Man vs Machine

100 Ways to Beat the Market

Man vs Machine


Since I'm always looking for ways to beat the market (not that I always succeed, mind you), this new gem caught my eye. Two other books by this author have helped me in the past, so I'm naturally interested in any new ones. The title tells it all. Mr. Walden offers 100 stratagems for investment, including ways to find the best potential investments, and methods for keeping one's cool during market storms. The book is divided into six sections: getting started, basic strategies, portfolio building, doing research, choosing advice, and "maintaining a healthy perspective."  Short, 1-4 page chapters detail specific methods that relate to the major headings.

For us indexers, Mr. Walden discusses our nearest and dearest—index funds—in Chapter 1. He challenges the investor to set up two portfolios, active and passive, and rate them against each other. He then says, and I quote:

 
"Unless you beat the odds, your passive, worry-free portfolio will earn more than your own actively managed portfolio."