• Overview
• The 12-Step Overview [PDF]
• About the Author
• Preface
• Short Book on Investing
• PowerPoint [PDF]
• Gallery
• FAQ
• IFA Store
• Backtested Performance Data
• Intro Print Version [PDF]

Active Investors

• Page 1
• Page 2
• Page 3

Quotes

1.1 Introduction

1.2 Definitions

• 1.2.1 Active Investors
• 1.2.2 Index Funds Investors
• 1.2.3 Beating the Market
• 1.2.4 Risk Measurements

• 1.3.1 Active Investors are Everywhere
• 1.3.2 Active Investors are Gamblers
• 1.3.3 Active Investors Lose
• 1.3.4 The Poor Accounting of Active Investors
• 1.3.5 Stock Market Prices are Random
• 1.3.6 Stock Markets are Efficient
• 1.3.7 When Risk Capacity is not Matched with Risk Exposure
• 1.3.8 The High Cost of Turnover
• 1.3.9 The Emotional Stress of Active Investing
• 1.3.10 More than 1,500 Investors can be Wrong

• 1.4 1.Active Investors Anonymous
• 1.4.2 The History of 12-Step Recovery Programs
• 1.4.3 The Big Book of Investing
• 1.4.4 Top Investors Agree
• 1.4.5 Index Funds Investors Win

1.5 Summary

1.6 Review Questions

Print Version [PDF]

Nobel Laureates

• Page 1
• Page 2
• Page 3

Quotes

2.1 Introduction

2.2 Definitions

• 2.2.1 Nobel Prize in Economic Sciences
• 2.2.2 The University of Chicago, Center for Research
  in Security Prices, and the Stock Market Database

• 2.3.1 Investors Rely on Lady Luck
• 2.3.2 Active Investors are Unaware of Academic Studies

2.4 Solutions

• Nobel Laureates and Academics

2.5 Summary

2.6 Review Questions

Print Version [PDF]

Stock Pickers

• Page 1
• Page 2
• Page 3
• Page 4

Quotes

3.1 Introduction

3.2 Definitions

• 3.2.1 Stock Pickers
• 3.2.2 Adjusted Performance

• 3.3.1 Why Stock Pickers Fail
• 3.3.2 The Stock Picker’s Graveyard
• 3.3.3 Incubator Funds
• 3.3.4 Studies and Observations that Show the Daunting Odds of Stock Picking
• 3.3.5 Stock Pickers and Coin Flippers
• 3.3.6 Stock Pickers are Focused on Short Term
• 3.3.7 Stock Pickers are Style Drifters
• 3.3.8 Stock Pickers are Looking for a Needle in a Haystack
• 3.3.9 Stock Pickers Play a Zero Sum Game
• 3.3.10 Stock Pickers in International Markets
• 3.3.11 Stock Pickers in Small-Cap Markets
• 3.3.12 Stock Pickers Pay More Taxes
• 3.3.13 Stock Picking Gurus and Their Real Records
• 3.3.14 Stock Pickers Don’t Want You to Know the Truth

3.4 Solutions

3.5 Summary

3.6 Review Questions

Print Version [PDF]

Time Pickers

• Page 1
• Page 2
• Page 3

Quotes

4.1 Introduction

4.2 Definitions

• 4.2.1 Random Walk Theory
• 4.2.2 Efficient Market Hypothesis

• 4.3.1 Pickers are Fooled by Randomness
• 4.3.2 Academic Studies Prove that Time Picking doesn’t Work
• 4.3.3 Time Picking Gurus
• 4.3.4 Gains and Losses are Impossible to Identify in Advance
• 4.3.5 Time Pickers Pay More Taxes

4.4 Solutions

4.5 Summary

4.6 Review Questions

Print Version [PDF]

Manager Pickers

• Page 1
• Page 2
• Page 3

Quotes

5.1 Introduction

5.2 Definitions

5.3 Problems

• 5.3.1 Past Performance is No Guarantee of Future Results
• 5.3.2 Persistence in Track Records
• 5.3.3 Sources of Information Used by Manager Pickers
• Are Highly Rated Funds Good Thing?
• The Forbes Mutual Fund Honor Roll
• Mutual Fund Advertisements
• 5.3.4 Markets Make Managers
• 5.3.5 Irrelevant Benchmarks

5.4 Solutions

5.5 Summary

5.6 Review Questions

Print Version [PDF]

Style Drifters

• Page 1
• Page 2

Quotes

6.1 Introduction

6.2 Definitions

• 6.2.1 Investment Style
• 6.2.2 Style Drift

• 6.3.1 Style Drift Alters Risk Exposure
• 6.3.2 Style Drifters
• 6.3.3 Style Drift and the Fama/French Risk Factors
  Style Picking

6.4 Solution

6.5 Summary

6.6 Review Questions

Print Version [PDF]