Figuring It Out - by Charles D Ellis (Hardcover)

About the Book

"One of the great joys of a professional life, as physicist Richard Feynman once explained, is the joy of "figuring it out." Of course, figuring out investing questions is not as important and certainly not as enduring as figuring out the basic laws of physics, but it certainly is, has been, and likely will be as fascinating--and more fun for readers concerned about our investments. (Hint: that means all of us.) Readers leafing through Charley Ellis' masterworks will enjoy being reminded of some of the great controversies that animated the world of professional investing over the past sixty years from a keen observer in the investment profession. In short, Ellis lived through those controversies and played his part in figuring them out, observing the remarkable minds that solve the most vexing questions in investments. When Ellis left Harvard Business School with an MBA and headed to Wall Street and a happy career in investing, HBS offered no courses in investing, there were no CFAs, and almost nobody was interested in the stock or bond markets. At that time, worldwide employment in the securities and investment fields was less than 5,000. Half a century later, employment was well over 500,000 and HBS offered three dozen courses on all sorts of investing, and almost everyone seemed interested in the securities markets. At least as important, the average talent of the men and women in engaged in all aspects of investing had steadily increased to make the field known today for having many of the most talented, best informed, hardest working, and best paid people in the world. Belief in bonds as the way to damp down changes in the stock market continues among investors and their advisers. This will likely continue. The "opportunity cost" of owning bonds vs. owning stocks is hard to compare to the "anxiety cost" of being exposed to stock market fluctuations. Canards like "Invest your age in bonds" are easy to remember and somehow sound like experience-based wisdom. But Ellis encourages investors to view their securities portfolios correctly as only one component of their Total Financial Portfolio which, for most of us, has large stable value components like our homes, the net present value of our future incomes or savings and our Social Security benefits. Figuring It Out, like eyewitness reports from the field, tell Ellis' unique story of learning about important aspects of investing. Learning as you invest is exactly what make an investor even more savvy and disciplined"--

Book Synopsis

An indispensable collection of essays from one of the investment world's leading lights

In Figuring It Out: Answers to the Most Difficult Investment Questions, world-renowned investing and finance guru Charles D. Ellis delivers a robust collection of incisive essays on an array of perennial and contemporary investing issues, from the rise and fall of performance investing to a compilation of essential investing guidelines.

In the book, you'll also find eye-opening discussions of:

• Whether bonds are an appropriate investment vehicle for long-term investors
• The costs of excessive liquidity in the typical portfolio
• The characteristics of successful investment firms, and how to spot them

A can't-miss resource for the everyday retail investor, author Charles Ellis draws on a lifetime of distinguished client service in the financial markets to reward readers with common-sense and accessible advice that deserves to be followed by anyone with an interest in maximizing their investment returns over the long haul.

From the Back Cover

PRAISE FOR FIGURING IT OUT

"It might seem odd to describe the courtly and charming Charley Ellis as a revolutionary, and yet he is. As you'll discover in this brilliant collection of essays, not only did he recognize far earlier than most that investing is a loser's game, but he also set out to take that next important step--figuring out what investors can do to improve their odds of financial success. Want a more comfortable financial future? You'll find crucial answers in Charley's lifetime of wise words."

--JONATHAN CLEMENTS, editor of HumbleDollar.com and former personal finance columnist for The Wall Street Journal

"Charley Ellis has had a front row seat to the evolution of the investment management industry for over a half century. In working alongside the greats, Charley has 'figured out' that winning in investment management is really, really hard. This compilation of some of his finest work over the years offers anecdotes and data supporting his deepest held beliefs: focus on goals, get the big picture right, and let the power of indexing take care of the rest."

--TED SEIDES, CFA, Founder, Capital Allocators, LLC

"The financial markets have changed dramatically over the past half century, yet our beliefs about what it takes to be a successful investor have not. Financial sage Charley Ellis has spent 60 years Figuring it Out while working with and teaching the best investors in the business. You too can become a better investor with this wonderful collection of brilliant, groundbreaking, and invaluable insights from one of the great financial minds of our era."

--CONSUELO MACK, Anchor and Executive Producer, Consuelo Mack WealthTrack

About the Author

CHARLES D. ELLIS is one of the leading contributors to the investment profession. He has chaired the CFA Institute, served as a Director of Vanguard and on over a dozen investment committees, including many years on the Yale Investment Committee. He has taught advanced investment courses at both Harvard Business School and Yale School of Management. This is his 19th book.