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Book Review and Giveaway: The Intelligent Portfolio
The books keep rolling in! It’s getting challenging trying to keep up with the book reading/reporting between all my other duties. However, since the readers seem to enjoy them (or maybe it’s the giveaways), I will keep doing them!
This hardcover book is about investing, portfolio creation and risk management. It’s titled “The Intelligent Portfolio – Practical Wisdom on Personal Investing from Financial Engines” written by Christopher L. Jones. The book is fairly lengthy and technical, but the beauty lies in the summary at the end of each chapter.
Who is the Author?
According to the publisher:
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.
What Topics are Covered?
- 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 with proper forward-looking criteria
- Understanding how to realistically fund financial goals
- Investing tax-efficiently
Important Lessons
- The most important diversification is the split between stocks/bonds, then between domestic/international equity.
- Minimizing your investment expenses will result in a huge difference in portfolio value over the long term.
- Higher expected returns will have a higher risk associated with them. However, not all high risk investments come with higher expected returns.
- The most important factors in choosing a risk level are the tolerance for downside outcomes and the time horizon before the money is needed.
- Investing in individual stocks are an unnecessary gamble. Historically, investors do better with diversified instruments like ETF’s/index mutual funds.
Final Thoughts
I enjoyed this hardcover book as it provides a lot of insight into the value of diversified low cost index investing through facts and hard earned experience. I would say that this book is geared towards investors who are already familiar with the markets but looking to expand their market knowledge.
For the beginner investor, this book may be a little intimidating and a touch on the dry side as it is fairly technical. However, I would say that this book would provide the right start on how to create a diversified portfolio at a risk level that is right for you.
Want a Free Copy?
- Simply leave a comment and you’ll automatically be entered in the draw for a free copy.
- Please only 1 comment entry / person (please enter a valid email address).
- Only those with a North American mailing address may enter (publisher rules, sorry).
- Contest will end Thursday 5pm EST June 12, 2008 and the winner announced shortly afterwards!
Find out how you can save an additional 4% on this book from Chapters.
88 Comments, Comment or Ping
1. Farhan Thawar
Looks interesting, however I’d rather read a book that also spoke of the Canadian market.
Jun 10th, 2008 @ 8:50 am
2. Doug Weber
Interesting review. I would love a free copy and I do have a N. American address! Let me know if you select me and Thanks for keeping up with the reading and posting the information!
Jun 10th, 2008 @ 9:26 am
3. Joshua
Sign me up for the big W! This book looks like a very fascinating read!
Jun 10th, 2008 @ 9:39 am
4. Pierre-Hugues
I was just looking for some more advice on how to start creating a portfolio. Looks like an interesting read.
Jun 10th, 2008 @ 9:49 am
5. Aaron
Excellent. I love these contests! Thanks again FrugalTrader.
Jun 10th, 2008 @ 9:57 am
6. Laura
Sounds like a great book!
Jun 10th, 2008 @ 9:58 am
7. chris
sign me up.
Jun 10th, 2008 @ 10:16 am
8. Telly
I like winning!
Jun 10th, 2008 @ 10:31 am
9. Joe
Thanks for the contest! Sign me up.
Jun 10th, 2008 @ 10:43 am
10. Finance_Addict
Here is my post.
Jun 10th, 2008 @ 10:44 am
11. Judy
Sounds like a great read – Tks Judy
Jun 10th, 2008 @ 11:03 am
12. David
A book about the strength of index investing, that sounds very good!
Jun 10th, 2008 @ 11:03 am
13. Bob
Sounds like an interesting read.
Jun 10th, 2008 @ 11:03 am
14. Dividend Growth Investor
Pick me, pick me :-)
Jun 10th, 2008 @ 11:05 am
15. Greg
Always want to learn more! Sign me up for the draw!
Jun 10th, 2008 @ 11:11 am
16. Millionaireby45
Sounds like a great book. You can never have too much knowledge especially when it comes to investing.
Jun 10th, 2008 @ 11:34 am
17. Christopher
sounds like it would be a fairly interesting read.
Jun 10th, 2008 @ 11:35 am
18. Luc
Sounds like a good read,
Jun 10th, 2008 @ 11:40 am
19. JME
I would love to win the book
Jun 10th, 2008 @ 11:40 am
20. ryan
i would like to see how this differs from the other investment books i have read.
Jun 10th, 2008 @ 11:44 am
21. Marianne O
Time for me to level up from beginner to high-beginner books, as we’re just setting up self-directed RRSPs. This sounds like a useful book at this point in our financial journey.
Thanks for the review.
Jun 10th, 2008 @ 11:53 am
22. Oscar
Thanks for the book..
Oscar
Jun 10th, 2008 @ 11:55 am
23. Chuck
Here’s my entry!
Jun 10th, 2008 @ 11:58 am
24. James
Seems like an interesting read. And the price is right!
Jun 10th, 2008 @ 11:59 am
25. MAC
thnaks for the book review. Hope to win it
MAC
Jun 10th, 2008 @ 12:01 pm
26. Andre
Sounds like an interesting read
Jun 10th, 2008 @ 12:03 pm
27. Blitzkrieg
I’m in.
Jun 10th, 2008 @ 12:05 pm
28. Mark
I like these investing books that have a mathematical basis to the theories.
Does it also show how to recognise when a higher risk investment won’t come with higher returns?
Jun 10th, 2008 @ 12:07 pm
29. Jim
Pick me for the free book! This could be a good read!
Jun 10th, 2008 @ 12:08 pm
30. Susie
Love to learn…and I must say that I really enjoy your site. I have learned a lot and like the simple easy format. I look forward to my read every day. Thank you, FG
Jun 10th, 2008 @ 12:21 pm
31. paulette
Nice book! Too bad for me im not qualified to join:(
Jun 10th, 2008 @ 12:26 pm
32. Commander T
I am interested in this book.
Jun 10th, 2008 @ 12:27 pm
33. Yuriy
Please, count me in. I would love to read something serious on the topic.
Jun 10th, 2008 @ 12:35 pm
34. Jane
An intelligent portfolio? Count me in for the drawing!
Jun 10th, 2008 @ 12:46 pm
35. Terri
Thanks for the review! I hope you pick me! :)
Jun 10th, 2008 @ 1:12 pm
36. Daniel
Would saying that it’s my birthday tomorrow help me win? Did not think so. :-)
Jun 10th, 2008 @ 1:20 pm
37. FearLES
Thanxs for the review. Good luck to everyone.
Jun 10th, 2008 @ 1:22 pm
38. Michael Gillard
Looks good. Mine could certainly use some sprucing up!
Jun 10th, 2008 @ 1:24 pm
39. ETF Income
I am in, thanks.
Jun 10th, 2008 @ 1:27 pm
40. Sean
I’m feeling lucky!
Jun 10th, 2008 @ 1:27 pm
41. talcumboy
Sign me up :).
Jun 10th, 2008 @ 1:33 pm
42. Isabelle
This book sounds like what I need.
Jun 10th, 2008 @ 1:35 pm
43. Jeremy
Book? I’d love it!
Jun 10th, 2008 @ 1:38 pm
44. Stephen Winters
Another very interesting book read from a very interesting site.
When are you going to be writing your own book FT?
Jun 10th, 2008 @ 2:03 pm
45. Doug
I would love a free copy, thanks for the chance…
Jun 10th, 2008 @ 2:03 pm
46. Returns Reaper
Sounds like a good book. I like the sounds of a book with a heavier technical weighting. Often I find books tend to shy away from the technical side of things to appeal to a larger audience. This makes it hard to find good material if you are interested in those details.
Sign me up for the draw, please!
Jun 10th, 2008 @ 2:05 pm
47. Nick
Sounds like an interesting read; especially about choosing ETFs over individual stocks.
Jun 10th, 2008 @ 2:18 pm
48. Jordan Clark
Frugal,
Has this book on portfolio creation changed any of your views on using a couch potato style portfolio?
Please put me in for the draw.
Jordan
Jun 10th, 2008 @ 2:31 pm
49. pablo9567
If you own stocks then you can’t afford to get news later than everyone else. Try easystockalerts.com for a week and you’ll see what I mean. There is no fee and no spam…so make money now and sign up for easystockalerts.com
Jun 10th, 2008 @ 2:32 pm
50. tom
Hope foreign markets are sufficiently addressed!
Jun 10th, 2008 @ 2:41 pm
51. Ringo
The contents of the book seem so interesting so it would be great if I can have a chance to read it through.
Jun 10th, 2008 @ 2:55 pm
52. Kassam
I’m in!
Jun 10th, 2008 @ 3:09 pm
53. gS49
I’ll take it!
Jun 10th, 2008 @ 3:15 pm
54. Jesus
Count me in!!
Jun 10th, 2008 @ 3:17 pm
55. Alex Muchortow
Sounds like a good refresher to keep my investing on track
Jun 10th, 2008 @ 4:09 pm
56. Nate
Entering the contest.
Jun 10th, 2008 @ 4:31 pm
57. supersocco
I am going to be a DIY investor, so this is right up my alley
Jun 10th, 2008 @ 5:01 pm
58. Andrew
Sounds like an interesting book. Please put me in for the draw.
Jun 10th, 2008 @ 5:12 pm
59. Rob
Im in!
Jun 10th, 2008 @ 5:40 pm
60. Kevin
I’m always interest in info on ETFs
Jun 10th, 2008 @ 6:13 pm
61. Chris
The book sounds great. Sign me up!
Jun 10th, 2008 @ 6:35 pm
62. Kenny
Sounds interesting…
Jun 10th, 2008 @ 7:18 pm
63. newinvestor
Sign me up please
Jun 10th, 2008 @ 7:44 pm
64. Elvis K
Elvis is in the building lol.
Sign me up!
Jun 10th, 2008 @ 7:58 pm
65. Patrick
I’d be interested to see how they reconcile the every-percentage-point-counts philosophy with the advice to diversify between stocks and bonds. If you’re not using your savings for a decade or two, what good are bonds?
Jun 10th, 2008 @ 8:10 pm
66. Cash Canuck
Wow! Everyone loves a giveaway. Including me!
I like books that aren’t afraid to throw some technical information at you. When I have a methodology to chew on, I can apply the writers’ systems to my own list of investments and see how closely I fit in.
The whole idea about asset allocation, and ETF index investing seems like it fits in well with the popular investing mantra of the day (at least in the PF blogosphere), so it would be interesting what new material is brought to the table with this publication.
Cheers!
Jun 10th, 2008 @ 9:24 pm
67. cashinstinct
I am interested by this book!
Thanks for giving it to one of your reader.
Jun 10th, 2008 @ 9:31 pm
68. AndrewP
I’d love to read THIS book!
Jun 10th, 2008 @ 10:41 pm
69. Warren
Wish me luck.
Jun 10th, 2008 @ 11:13 pm
70. Jim
sign me up
Jun 10th, 2008 @ 11:39 pm
71. B
Looks interesting… especially for the individual investor.
Jun 10th, 2008 @ 11:40 pm
72. Debt_Free_in_5
Count me in
Jun 11th, 2008 @ 12:03 am
73. john sanderson
First post here, although I’ve been reading with interest since the first of the year.
Thanks for all your postings and efforts, you remind me of myself a few years ago – you’re on the right track in many respects, in my opinion.
We’re always reading and learning, so a chance to have a new book in the library would be great. I’m interested in the ETF vs individual stock comparison.
Keep up the good work.
John in Kitchener
Jun 11th, 2008 @ 12:30 am
74. coolbeans99
I am in for the win!
Jun 11th, 2008 @ 12:51 am
75. spy vs. spy
What do we know about author’s, Christopher L. Jones’, investing track record? Is he just a book worm?
Jun 11th, 2008 @ 1:11 am
76. Sarlock
Sounds like a good read, I’ll toss my name in the hat.
Jun 11th, 2008 @ 1:16 am
77. Chris Chen
This book sound very interesting. Put me down for one :)
Jun 11th, 2008 @ 3:35 am
78. Ken
Count me in!
Jun 11th, 2008 @ 4:45 am
79. telefantastik
i’m in! thx
Jun 11th, 2008 @ 11:47 am
80. Denny
Please include me in the draw!
Thanks kindly!
Jun 11th, 2008 @ 3:50 pm
81. RI
Sign me up! Is there any discussion of asset allocation?
Jun 11th, 2008 @ 6:43 pm
82. Quick Lunar Cop
Please count me in! I haven’t read this one yet!
Jun 12th, 2008 @ 9:40 am
83. Colleen
I appreciate your effort on this blog. Love it!
Jun 12th, 2008 @ 9:52 am
84. Matt V
I’m in! Great site…
Jun 12th, 2008 @ 11:34 am
85. Kyle
I have never heard of Christopher Jones, but put his name next to Will Sharpe and I’m sold! Beginner investment books are a dime a dozen these days, but a solid guide for advanced investors is rare. I look forward to reading it.
Jun 12th, 2008 @ 12:43 pm
86. Stephen Oakes
The best thing you can do as an investor is to read as many books out there like this one. It’s important to learn what your investment style is.
Once you learn and understand the basics, draft up a strategy and test it. If it’s successful, use it as your base and continue to tweak, perfect, or create new strategies that could provide higher returns at a reduced risk level.
But more importantly, use a stop-loss you’re comfortable with to protect you in the event unforseen market forces go against your position.
These are general tips I realize, but very crucial in building an investment foundation with which you can fill the gaps and learn how make money.
-S
Jun 12th, 2008 @ 3:44 pm
87. Todd
count me in too!
Jun 12th, 2008 @ 5:13 pm
88. Matt T
Looks like a good one, love to read!
Jun 12th, 2008 @ 7:06 pm
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