<p>ACKNOWLEDGMENTS </p><p>INTRODUCTION <br>Making Investment Mistakes Is Normal <br>You Are a Portfolio Manager <br>A Different Kind of Investing Book <br>What You Will Learn </p><p>1 WHAT IS IT? <br>If We Can’t Explain an Investment, Then We Shouldn’t Invest<br>The Primary Reason to Buy an Individual Stock <br>If You Can’t Explain It, Don’t Invest <br>Who Is Selling It? <br>We May Not Know as Much as We Think <br>Dealing with Unknowns <br>Complex Adaptive Systems<br>Reacting to Available Information <br>Why Accurately Predicting the Future Is So Difficult <br>Investing on the Leading Edge of the Present <br>The Math and Emotion of Investing<br>An Investing Framework <br>Chapter Summary </p><p>2 IS IT INVESTING, SPECULATING, OR GAMBLING? <br>A Simple Filter for Segmenting the Investing Universe<br>What Is Investing? <br>What Is Speculating? <br>Attempting to Day-Trade <br>What Is Gambling? <br>Chapter Summary </p><p>3 WHAT IS THE UPSIDE? <br>Rules of Thumb for Estimating Investment Returns<br>A Flawed Financial Plan<br>Rules of Thumb <br>Estimating Bond Returns <br>Estimating Stock Returns <br>How to Estimate Returns in Your Portfolio <br>A More Reasonable Financial Plan <br>Chapter Summary </p><p>4 WHAT IS THE DOWNSIDE? <br>Rules of Thumb for Evaluating Risk<br>Navigating the Global Financial Crisis <br>What Is Risk? <br>Maximum Drawdowns and Recoveries <br>The Potential Devastating Impact of Large Portfolio Losses <br>Why Assets Fall in Price <br>How to Manage Risk in Your Portfolio <br>Chapter Summary </p><p>5 WHO IS ON THE OTHER SIDE OF THE TRADE? <br>Evaluating What the Seller Knows About an Investment<br>With Whom Are You Trading? <br>Financial Markets Are Increasingly More Competitive <br>Active Manager Underperformance <br>Are Markets Efficient? <br>Adaptive Markets <br>How to Balance Active and Passive Investing in Your Portfolio <br>Chapter Summary </p><p>6 WHAT IS THE INVESTMENT VEHICLE? <br>Evaluating Exchange-Traded Funds, Mutual Funds,<br>and Other Investment Securities<br>Applying the Investment Framework <br>Evaluating Investment Vehicles <br>Closed-End Funds <br>Exchange-Traded Funds <br>Chapter Summary </p><p>7 WHAT DOES IT TAKE TO BE SUCCESSFUL? <br>Identifying What Drives Investment Outcomes<br>Wayfinding <br>Return Drivers <br>Dividend Investing <br>Market Conditions <br>Multiple Return Drivers <br>Chapter Summary</p><p>8 WHO IS GETTING A CUT?<br>Managing Fees and Taxes<br>Types of Investment Expenses <br>Managing Investment Fees <br>Retaining a Financial Advisor <br>Taxes <br>Rebalancing Your Portfolio <br>Inflation and Asset Allocation <br>How to Manage Investment Costs in Your Portfolio <br>Chapter Summary </p><p>9 HOW DOES IT IMPACT YOUR PORTFOLIO? <br>Asset Allocation<br>Asset Allocation Using Modern Portfolio Theory<br>The Asset Garden Approach to Asset Allocation <br>International Stocks and Bonds <br>Fundamental Indexing <br>How to Allocate Assets in Your Portfolio <br>An Alternative Approach <br>Chapter Summary </p><p>10 SHOULD YOU INVEST? <br>Applying the Investment Framework<br>Dollar-Cost Averaging <br>Position Size <br>Market Timing Versus Risk Management <br>Economic Trends <br>Socially Responsible Investing<br>Piecemeal Portfolio Managers <br>Chapter Summary <br>CONCLUSION <br>GLOSSARY </p><p>BIBLIOGRAPHY </p><p>NOTES </p><p>INDEX </p>
