The Intelligent Portfolio
Practical Wisdom on Personal Investing from Financial Engines
Christopher L. Jones
The key to good investment decisions is making informed choices. And while you cannot predict the future, it is possible to create investment strategies that can maximize your chances of success. In The Intelligent Portfolio, author Christopher Jones shows you how this can be accomplished.
Written with the thoughtful investor in mind, The Intelligent Portfolio draws upon the extensive insights of Jones and Financial Engines -- a leading provider of investment advisory and management services founded by Nobel Prize-winning economist William F. Sharpe -- to reveal the time-tested institutional investing techniques that individuals can use to help improve their investment performance. Throughout these pages, Financial Engines' Chief Investment Officer, Christopher Jones, uses state-of-the-art simulation and optimization methods to demonstrate the often-surprising results of applying modern financial economics to personal investment decisions. By illustrating the realistic range of possible investment outcomes, Jones skillfully reveals how the decisions you make today can impact your financial future.
Challenging conventional wisdom that often leads both novice and experienced investors astray, The Intelligent Portfolio builds from basic intuition on how financial markets function to practical tips on evaluating investment trade-offs and real-world advice on selecting investments to better reach your goals.
Along the way, you'll be introduced to the proven principles -- a mix of common sense and counterintuitive concepts -- that will put you in a better position to succeed, including:
* Recognizing the link between risk and reward
* Leveraging the wisdom of the market
* Minimizing losses due to investment fees
* Avoiding the risks of stock picking
* Selecting funds using relevant forward-looking criteria
* Understanding how to realistically fund financial goals
* Interesting tax-efficiently
* And much more . . .
In addition to the information outlined throughout this book, you'll also receive a fee waiver for a one-year investment advisory account at Financial Engines.com <http://www.financialengines.com/> , so that you may apply what you've learned here to your own investment endeavors. Through simple explanations of powerful investment ideas and real-world examples that bring them to life, The Intelligent Portfolio reveals what you need to know when making personal investment decisions. With this book as your guide, you'll quickly discover how you can effectively implement the strategies that institutional investors have known for decades -- helping you achieve a brighter financial future.
Christopher L. Jones is Chief Investment Officer and Executive Vice President of Investment Management for Financial Engines. Working closely with founder William F. Sharpe, Jones built and led the team of experts in finance, economics, and mathematics that developed the financial methodology for Financial Engines' personalized investment advice and management services. Jones has led the investment management function at Financial Engines for more than a decade. He holds an MS in business technology, an MS in engineering-economic systems, and a BA in quantitative economics, all from Stanford University.
Financial Engines, Inc. is a leading provider of personalized investment advisory and management services to investors in workplace retirement plans. The company provides advisory services to more than 6.8 million employees, including workers at 109 Fortune 500 companies. In addition, Financial Engines manages more than $16 billion in defined contribution assets for individual employees as of year-end 2007. All advisory services are provided by Financial Engines Advisors L.L.C., an independent registered investment advisor and subsidiary of Financial Engines, Inc. Financial Engines does not receive compensation based on the investment it recommends.