Investment Alchemy: An Investors Guide to Asset Allocation

I was surprised how quick paced and understandable this book is to read. Investment strategies can be very dry. But this book is a fast read and I learned a lot from the author.I have never been able to stay in the market when it got rough. But this book showed me why I need to stay in, even when all the bad news tells me to get out. More important, I learned that if I use a wide allocation of funds, I will actually have less risk. This was a real eye opener for me.I am very grateful the author took the time to write this book. It will change my entire approach to investing. Now maybe I will actually achieve my objectives. Thanks

A must read for anyone wanting to know what investing is all about.

As a financial planner, I am always skeptical of how to books. This book was a huge surprise! There is no fluff or selling. It is straight forward, educational and easy reading. I would recommend that any of my clients read this book to reinforce basic investment principles.In a dynamic market, with so much noise, investors can get confused and make big mistakes. IA gives clear guidelines that are appropriate to all investors. The author's concise, entertaining writing style is easy to follow and retain. I was surprised at how simple he made some very difficult concepts. This always indicates knowledge and understanding of the subject matter.Anyone who picks up this book will benefit but only if they apply the principles. An A+ to the author for his wonderful effort. Thank you.

A believer in a buy-and-hold approach to mutual funds investing, I am trying to develop an efficient asset allocation plan. I have read useful and informative books such as Bogle on Mutual Funds (by John Bogle) and The Winning Portfolio (by Paul Farrell), and while they provide readers with what they consider model portfolios, I was frustrated by the lack of information on how those asset allocation pie-charts were actually derived. If you are the type of person who prefers to learn how to catch fish than to be given one, then Investment Alchemy provides you with a tangible starting point, and it does so in mere 130 pages.By perusing this book, you will have a concrete idea of why an efficiently diversified portfolio should minimize the risk (volatility), thus yielding higher returns. Think of Portfolio A and B having $100 each to start with. Portfolio A grows 10% in the first and second year, while Portfolio B grows 19% in the first and 1% in the second. While the average return rates for both portfolios are 10%, the Portfolio A shows higher balance at the end of the second year. The authors' idea of building an efficiently diversified portfolio centers around this concept. You will then learn how to combine different asset classes to develop such an efficient asset allocation plan without having to be too theoretical. I recommend this book to any mutual fund investors who are trying to establish his/her own investment strategies over a long haul. A basic familiarity with mutual funds and some statistical concepts (such as correlation and standard deviations) will make the reading easier.

I don't know much about investing or the market in general. This book really made it easy to understand, and I hope to apply some of these principles soon.