The Power of Passive Investing PDF

The Power of Passive Investing PDF

The Power of Passive Investing PDF (More Wealth with Less Work) 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.

Category: Stock

Author: RICHARD A. FERRI

Language: English

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Introduction

A practical guide to passive investing

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.

Table of Contents- The Power of Passive Investing PDF

Contents
Foreword
Preface
Acknowledgments

Part I: The Active Versus Passive Debate
Chapter 1: Framing the Debate
In the Beginning, There Were Active Funds
Passive Investing Makes Its Case
All about Indexes and Benchmarks
The Portfolio Management Debate
Summary
Chapter 2: Early Performance Studies
Cowles Commission Report
The Quiet Period
The Rise of Mutual Funds
The Roaring 60s
Summary
Chapter 3: The Birth of Index Funds
The First Indexed Portfolios
The First Index Fund
Summary

Chapter 4: Advances in Fund Analysis
The Early Years in Review
Building on Success
The Three Factor Model
Three-Factor Analysis for Everyone
Four-Factor Models and Beyond
Does Anyone have Skill?
Summary
Chapter 5: Passive Choices Expand
The Growth of Indexing
The First Fixed Income Index Fund
International Equity Index Funds
Real Estate Investment Trusts
U.S. Small Cap
Revisiting SPIVA Performance Studies
Active Management Invades Indexing
Summary
Chapter 6: Portfolios of Mutual Funds
Efficient Portfolios
Portfolio Choices
The Bottom Line Is Your Bottom Line
Summary

Part II: Chasing Alpha and Changing Behavior
Chapter 7: The Futility of Seeking Alpha
All That’s Needed Is a Crystal Ball
Past Performance as a Way to Predict Future Returns
Fund Expenses as a Predictor of Top Performance
Ratings as a Predictor of Top Performance
Qualitative Factors as a Predictor of Top performance
Summary
Chapter 8: Active and Passive Asset Allocation
Tactical Versus Strategic
Mutual Fund Flows Show Bad Timing
Measuring the Timing Gap
Dumb Money versus Smart Money
Putting It All Together
Summary
Chapter 9: Changing Investor Behavior
Helping People Go Passive
Three Non-Indexers
Investing Is Serious Business
Summary

Part III: The Case for Passive Investing
Chapter 10: The Passive Management Process
The Five Step Process
Investment Policy Statements
Summary
Chapter 11: The Passive Case for Individual Investors
Begin at the End
Estimating Future Obligations
The Asset Side
Matching Assets to Obligations
Asset Allocation
Risk!
Investment Decisions
Hired Help
Summary
Chapter 12: The Passive Case for Charities and Personal Trusts
Your Role as a Trustee
Laws Governing Trusts
Trusts and Passive Investing
Private Trust Management
Nonprofit Organizations
Passive Versus Active Investing
Watch Out For Conflicts of Interest
Summary
Chapter 13: The Passive Case for Pension Funds
Legal Acts Governing Pensions
The Plight of the Small Plan
Self-Directed Retirement Plans
Summary
Chapter 14: The Passive Case for Advisors
More Risk Means More Fees
Types of Advisors
The Role of the Fiduciary Advisor

What Clients Expect from Advisors
What Advisors Present
Summary
Glossary
Notes
About the Author
Index

Reviews

Rick Ferri has done investors a great favor by collecting in one place the consistently overwhelming evidence that index funds keep beating active funds. The only remaining problem for ‘passive’ investing is the name. Why don’t we all agree on a single change and call indexing success investing?
–CHARLES D. ELLIS, bestselling author of Winning the Loser’s Game and The Elements of Investing

Indexing wins because indexing must win. The best index funds win simply because they eliminate management fees and sales loads, and minimize operating costs and portfolio turnover and its costs. But Ferri takes us from theory to reality, providing scores of examples and tabulations that prove that very point. I commend it to you.
–JOHN C. BOGLE, founder, The Vanguard Group

Ferri writes in beautiful, simple language what I have been trying to tell all but the largest institutional investors–to build a diversified portfolio of index funds. I wish I had written the book myself.
–LAURENCE SIEGEL, Research director, Research Foundation of CFA Institute

Excerpts

About the author

RICHARD A. FERRI is the founder of the investment firm Portfolio Solutions® and a Forbes writer. Portfolio Solutions manages nearly $1 billion in separate accounts for high-net-worth individuals, families, non-profit organizations, and corporate pension plans. Ferri has written or cowritten six investment books, including the Wiley titles The ETF Book and The Bogleheads’ Guide to Retirement Planning. He earned a bachelor of science in business administration from the University of Rhode Island and a master of science in finance from Walsh College. Ferri is also a CFA Charterholder as designated by the CFA Institute, a global association of investment professionals. For more information, visit www.RickFerri.com and www.PortfolioSolutions.com.

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