Behind every hedge fund or mutual fund there will either be a CFO or COO who has read or is if not, is at least familiar with the concepts explained in this book.
These are based upon the following simple facts: 1) the majority of professional money managers underperform the market and 2) there is no proof that any fundamental or technical analytical tool will work in the long run. In this book Bernstein, the author, explains clearly and scientifically what we have guessed all along and know deep in our hearts: that the best way to profit from the market consistently year in year out, decade after decade is just to spread your investments in such a way that you get the maximum return for the least amount of risk your entire portfolio is susceptible to and forget about it. When you go through this book (which I urge every trader of intermediate level to do so), you will realise just how undesirable it is to invest only in the Malaysian market. This is because one of the key pillars of portfolio optimisation is not only being able to invest in a broad range of securities like stocks, bonds and securities, but also in foreign and domestic securities. Which kind of makes intuitive sense if you think about it. For these reasons alone, this book shows that it clearly pays to put more time thinking about how to split your investments up than looking for which investments to buy.
This book is essential for any trading library.
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