Eighteen years ago I read a book (Investment Psychology Explained) that proved invaluable to me, not because it told me how to invest, but because it taught me how to think about investing.
Fast forward to 2012 and The Indomitable Investor has eclipsed the previously mentioned title.
Managing investments is about managing risk. Author Steve Sears provides an insight into how some of the brightest investment managers and advisors of our time go about the process of risk management.
In addition Mr. Sears takes a thoughtful look at volatility indexes and what to make of them, the pitfalls of Modern Portfolio Theory, behavioral psychology as applied to investing and a fantastic discussion on the “challenges” of regulation and why such efforts nearly always fall short of intentions.
An added bonus was a brief update on the whereabouts of Victor Neiderhoffer.
My biggest critique of the book would be that the author covers so much ground that there are a number of topics that only get a brief mention where they would provide ample ground for further reflection.
In the spirit of “Give a man a fish, feed him for a day, teach him how to fish feed him for a lifetime;” The Indomitable Investor is an invaluable piece of teaching that will provide knowledge and wisdom for a life time of investing.
DISCLAIMER: Nothing in this article should be construed as a personal recommendation or investment advice. Nor should anything in this article be construed as an offer, or a solicitation of an offer, to sell or buy any particular investment security. Investors should conduct their own due diligence and seek the advice of a financial and/or investment professional before making any investment decisions.