Books
 
 

These books were used in the development of the investment strategies of Index Funds Advisors. The first book summarizes what is found in most of the books below it. The lack of reading these books is at the heart of the failure of investors. Learn and enjoy!

Index Funds: The 12-Step Program for Active Investors by Mark Hebner (founder of ifa.com)

 
 Category One: Understanding the Secret World of Wall Street
   
 
This first category is about the misaligned incentives and lack of investment theory education of stock brokers.
 
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Robbing You Blind
       by Mark Dempsey
cover"Merrill Lynch's employees lied to clients"

Protecting Your Money from Wall Street's Hidden Costs and Half-Truths: Moneymaking Strategies for Today's Investor by Mark Dempsey. Once a high flyer at a major brokerage, he now says he succeeded only by cajoling clients into purchases that helped him meet sales goals" If the average investor only knew what really goes on behind the scenes with their money they'd think differently about having us manage it."

   
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American Sucker
       by David Denby
coverIn 2000, the bottom dropped out of David Denby's life when his wife announced she was leaving him. To make matters worse, it looked like he might lose their beloved apartment in the split. Determined to hold onto his home and seized by the "irrational exuberance" of the stock market, Denby joined the investment frenzy with a particular goal: to make $1 million in one year so he could buy out his wife's share of their home. Denby gathered courage from stock analysts, from the siren song of CNBC, and from tech gurus and lying CEOs at investment conferences. He befriended tech stars like ImClone founder Sam Waksal and Merrill Lynch analyst Henry Blodgett, both now disgraced in scandals. He plunged into a season of mania, swept forward on the currents of greed, hucksterism, and native American optimism that caught up so many in that era--with cataclysmic results. AMERICAN SUCKER is his account of those years of madness and then of recovered sanity, written with the rueful insight and bitter humor that only a wiser man could attain. What began as a money chase developed into an encounter with such eternal issues as envy, time, love, and death. With wit, warmth, and tough-minded candor, Denby explores not only his own motives and illusions, but the whole panoply of desire, greed, and willful blindness that consumed the nation.

 

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coverLicense to Steal
       by Timothy Harper (Editor)

The Secret World of Wall Street and the Systematic Plundering of the American Investor by Timothy Harper (Editor), Anonymous. Clients only make money, in all likelihood, if they buy good stocks and hold onto them for a long time. But the broker makes money only if his clients frequently buy and sell.
   
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coverBrokerage Fraud
       by Tracy Pride Stoneman, Douglas J. Schulz
   
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coverFortune Tellers
       by Howard Kurtz
Inside Wall Street's Game of Money, Media, and Manipulation by Howard Kurtz. A must-read account of the way stock prices are manipulated by information-hungry media outlets [and] no-account market analysts
   
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coverThe Fortune Sellers
       by William A. Sherden
   
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coverFooled by Randomness: The Hidden Role of Chance in the Markets and in Life, First Edition
       by Nassim Taleb, Nassim Nicholas Taleb
   
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coverWhere are the Customers' Yachts?
       by F. Schwed Jr.
It's amazing how well Schwed's book is holding up after 55 years. About the only thing that's changed on Wall Street is that computers have replaced pencils and graph paper. Otherwise, the basics are the same. The investor's need to believe somebody is matched by the stock broker's need to make a nice living. If one of them has to be disappointed, it's bound to be the former."-John Rothchild, Author, A Fool and His Money, Financial Columnist, Time magazine
   
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Does Your Broker Owe You Money?
cover       by Daniel R. Solin
According to attorney Dan Solin, there were 5,500 new claims filed with NASD against brokers in 2000. ( See his new book, "Does Your Broker Owe You Money?" About half win and about half of them get paid. And if you have an attorney, they typically take 33% to 40% of the award. Most attorneys won't take your case unless you have lost more than $100,000. The NASD and NYSE awarded $161 million to investors in 1998 for abuses like unsuitable investments, excessive trading, failure to supervise and

unauthorized trading.
Also see this recoverinvestment. and investor recovery.

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    Category Two: Nobel Laureates and Historical Perspective
 
 
These books were used in the development of the investment strategies of Index Funds Advisors. In most cases the book images are links to amazon.com, so that you may purchase them. Learn and enjoy!
 
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coverCapital Ideas
       by Peter L. Bernstein

The Improbable Origins of Modern Wall Street by Peter L. Bernstein. When the 1974 recession hit Wall Street, investment professionals desperately turned to academia to help regain the value of their clients' holdings. Bernstein shows how Wall Street finally embraced the advences wrought in academic seminars and technical journals tht ultimately transformed the art of investing.

   
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coverAgainst the Gods
       by Peter L. Bernstein
Peter Bernstein has written a comprehensive history of man's efforts to understand risk and probability, beginning with early gamblers in ancient Greece, continuing through the 17th-century French mathematicians Pascal and Fermat and up to modern chaos theory.

 

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coverThe Random Character of Stock Market Prices
       by Editor: Paul H. Cootner

" Cootner's classic has been an inspiration to a generation of financial economists and its publication in 1964 marked the beginnings of the field known as financial econometrics. It is high time that this collection of gems is reprinted" Professor Andrew Lo, Professor of Finance, Massachusetts Institute of Technology.
   
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coverExtraordinary Popular Delusions
       by Mackay & Templeton
We may think that the Great Crash of 1929, junk bonds of the '80s, and over-valued high-tech stocks of the '90s are peculiarly 20th century aberrations, but Mackay's classic--first published in 1841--shows that the madness and confusion of crowds knows no limits, and has no temporal bounds.
   
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coverHow the Really Smart Money Invests (VHS Video)
Society improves through academia, yet, sadly, many people make investment decisions based on the appeal of a slick marketing campaign or a well-produced television commercial. The key to successful investing is to harness the meaningful research conducted by the brightest minds in academia and develop a conviction driven relationship that helps to guide the investment process. VHS Video
   
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Commanding Heights
cover       by Daniel Yergin and Joseph Stanislaw
Three DVD Set: The history and impact of the new global economy are made clear and compelling. This three-part, six-hour documentary does an astonishingly thorough job of dissecting and explaining macroeconomics and their current political and social importance without ever causing a loss of consciousness for the viewer. The series makes good use of both large- and small-scale examples, and features interviews with several major world leaders. Review by - Ali Davis

   
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coverThe Wisdom of Crowds: Why the Many Are Smarter Than the Few and How Collective Wisdom Shapes Business, Economies, Societies and Nations
       by James Surowiecki
   
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Devil Take The Hindmost
cover       by Chancellor
From the tulip Colleges of the seventeenth century to the Internet investment clubs of the late twentieth century, speculation has established itself as the most demotic of economic activities. Although profoundly secular, speculation is not simply about greed. The essence of speculation remains a Utopian yearning for freedom and equality which counterbalances the drab rationalistic materialism of the modern economic system with its inevitable inequalities of wealth.
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    Category Three: Nuts and Bolts of Index Funds Investing
   
 
These books were used in the development of the investment strategies of Index Funds Advisors. In most cases the book images are links to amazon.com, so that you may purchase them. Learn and enjoy!
 
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coverInvestment Management : Portfolio Diversification, Risk, and Timing - Fact and Fiction (Wiley Finance)
       by Robert L. Hagin

After more than forty years of investment research and practice, financial expert Robert Hagin has seen firsthand how misconceptions about investing have adversely affected the well-being of countless people. He knows that both amateur and professional investors alike are susceptible to making costly investment mistakes-primarily due to widely accepted investing "myths."

   
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coverWinning the Loser's Game
       by Charles Ellis

A true financial classic, How to Win the Loser's Game over 55,000 copies sold in its previous two editions. Simple, straightforward, and concise, Ellis, one of today's most brilliant investment writers, provides timeless wisdom about the nature of investing.

 

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coverThe Unbeatable Market: Taking the Indexing Path to Financial Peace of Mind
       by Ron Ross
   
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coverIndex your Way to Investment Success
       by Good & Hermansen
A winning investment strategy for today's volatile markets. Long a secret guarded by financial insiders, index funds have become a favorite with individual investors of every level. Drawing on their years of experience managing institutional investments, Walter R. Good and Roy W. Hermansen give even novice investors the nuts-and-bolts know-how to boost returns and control risk.
   
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coverPrudent Investor's Guide to Beating Wall Street at Its Own Game
       by Bowen & Goldie

Shows individual investors how to achieve superior returns through state-of-the-art asset allocation strategies. The book explains how investors can use mutual funds to create a portfolio that achieves their financial goals and earn the maximum return for a given amount of risk.
   
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coverWinning Investment Strategy
       by Larry E. Swedroe
If you are an investment neophyte or an index fund guru, this book will expand your knowledge. The research is in and the results are unequivocal, indexing beats active management over time and by a significant amount. The only people who contest the evidence are active fund managers who don't want to lose their paying customers.
   
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coverA Mathematician Plays the Stock Market
       by John Allen Paulos

After poking holes in superinvestor Warren Buffet's fundamental notions and other sacred cows of Wall Street, Professor Paulos offers his own advice: Stick with index funds.
   
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coverA Random Walk Down Wall Street
       by Burton G. Malkiel
A "random walk"--in market terms--suggests that a "blindfolded monkey" (also see monkeydex.com) would have as much luck selecting a portfolio as a pro. But Burton Malkiel's classic investment book is anything but random. Since stock prices cannot be predicted in the short term, argues Malkiel, individual investors are better off buying and holding onto index funds than meddling with securities or actively managing mutual funds.
   
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coverIndex Mutual Funds
       by W. Scott Simon
Simon explains how the "indexing revolution" came about and contrasts index investing with selecting individual stocks or relying on the fortunes of any particular fund manager or investment "guru." He also provides nuts-and-bolts details on how index funds work, and he spells out their advantages--less risk, minimal cost, and less emotional stress.

   
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coverThe Index Fund Solution
       by Richard Evans
Experience conclusively shows that index fund buyers obtain results exceeding those of the typical fund managers. The book is divided into two parts: it first compares index and actively managed funds and discusses development of a relevant financial plan; its second explains how to create and monitor just such a portfolio in order to meet one's individual needs optimally
   
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coverIntelligent Asset Allocator
       by William Bernstein
Bernstein has become a guru to a peculiarly '90s group: well-educated people intent on investing well. This book clearly explains the principles of modern portfolio theory and why investors would be better off to invest in custom index funds, like those from Dimensional Fund Advisors. It is a must read for both institutional and individual invesotrs.
   
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coverAsset Allocation
       by Roger C. Gibson
Financial experts agree: Asset allocation is the key strategies for maintaining a consistent yet superior rate of investment return. Now, Roger Gibson's Asset Allocation - the bestselling reference book on this popular subject for a decade has been updated to keep pace with the latest developments and findings.
   
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coverWinning with Mutual Funds
       by Tweddell
With their enviable track record, low expenses, and moderate risk, index funds are poised to become the next big wave for investors. This book shows how anyone can climb on board--and make higher returns. It is the first book to provide the total index fund story--and why they beat most professionally managed funds on Wall Street.
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    Category Four: Interviews and Writings of the Experts
   
 
These books were used in the development of the investment strategies of Index Funds Advisors. In most cases the book images are links to amazon.com, so that you may purchase them. Learn and enjoy!
 
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coverThe Investor's Anthology, By Ellis & Vertin
This anthology brings together original writings from many of the biggest names in finance, including Warren Buffett, Barton Biggs, Benjamin Graham, John Templeton, and other luminaries who have helped shape the face of modern finance. Eternal wisdom about the financial markets, compiled by one of the most astute minds in the field. A must-read for the serious investor.--John C. Bogle, Chairman of The Vanguard Group

   
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coverInvestment Gurus, By Peter Tanous
At the heart of this book are Tanous's interviews with 18 top money managers and academics, including Mario Gabelli, William F. Sharpe, Peter Lynch, Laura J. Sloate, and Merton Miller. The book concludes with "Your Roadmap to Wealth," which summarizes the success factors common to each of the money managers interviewed and suggests ways to develop an "intelligent personal investment plan." - Howard Rothman

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