have some preliminary work to do. If you believe that you can time the market and are going to get rich by following the investment strategy promoted by some newsletter selling you market secrets then you have a LOT of homework to do. This book's intended audience seems to be those that have already "drank the Koolaid" (I'm one of them, I should know).

Having gotten the warnings out of the way - for those of us who have mastered the importance of diversification, asset allocation, and cost control and who are looking to expand into the not-necessary but oh-so-fun nooks and crannies of tweaking our portfolio this book does an excellent job of illuminating the risks/benefits of the "alternative" investments we may be drawn to.

Actually it does its work almost too well - because the alternative investments are presented in a best-to-worst order, by the time you hit the level that you know you are not willing to dip below you almost don't have to read the rest of the book. (I say "almost" because it is always fun to have the data to refute some self-important "expert" when they try to sell you something that you know is a lousy deal.)

I was a little disappointed that, while Swedroe did address Precious Metal Equities, there was not a section devoted to buying (and taking delivery of) physical precious metals. But, with that exception, I think this covered all of the "alternative" investments I might be tempted to (and many that I would never consider touching with a counterfeit $3 bill!). Enjoy!… (mais)