The Investor's Manifesto: Preparing for Prosperity, Armageddon, and Everything in Between


Praise for The Investor's Manifesto

"Bill Bernstein's impassioned new book is indeed a manifesto—a call to action for Main Street investors to free themselves from exploitation by Wall Street money moguls; to understand the brute principles that ultimately determine stock market returns; and to establish the sound and simple strategies necessary for investment success. The Investor's Manifesto is a grand-slam home run."
John C. Bogle, founder of the Vanguard Group, Inc.

"This is the investment book that my kids, step-kids, and sisters will read, remember, and thank me for. Bernstein's way with ideas and words means that for all of them, practical investment is no longer too hard or too dull to master. The ahaaa moment for me was finding out what Bernstein is recommending to his readers now."
Ed Tower, Professor of Economics, Duke University

"The Investor's Manifesto is packed with wisdom and charmingly written. It belongs on every investor's bookshelf."
Burton G. Malkiel, author of A Random Walk Down Wall Street

"There is no better writer on investing than William Bernstein. If he has written it, it is a must-read. Whether you are just beginning your journey or already in retirement, this book is an invaluable guide filled with pearls of wisdom."
Larry Swedroe, Principal and Director of Research, The Buckingham Family of Financial Services, author of Wise Investing Made Simple and The Only Guide You'll Ever Need series

"In The Investor's Manifesto, author William Bernstein, PhD, MD, has condensed his long experience and intellectual wisdom into an easy-to-read and easy-to-understand book that deserves to be on the bookshelf of every serious investor."
Taylor Larimore, coauthor of The Bogleheads' Guide to Investing and The Bogleheads' Guide to Retirement Planning

"The Investor's Manifesto brilliantly lays out timeless investment strategies in a clear, easy-to-understand manner. Whether an investing novice or an experienced investor, Bill Bernstein helps you recover from the market decline and build a solid financial future. Longtime Bernstein fans find the answer to the question 'What would Bill do?'"
Laura F. Dogu, coauthor of The Bogleheads' Guide to Retirement Planning

William J. Bernstein, PhD, MD, is a bestselling author known as a grassroots hero to independent investors. Formerly a practicing neurologist, Bernstein approaches the problems of saving and investing as someone who had to figure it out for himself—from first principles up. He is the author of The Intelligent Asset Allocator and The Four Pillars of Investing—highly regarded, plain-spoken guides on how to build a diversified portfolio without the help of a financial advisor—the editor of the asset allocation journal Efficient Frontier, and the founder of the popular Web site He has also written two volumes of economic history, The Birth of Plenty and A Splendid Exchange, and is a coprincipal in Efficient Frontier Advisors.


Chapter 1 A Brief History of Financial Time.

In the Beginning.

Near-Death in Venice.

The Incredible Shrinking Risk Premium.


Chapter 2 The Nature of the Beast.

Of Ravens and Returns.

History versus Math.

Mr. Gordon's Curious Equation.

Math Detail: The Discounted Dividend Model. 

Home Sweet Home?

Adventures in Equity.

Math Detail: Risk.

Throwing Dice with God.

Gene Fama Looks for Angle and Finds None.

Sandbagged by a Superstar.

Jack Bogle Outfoxes the Suits.

It's Better to be Lucky than Smart.

Bond Funds: A Flatter Playing Field.


Chapter 3 The Nature of the Portfolio.

Four Essential Preliminaries.

The Asset Allocation Two-Step.

Math Detail: Mean-Variance Analysis. 

With Luck, Zigs and Zags.

Chasing Rainbows.


Chapter 4 The Enemy in the Mirror.

Inner Demons.

Behaving Badly.

Bargain-Basement Psychotherapy.


Chapter 5 Muggers and Worse.

The World's Largest Bad Neighborhood.

The Fund Funhouse.


Chapter 6 Building Your Portfolio.

Financial Planning for a Lifetime: The Basics.

Saving for Retirement: Nuts and Bolts.

How to Save: Dollar Cost Averaging and Value Averaging.

Four Investors, Four Plans.

The Rebalancing Question.

Math Detail: Rebalancing, Momentum, and Mean Reversion. 

Teach Your Children Well.


Chapter 7 The Name of the Game.

Investment Theory and History: The Short Course.

The Portfolio Theory of Everything.

We Have Met the Enemy, and He is Us.

Heads I Win, Tails You Lose.

Fire When Ready.

The Books You Need...Aged Like Fine Wine.



About the Author.