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William J. Bernstein

January 01, 1970

William J. Bernstein (born 1948) is an American financial theorist and neurologist. His research is in the field of modern portfolio theory and he has published books for individual investors who wish to manage their own equity portfolios.[1] He lives in Portland, Oregon.

His bestselling books include The Birth of Plenty and A Splendid Exchange.

Biography edit

Bernstein is a proponent of the equity or index allocation school of thought, believing that all equity selection strategies should be focused on allocating between asset classes, rather than selecting individual stocks and bonds, or from the timing of their sales. Bernstein's first book, The Intelligent Asset Allocator, makes this case in detail; his second book, The Four Pillars of Investing: Lessons for Building a Winning Portfolio (McGraw-Hill, 2002; ISBN 0-07-138529-0), is aimed for those less comfortable with statistical thought. It also puts asset-class returns into long-term historical perspective.

Bernstein is a proponent of modern portfolio theory, which stands in stark contrast to the view that skilled managers can succeed in picking particular investments that will outperform the market, whether through market timing, momentum investing, or finding assets whose future value have been underestimated by the market. He argues that the financial research literature shows that most return is determined by the asset allocation of the portfolio rather than by asset selection.

In 1996, Bernstein introduced Coward's Portfolio, a popular form of lazy portfolio. He explained "a rational coward might split their equity exposure equally between S&P, EAFE, US small, and foreign small stocks."[2] A contemporary implementation of the Portfolio includes 40% short-term bonds, and 15% international equity evenly divided into Europe, Pacific, and emerging markets funds.[3]

Bernstein's third book, The Birth of Plenty, is a history of the world's standard of living; it proposes four conditions that have historically been necessary for it to rise. His fourth book, A Splendid Exchange: How Trade Shaped the World, published in 2008 by Grove Atlantic, is a history of trade. In 2009 his fifth book, The Investor's Manifesto: Preparing for Prosperity, Armageddon, and Everything in Between, was published, which continues the theme of asset allocation in a more accessible way.

In 2014 his sixth book, Rational Expectations: Asset Allocation for Investing Adults, was published. It updated his earlier books on investing to cover the position after the 2007–2008 financial crisis, and the most recent research on investing, including that by Elroy Dimson, Paul Marsh, and Mike Staunton, authors of Triumph of the Optimists.

Bernstein holds a PhD in chemistry and an MD; he practiced neurology until retiring from the field.[4]

Bibliography edit

References edit

  1. ^ Burns, Scott (3 December 2000). "The Couch Potato Portfolio, Plus". Dallas Morning News. Retrieved 25 September 2011.
  2. ^ "The Coward's Portfolio -- A Modest Proposal".
  3. ^ "Lazy Portfolio: Coward's Portfolio". Bogleheads.
  4. ^ Adiga, Aravind (September 1, 2003). "The Man Who Knows Too Much". CNN Money. Retrieved July 7, 2022.

External links edit

 
Wikiquote has quotations related to William J. Bernstein.

January 01, 1970
william, bernstein, born, 1948, american, financial, theorist, neurologist, research, field, modern, portfolio, theory, published, books, individual, investors, wish, manage, their, equity, portfolios, lives, portland, oregon, bestselling, books, include, birt. William J Bernstein born 1948 is an American financial theorist and neurologist His research is in the field of modern portfolio theory and he has published books for individual investors who wish to manage their own equity portfolios 1 He lives in Portland Oregon His bestselling books include The Birth of Plenty and A Splendid Exchange Contents 1 Biography 2 Bibliography 3 References 4 External linksBiography editBernstein is a proponent of the equity or index allocation school of thought believing that all equity selection strategies should be focused on allocating between asset classes rather than selecting individual stocks and bonds or from the timing of their sales Bernstein s first book The Intelligent Asset Allocator makes this case in detail his second book The Four Pillars of Investing Lessons for Building a Winning Portfolio McGraw Hill 2002 ISBN 0 07 138529 0 is aimed for those less comfortable with statistical thought It also puts asset class returns into long term historical perspective Bernstein is a proponent of modern portfolio theory which stands in stark contrast to the view that skilled managers can succeed in picking particular investments that will outperform the market whether through market timing momentum investing or finding assets whose future value have been underestimated by the market He argues that the financial research literature shows that most return is determined by the asset allocation of the portfolio rather than by asset selection In 1996 Bernstein introduced Coward s Portfolio a popular form of lazy portfolio He explained a rational coward might split their equity exposure equally between S amp P EAFE US small and foreign small stocks 2 A contemporary implementation of the Portfolio includes 40 short term bonds and 15 international equity evenly divided into Europe Pacific and emerging markets funds 3 Bernstein s third book The Birth of Plenty is a history of the world s standard of living it proposes four conditions that have historically been necessary for it to rise His fourth book A Splendid Exchange How Trade Shaped the World published in 2008 by Grove Atlantic is a history of trade In 2009 his fifth book The Investor s Manifesto Preparing for Prosperity Armageddon and Everything in Between was published which continues the theme of asset allocation in a more accessible way In 2014 his sixth book Rational Expectations Asset Allocation for Investing Adults was published It updated his earlier books on investing to cover the position after the 2007 2008 financial crisis and the most recent research on investing including that by Elroy Dimson Paul Marsh and Mike Staunton authors of Triumph of the Optimists Bernstein holds a PhD in chemistry and an MD he practiced neurology until retiring from the field 4 Bibliography editThe Intelligent Asset Allocator How to Build Your Portfolio to Maximize Returns and Minimize Risk McGraw Hill New York 2000 ISBN 0 07 136236 3 The Four Pillars of Investing Lessons for Building a Winning Portfolio McGraw Hill New York 2002 ISBN 0 07 138529 0 The Birth of Plenty How the Prosperity of the Modern World was Created McGraw Hill New York 2004 ISBN 0 07 142192 0 A Splendid Exchange How Trade Shaped the World from Prehistory to Today Atlantic Books London 2008 ISBN 978 1 84354 668 9 The Investor s Manifesto Preparing for Prosperity Armageddon and Everything in Between Wiley New York 2009 ISBN 978 0 470 50514 4 Masters of the Word How Media Shaped History Grove 2013 ISBN 978 0 802 12138 7 Rational Expectations Asset Allocation for Investing Adults 2013 ISBN 978 0 9887803 2 3 The Delusions of Crowds Why People Go Mad in Groups Atlantic Monthly Press New York 2021 ISBN 978 0802157096 References edit Burns Scott 3 December 2000 The Couch Potato Portfolio Plus Dallas Morning News Retrieved 25 September 2011 The Coward s Portfolio A Modest Proposal Lazy Portfolio Coward s Portfolio Bogleheads Adiga Aravind September 1 2003 The Man Who Knows Too Much CNN Money Retrieved July 7 2022 External links edit nbsp Wikiquote has quotations related to William J Bernstein Official web site Roberts Russ William Bernstein Podcasts EconTalk Library of Economics and Liberty Coward s Portfolio Simulation on Hello Money Retrieved from https en wikipedia org w index php title William J Bernstein amp oldid 1182076987, wikipedia, wiki, book, books, library,

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