The Elements of Investing. Burton G. Malkiel
Читать онлайн книгу.
108
119 109
120 110
121 111
122 112
123 113
124 114
125 115
126 116
127 117
128 118
129 119
130 120
131 121
132 123
133 124
134 125
135 127
136 128
137 129
138 291
139 130
140 131
141 132
142 133
143 134
144 135
145 136
146 137
147 138
THE ELEMENTS OF INVESTING
Easy Lessons for Every Investor
10 th Anniversary Edition
Burton G. Malkiel
Charles D. Ellis
Preface to Anniversary Edition by Gus Sauter
Foreword to Original Edition by David Swensen
10th Anniversary Foreword by Tim Buckley
Cover design: John Wiley & Sons, Inc.
Copyright © 2021 by Burton G. Malkiel and Charles D. Ellis. All rights reserved.
Published by John Wiley & Sons, Inc., Hoboken, New Jersey.
First Edition published by John Wiley & Sons, Inc. in 2010.
Published simultaneously in Canada.
No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, scanning, or otherwise, except as permitted under Section 107 or 108 of the 1976 United States Copyright Act, without either the prior written permission of the Publisher, or authorization through payment of the appropriate per‐copy fee to the Copyright Clearance Center, Inc., 222 Rosewood Drive, Danvers, MA 01923, (978) 750‐8400, fax (978) 646‐8600, or on the Web at www.copyright.com. Requests to the Publisher for permission should be addressed to the Permissions Department, John Wiley & Sons, Inc., 111 River Street, Hoboken, NJ 07030, (201) 748‐6011, fax (201) 748‐6008, or online at http://www.wiley.com/go/permissions.
Limit of Liability/Disclaimer of Warranty: While the publisher and author have used their best efforts in preparing this book, they make no representations or warranties with respect to the accuracy or completeness of the contents of this book and specifically disclaim any implied warranties of merchantability or fitness for a particular purpose. No warranty may be created or extended by sales representatives or written sales materials. The advice and strategies contained herein may not be suitable for your situation. You should consult with a professional where appropriate. Neither the publisher nor author shall be liable for any loss of profit or any other commercial damages, including but not limited to special, incidental, consequential, or other damages.
For general information on our other products and services or for technical support, please contact our Customer Care Department within the United States at (800) 762‐2974, outside the United States at (317) 572‐3993 or fax (317) 572‐4002.
Wiley publishes in a variety of print and electronic formats and by print‐on‐demand. Some material included with standard print versions of this book may not be included in e‐books or in print‐on‐demand. If this book refers to media such as a CD or DVD that is not included in the version you purchased, you may download this material at http://booksupport.wiley.com. For more information about Wiley products, visit www.wiley.com.
ISBN 978‐1‐119‐77373‐3 (cloth); ISBN 978‐1‐119‐77378‐8 (epub);
ISBN 978‐1‐119‐77380‐1 (epdf)
To our delightful grandchildren, Porter, Mackie, George, Jade, Morgan, Charles, and Rays
PREFACE TO ANNIVERSARY EDITION
At her death in 1999, at the age of 91, Oseola McCarty bequeathed $150,000 to The University of Southern Mississippi. For her generosity, she received an honorary degree from the university and the Presidential Citizens Medal, the second‐highest civilian award in the United States. Her gift was all the more extraordinary because she earned her living washing clothes.
At a very young age, Ms. McCarty was taught by her mother to be a great saver. She made tradeoffs, spending what she needed to live on, but forgoing any luxuries. She had a used TV, but only watched shows that she could pick up over the airwaves. She did not own a car, electing to walk everywhere. She lived in a house that she had inherited from her uncle. Over the course of her lifetime, she amassed a remarkable nest egg, estimated to be about $250,000.
Ms. McCarty was the very model of a disciplined saver. Her example shows that a little bit of will power—and yes, thrift—can add up to big things. This is Lesson Number 1 in any sound financial plan, and it is the first lesson in this wonderful book by Burton G. Malkiel and Charles D. Ellis.
Over the past several decades, Malkiel's A Random Walk Down Wall Street and Ellis's Winning the Loser's Game have helped millions of people to understand the fundamentals of investing and to reach their financial goals. In The Elements of Investing, Malkiel and Ellis distill their wisdom and experience into a sensible plan for people to save and invest.
Some money managers warn that successful investing can be carried out by only the most sophisticated and talented professionals. And, of course, these managers claim to be members of that small club. Malkiel and Ellis argue that successful investing should not be the province of a select few. Football games are not always won by the best quarterback; they are won in the trenches. Investors have to win the war of blocking and tackling.
The Elements of Investing provides a roadmap that can multiply your savings to reach your financial target. It starts with understanding some basic questions, like: When will you need this money? How well can you tolerate investment risk? The answers to those questions can help you build an appropriate asset allocation between stocks,