What Wall Street Doesn't Want You to Know: How You Can Build Real Wealth Investing in Index Funds

FROM THE PUBLISHER

An eye-opening look into index funds and why Wall Street's "smart money" investors are leading the way.

This revolutionary new book provides readers with a clear understanding of the way financial markets really work. Highlighting Wall Street's deceptive advertising practices, the author claims the best interests of investors are not always considered and the dismal track record of many "active" stock managers are often hidden from investors' view. The costs of research, trading fees, and capital-gains taxes are such that few active managers are able to beat the market and those who do are unlikely to repeat their performances.

Swedroe lays out, step-by-step, the manner in which investors today can prudently build and customize their "passively" managed and index?related portfolios. Steps include: Developing a personally tailored investment profile reflecting one's ability and willingness to accept risk Building a globally diverse portfolio of "passive" asset class funds Determining the realistic size of the investment portfolio one needs for retirement?plus annual living expenses.

About the Author:
NewYork native Larry E. Swedroe is the author of The Only Guide to a Winning Investment Strategy You'll Ever Need. He lives in St. Louis, Missouri, where he is a principal in the firm Buckingham Asset Management. Swedroe has been praised by investment titan John C. Bogle and financial correspondent Jane Bryant Quinn for his leadership on Index fund investing.

FROM THE CRITICS

New York Times

If Mr. Wagner and Mr. Winnikoff get a little overheated andMr. Blitzer remains a little cold, Larry E. Swedroe gets it about right.

Publishers Weekly

Investment adviser Larry E. Swedroe (The Only Guide to a Winning Investment Strategy You'll Ever Need) wants individual investors to understand What Wall Street Doesn't Want You to Know: How You Can Build Real Wealth Investing in Index Funds. With clarity and conviction, he cuts through market mythology (principally that actively managed funds--even those managed by professionals--tend to beat market returns), and explains how to apply his fundamental Modern Portfolio Theory to "passively" manage investments and "deliver the greatest expected return for any given level of expected risk." Copyright 2000 Cahners Business Information.

WHAT PEOPLE ARE SAYING

John C. Bogle, Founder and former Chairman, The Vanguard Group
The diagnosis is right on the mark, and his essential prescription rely on portfolio construction, index funds, broad diversification, minimal costs and taxes, risk control, and time also comes close to the center of the target: The optimal accumulation of your financial wealth. — John C. Bogle

If you feel uncool, when you invest in index funds, read this. For serious, long-term money, on-the-market investing is the way to go. — (Jane Bryant Quinn, syndicated columnist and author of Making the Most of Your Money)

Eugene F. Fama, Robert R. McCormick Distinguished Service Professor of Finance, Graduate School of Business University of ChicagoLarry Swedroe's work continues to advance the practical application of the efficient market hypothesis. — Eugene F. Fama

Swedroe's book sets the benchmark for common sense investing. His straightforward approach (much to Wall Street's chagrin) gives any investor the necessary tools to establish a long-term investment plan and the know-how to build a simple and sophisticated portfolio. — (Bill Schultheis, author of The Coffeehouse Investor)

Weston J. Wellington, Vice President Dimensional Fund Advisors
The power of free markets to advance human welfare is not a new idea, but the scope of its application is only beginning to be appreciated...This book is an excellent guide to understanding the logic of free market thinking when applied to investing. — Weston J. Wellington

Don Keim, professor of finance, The Wharton School, University of Pennsylvania
For investors with a long-term investment perspective, Swedroe provides sound, common sense advice in a format that is clearly articulated and accessible to all. — Don Keim

Rex Sinquefeld, Chairman and Chief Investment Officer, Dimensional Fund Advisors
wedroe understands the issues individual investors should focus on as they make their investment plans for the future. — Rex Sinquefeld

Ken French, Nanyang Technological University (NTU) Professor of Finance at MIT's Sloan School of ManagementThe individual investor will benefit greatly from the advice and direction that Swedroe offers. — Ken French