Is there an ideal portfolio of investment assets, one that perfectly balances risk and reward? In Pursuit of the Perfect Portfolio examines this question by profiling and interviewing ten of the most prominent figures in the finance world鈥擩ack Bogle, Charley Ellis, Gene Fama, Marty Leibowitz, Harry Markowitz, Bob Merton, Myron Scholes, Bill Sharpe, Bob Shiller, and Jeremy Siegel. We learn about the personal and intellectual journeys of these luminaries鈥攚hich include six Nobel Laureates and a trailblazer in mutual funds鈥攁nd their most innovative contributions. In the process, we come to understand how the science of modern investing came to be. Each of these finance greats discusses their idea of a perfect portfolio, offering invaluable insights to today鈥檚 investors.
Inspiring such monikers as the Bond Guru, Wall Street鈥檚 Wisest Man, and the Wizard of Wharton, these pioneers of investment management provide candid perspectives, both expected and surprising, on a vast array of investment topics鈥攅ffective diversification, passive versus active investment, security selection and market timing, foreign versus domestic investments, derivative securities, nontraditional assets, irrational investing, and so much more. While the perfect portfolio is ultimately a moving target based on individual age and stage in life, market conditions, and short- and long-term goals, the fundamental principles for success remain constant.
Aimed at novice and professional investors alike, In Pursuit of the Perfect Portfolio is a compendium of financial wisdom that no market enthusiast will want to be without.
Awards and Recognition
- Winner of the Silver Medal in Personal Finance / Retirement Planning / Investing, Axiom Business Book Awards
- One of Morningstar's Recommended Books of the Year
Andrew W. Lo is the Charles E. and Susan T. Harris Professor at the MIT Sloan School of Management, director of the MIT Laboratory for Financial Engineering, a principal investigator at the MIT Computer Science and Artificial Intelligence Laboratory, and an external faculty member at the Santa Fe Institute. His many books include Adaptive Markets and Hedge Funds (both Princeton). Twitter @AndrewWLo Stephen R. Foerster is professor of finance at Ivey Business School, Western University. He is the author of Financial Management: Concepts and Applications and Financial Management: A Primer. Twitter @ProfSFoerster
"What if you could get inside the minds of some of the greatest investors in history? It would be nice if you had a window straight into their heads, but in reality it would take years of hard work to learn to think the way they do. . . . Or, you could simply read. . . . In Pursuit of the Perfect Portfolio. "鈥擬ark Reeth, Business Insider
"A good look at the development of portfolio theory, starting with Markowitz."鈥擳yler Cowen, Marginal Revolution
"An accessible and heady chronicle of how we build portfolios, how that鈥檚 changed, and why we鈥檝e done it the way we鈥檝e done it over time. How did investors come to coalesce around the 60/40 portfolio allocation, and what role do alternatives play in asset allocation? This readable book takes on those questions and many more"鈥擩eff Ptak, Morningstar
鈥淭his is a delightfully written account of the finance pioneers who have shaped our understanding of how to build optimal investment portfolios. Masterfully illuminating the lives and wisdom of Nobel Laureates and important investment professionals, In Pursuit of the Perfect Portfolio offers provocative insights for academics and practitioners.鈥濃�擝urton G. Malkiel, author of A Random Walk Down Wall Street
鈥淭hroughout recorded history, people have looked to safeguard their future through the stewardship of their assets. This wonderful book describes how, in the twentieth century, a group of scholars and practitioners developed systematic approaches to this endeavor. By exploring the differences between these pioneers, In Pursuit of the Perfect Portfolio puts forth a framework that enables each of us to reflect on our own investment portfolios.鈥濃�擠iane Coyle, University of Cambridge
鈥淓ver wonder if there is a better way to invest? In Pursuit of the Perfect Portfolio does a marvelous job setting out answers by taking readers through the evolution of modern investment management. Combining interesting anecdotes with fulsome explanations, the authors provide a road map for how portfolio selection has developed. Accessible to new and experienced investors, this book makes clear that the search for the perfect portfolio is an engaging and never-ending quest.鈥濃�擬aureen O鈥橦ara, former president of the American Finance Association
鈥淟o and Foerster tell the stories of ten innovators that helped to produce a revolution in the investing field these past fifty years. The authors delve into the personal histories of these individuals and explain how their innovations have improved investment experiences for millions of investors, big and small. This entertaining book gives a great overview of the development of modern finance.鈥濃�擠avid G. Booth, chairman of Dimensional Fund Advisors
鈥淟o and Foerster construct a 鈥榩erfect portfolio鈥� of intimate biographies and divergent yet complementary ideas that will inform today鈥檚 most thoughtful investors. Not only does this book help individuals determine what approach would best suit them, it also offers institutions a tantalizing blueprint for better personalized investment solutions.鈥濃�擯eter Hancock, former president and CEO of AIG and former CFO of J. P. Morgan
鈥淟o and Foerster have produced an essential book on investing. Everyone should read In Pursuit of the Perfect Portfolio to find out what featured Nobel Laureates and investment thought leaders have to say about choosing the right portfolio mix. The authors do a splendid job of explaining in nontechnical language the similarities and differences in approach among those profiled.鈥濃�擹vi Bodie, coauthor of Investments
鈥淭his highly rewarding book walks us through the foundations of modern portfolio theory and incorporates the powerful insights of the practitioners who helped make it all happen. A perfect read!鈥濃�擝en Golub, chief risk officer of BlackRock
