The Little Book that Still Saves Your Assets E-Book

David M. Darst

• Herausgeber: John Wiley & Sons
• Kategorie: Fachliteratur
• Serie: Little Books. Big Profits
• Sprache: Englisch

Seitenzahl: 235

Veröffentlichungsjahr: 2012

Beschreibung

Protect assets during times of crisis with this new edition of the New York Times bestseller!

When the first edition of this book appeared it was before the economic crash. This new edition shows how David Darst's particular kind of asset allocation helped his investors during that volatile period. It also contains a discussion of downside and risk tolerance and new self-tests for determining your risk tolerance. And, finally, it reveals how the asset allocation model has changed since 2008. In all of these areas, the author will continue to include new insightful anecdotes like those that peppered the first edition.

• Shows how to tap into the use of asset allocation strategies to protect your investments
• Offers updated information on downside and risk tolerance
• The next step resource from a managing director of Morgan Stanley and the bestselling author David Darst
• Includes a Foreword by Jim Cramer

David Darst reveals how to use asset allocation to increase your portfolio that tap into the investment strategies of the wealthy.

Leseprobe

Contents

Foreword

Introduction

Chapter One: What Happened?? What Happened!!

Chapter Two: We All Do It (Even if We Don’t Realize It)

Chapter Three: Everyone Needs an Uncle Frank

Chapter Four: Building Your House

Chapter Five: Parts of the Whole—Combining Dreams into a Plan

Chapter Six: Two Strategies to Win the Battle for Investment Survival

Chapter Seven: Do You Know Where You Are Going?

Chapter Eight: Mix, Don’t Match

Chapter Nine: Our Minds, Our Selves

Chapter Ten: The Jockey Matters as Much as the Horse

Chapter Eleven: Riding Out Storms

Chapter Twelve: Build Your House on These Rocks

Chapter Thirteen: Count to Zen

Chapter Fourteen: Seven Quick Ways to Ruin

Chapter Fifteen: The Road Less Traveled That You Should Take Right Now

Who Are You? (Determining Your Investment Profile)

What Do You Think? (Determining Your Investment Outlook)

What Works for You? (Determining Your Investment Selection)

Don’t Take My Word for It

Acknowledgments

Praise from

The Little Book That Saves Your Assets

“. . . insightful, tidy, essential, provocative, and witty . . .”

Jerry Goodman, a.k.a Adam Smith, Author of The Money Game and Supermoney

“All too often, wisdom arrives in heavy doses. But not with David Darst. Although the wisdom he provides has extraordinary value, Darst delivers it here like fine champagne: full of sparkle and so good you hate to finish it. All investors have much to gain from his sparkling advice.”

Peter L. Bernstein, Author of Capital Ideas, Against the Gods, The Power of Gold, and Capital Ideas Evolving

“Asset allocation is an art, David Darst is the master. Now he has put it into an entertaining and readable form that enables individual investors to do what the pros do, build and save their assets!”

Consuelo Mack, Anchor and Managing Editor, Consuelo Mack WealthTrack on PBS

“David Darst is a walking encyclopedia of investment information. This book is an invaluable source and reference.”

Barton Biggs, Author of Hedgehogging, Wealth, War & Wisdom, A Hedge Fund Tale of Reach and Grasp, and Diary of a Hedgehog: Biggs’ Final Words on the Market

“David Darst has combined his decades of experience at two of the best Wall Street firms with his inherent common sense to produce a readable guide through the mysteries of investing. By following his principles you should not only see the value of your assets grow but you should achieve peace of mind in the process.”

Byron Wien, Vice Chairman, Blackstone Advisory Partners LP

“David Darst has produced another winner! This book is a must-read for any investor who is serious about seeking the best risk-adjusted return on a portfolio. It is succinctly written, incorporates the latest insights from academic research, and is accessible to laypeople as well as being relevant to investment professionals.”

Samuel L. Hayes, Jacob H. Schiff Professor of Investment Banking, Emeritus, Harvard Business School

Little Book Big Profits Series

In the Little Book Big Profits series, the brightest icons in the financial world write on topics that range from tried-and-true investment strategies to tomorrow’s new trends. Each book offers a unique perspective on investing, allowing the reader to pick and choose from the very best in investment advice today.

Books in the Little Book Big Profits series include:

The Little Book That Still Beats the Market by Joel Greenblatt

The Little Book of Value Investing by Christopher Browne

The Little Book of Common Sense Investing by John C. Bogle

The Little Book That Makes You Rich by Louis Navellier

The Little Book That Builds Wealth by Pat Dorsey

The Little Book of Bull Moves by Peter D. Schiff

The Little Book of Main Street Money by Jonathan Clements

The Little Book of Safe Money by Jason Zweig

The Little Book of Behavioral Investing by James Montier

The Little Book of Big Dividends by Charles B. Carlson

The Little Book of Bulletproof Investing by Ben Stein and Phil DeMuth

The Little Book of Commodity Investing by John R. Stephenson

The Little Book of Economics by Greg Ip

The Little Book of Sideways Markets by Vitaliy N. Katsenelson

The Little Book of Currency Trading by Kathy Lien

The Little Book of Stock Market Profits by Mitch Zacks

The Little Book of Big Profits from Small Stocks by Hilary Kramer

The Little Book of Trading by Michael W. Covel

The Little Book of Alternative Investments by Ben Stein and Phil DeMuth

The Little Book of Valuation by Aswath Damodaran

The Little Book of Emerging Markets by Mark Mobius

The Little Book of Hedge Funds by Anthony Scaramucci

The Little Book of the Shrinking Dollar by Addison Wiggin

The Little Book of Bull’s Eye Investing by John Mauldin

The Little Book of Stock Market Cycles by Jeffrey A. Hirsch

The Little Book That Still Saves Your Assets by David M. Darst

Cover design: Paul McCarthy

Copyright © 2013 by David M. Darst. All rights reserved.

Published by John Wiley & Sons, Inc., Hoboken, New Jersey.

Published simultaneously in Canada.

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ISBN 978-1-118-42352-3 (cloth); 978-1-118-49764-7 (ebk); 978-1-118-49791-3 (ebk); 978-1-118-49763-0 (ebk)

For

Guy, Susan, and Jim;

Bob, Eleanor, and Diane; Edward and Kim;

Elizabeth, Charlie and Diane, and Charlie;

David and Liz

Foreword

I would tell you that David Darst is one of the best investors out there, but that doesn’t do him justice. The man is a financial visionary, an incredible teacher, and knowledgeable beyond belief. Let me put it this way: David has figured out more markets than I have ever traded in. He has been the dominant thinker when it comes to the vast panoply of investments out there. He’s your guide through the financial supermarket we must all navigate, and without him, you will most surely get lost in the myriad aisles and end up buying the wrong thing at the wrong time. And in this supermarket there is no money-back guarantee. Or, to switch metaphors, with so many new things you can invest in, picking the right ones has become as difficult and frightening as climbing Mount Everest without this Sherpa showing you the way.

So I thought I was prepared when I started reading The Little Book That Saves Your Assets. I’d read David’s earlier books and loved them, especially The Art of Asset Allocation, a guidebook that professionals thumb through when they get stumped. And when I first worked with David at Goldman Sachs, I cut my teeth on his Complete Bond Book, which I still consider the best treatment of the subject yet written. Until I devoured it I thought I knew how the stock market worked; silly me. David explained that the bond market is the fundament that everything else gets priced off of. That bit of advice makes the difference between amateurs and professionals, and they don’t teach it anywhere. The Art of Asset Allocation remains on my Mad Money desk, right next to my terminals that flicker stock prices, a permanent warning that I am being foolish if I think only of individual stocks and not a caller’s broader array of life savings.

But this book is something else entirely: the most accessible guide I’ve ever seen to applying the most fundamental principle of investing, asset allocation. Asset allocation, not stock picking, not sector funds, not guessing the direction of the Dow Jones averages, is the key to financial success. This book should be required reading for every nonprofessional investor, not to mention many of the pros who still don’t get it. In fact, even if you have no desire to manage your own money, you should still read this book, because David has strategies in here that can work for everyone who wants to grow wealth or simply protect it. This book is pretty much a one-decision guide—either you want to lose your assets or you want to save them; the former group shouldn’t bother with what Darst has to say, while the latter group needs it now!

We’ve been flooded with books that promise to do just that, books that often either aren’t worth reading or are unreadable. The Little Book That Saves Your Assets is just the opposite. Why? In part it’s because David is a stellar teacher. I know this firsthand because he was my first real teacher at Goldman Sachs, and it’s hard not to mention another of David’s former protégés, Eddie Lampert, a phenomenal hedge fund manager with a great track record, whom David recruited as a teenager right out of high school. Back then he taught us poetry and literature while he drilled us over and over again on the basics. Decades later he’s still got the knack, working Yeats and Robert Frost into his advice and explanations. Investing for English majors—sounds good to me. He makes it enjoyable, he makes the necessary fun!

David also knows how to put his metaphors to work, and that matters more than you might expect. On Wall Street the pros use complicated-sounding language to refer to concepts that aren’t that hard to understand when someone explains them in plain English. But a lot of the pros would rather make you feel confused and dependent on their services, rather than educating you. Time and again David takes complex or arcane-sounding terms and translates them into easy-to-understand football metaphors. This book will do more than educate you; it will empower you as an investor. For example, David has a great section on how to rigorously determine if a fund manager is any good that’s downright aggressive. Most wouldn’t dare to invade that territory. David has pioneered it, has mapped it, and knows who is out of bounds, who’s off the reservation. Can you assess a fund manager without him? I think not.

There’s a lot of great advice in here, but the reason you can’t afford not to read this book boils down to this: Smart asset allocation, which includes diversification (a necessity I address endlessly on my TV show Mad Money), is the single best way to avoid losing lots of money. Even if you think you have these concepts nailed down, believe me, there’s always more to learn, and David Darst, the man who taught me everything I know about the subject, is the man to teach you. Until this book, I thought that you had to work at Goldman for so many years, or at Morgan Stanley, where he’s the asset allocator himself, to get this sage’s advice. Not any more. He’s made the basics come alive, and with this book you can be sure that your chances of being a big-time client of David’s firm increase dramatically.

I am proud of my three-decade-long association with David, but even more proud to call this asset allocation icon my friend. Read this book, learn what he has to say, and you will be richer for it in more ways than having more money, as I have been since the day I met him as a young aspiring job-seeker at Goldman Sachs so many years ago. You’ve picked the right book. I wish he had written it 30 years ago, but it’s never too late for a new classic to appear on the financial literary scene.

—Jim Cramer

Columnist for The Street.com

Columnist for New York magazine

Host of CNBC’s Mad Money

Introduction

Just after we entered the New Millennium in 2000, I was asked to give investment advice to the 30-year-old founder and CEO of a high-flying dotcom company (from their ads, you would know the name, but it’s gone now!) and his 50-year-old accountant and Chief Financial Officer. The high-tech CEO refused to heed my pleadings to transform of his holdings into a diversified asset allocation plan, telling me, “My $2 billion net worth is going to become $10 billion, just you watch!”