Investment Titans: Investment Insights from the Minds That Move Wall Street

by Jonathan Burton

Book Overview

Investment Titans assembles an unprecedented panel of Nobel laureates and great financial thinkers---including Harry Markowitz, Paul Samuelson, John Bogle, and others---to ask: How can investors make... This description may be from another edition of this product.

• Format: Hardcover
• Language: English
• ISBN: 0071354964
• ISBN13: 9780071354967
• Release Date: November 2000
• Publisher: McGraw-Hill
• Length: 278 Pages
• Weight: 1.38 lbs.
• Dimensions: 1.1" x 6.3" x 9.3"

Customer Reviews

Insightful!

Jonathan Burton relays the advice of nine top investors - Harry Markowitz, Paul Samuelson, Jeremy Siegel, John C. Bogle, Joseph Lakonishok, Richard Thaler, Gary Brinston, Peter Bernstein and William Sharpe. The author focuses on different aspects of investing - stock-market risk and reward, indexing, value versus growth investing, investor psychology, international investor strategies and risk tolerance. Burton concludes Investment Titans with observations about common themes - diversifying, investing now and staying invested. This solid book avoids repetition by focusing on different investment issues for different investors. We [...] won't give you stock tips, but we do offer book tips - this is a recommended buy for all readers interested in investment strategies.

Book Review

From Investments Titans, I have learned that the most important thing an investor should try to do is to minimize his/her risk. To minimizing his/her risk in the market is to have a diversified portfolio. The portfolio risk decreases as the number of different types of stock increases. But how many much diversification is enough? If an investor is trying to reduce the volatility of his/her portfolio as a whole, then he/she need more than one type of stock. But an investor also needs to have stocks that do not go up and down together. It makes perfect sense to own more different types of stock to reduce an individual's risk in an up and down market. A famous 1970 study by Lawrence Fisher and James Lorie showed that risk declines as stocks are added to a portfolio. But the research noticed that once the portfolio holds more that 20 stocks, adding more stocks will have a minimal effect on risk. The point here is to have a diversified portfolio but not to go overboard. In my opinion, having five to eight different types of stocks is being diversified enough. Yet, many analysts say owing between 12 to 20 is ideal for a portfolio. It makes perfect sense that investors will seek the highest return for the least amount of risk. You should take in count that diversification eliminates some risk, but not all. But one thing that this book does not mention is besides having a diversified portfolio, it is also important to focus on well-managed companies that have a strong franchise (brand name). I think it is very important that an investor does not pick stock that has poor management team. An investor should try to invest in a business that he/she understands well and companies that generate lots of cash and competitive characteristics. When he/she buys a stock at what you think appears to be an attractive discounted price, he/she will benefit from the future increase in value generated by owing all or part of a business that is well established. The one thing that I like about Jonathan Burton is that he makes the most important factor in investing very clear. He makes risk in the stock market very straightforward. It is not all about looking at data and number all the time. It is about looking at how much risk an investor is at when he/she is buying or selling a stock. Another thing that I like about this book is that it does not give only his opinion on investing but many others as well. You do not only get one opinion but you get many opinions. So you are not narrow-minded and set only one direction. Over all, the book is a great guide for new investors like me. I would recommend new investor to read this book but would not recommend investor to invest after reading the book because I have learned that you can not understand the stock market by just reading book but you also need to have experience as well.

Book Review

Investments Titans By: Jonathan BurtonThe first chapter goes through the important knowledge of investing in the stock market. The most important thing an investor should try to do is to minimize his/her risk. To minimizing his/her risk in the market is to have a diversified portfolio. The portfolio risk decreases as the number of different types of stock increases. But how many much diversification is enough? If an investor is trying to reduce the volatility of his/her portfolio as a whole, then he/she need more than one type of stock. But an investor also needs to have stocks that don't go up and down together. It makes perfect sense to own more different types of stock to reduce an individual's risk in an up and down market. A famous 1970 study by Lawrence Fisher and James Lorie showed that risk declines as stocks are added to a portfolio. But the research noticed that once the portfolio holds more that 20 stocks, adding more stocks will have a minimal effect on risk. The point here is to have a diversified portfolio but not to go overboard. In my opinion, having five to eight different types of stocks is being diversified enough. Yet, many analysts say owing between 12 to 20 is ideal for a portfolio. It makes perfect sense that investors will seek the highest return for the least amount of risk. You should take in count that diversification eliminates some risk, but not all. Besides having a diversified portfolio, it is also important to focus on well-managed companies that have a strong franchise (brand name). An investor should try to invest in a business that he/she understands well and companies that generate lots of cash and competitive characteristics. When he/she buys a stock at what you think appears to be an attractive discounted price, he/she will benefit from the future increase in value generated by owing all or part of a business that is well established.

Burton is a Five-Star Writer

I'm actually waiting for my book to arrive, but wanted to encourage would-be investors to purchase this book. Mr. Burton is a well-known financial writer for publications such as The New York Times and Bloomberg Financial and has a commanding knowledge of not only investment strategy, but leading-edge technologies that fuel global markets. His ability to atract top investors and convince them to reveal some of their strategies is a testament to his stature in the financial community. For someone whose portfolio has taken a major hit, this book purchase, based entirely on his authorship, was an easy decision to make.