The Intelligent Asset Allocator
by William Bernstein · first published 2000
77% recommend23% neutral
Why HN recommends it
Explains modern portfolio theory and asset allocation in practical terms: balancing asset classes to match risk tolerance, and why beta, fees, and taxes matter more than alpha. Suited to individual investors.
Summarised by Claude from recommending comments
second edition
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Mentions per year
What Hacker News says
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…https://www.investopedia.com/managing-wealth/modern-portfoli... * https://en.wikipedia.org/wiki/Modern_portfolio_theory For good layman treatments on the subject I recommend the works of William J. Bernstein, The Intelligent Asset Allocator, The Four Pillars of Investing, and Rational Expectations: * https://en.wikipedia.org/wiki/William_J._Bernstein Recent interviews: * https://rationalreminder.ca/podcast/108 (podcast) * https://www.youtube.com/watch?v=haLGx8KlFvk…
on “Ask HN: I have $450K cash, what should I do to maximize my return?” ↗…go in the absence of something which allows you to escape the financial gravity of the efficient market. A Random Walk on Wall Street by Burton Malkiel covers efficient market theory thoroughly. The Intelligent Asset Allocator by William Bernstein for approaches to constructing long-term portfolios. Lots more to say on this issue, but hopefully some of these starting points will get you thinking.
on “Ask HN: How did you learn about stock market/trading investing ?” ↗My favorite book on investing is The Intelligent Asset Allocator by William Bernstein. This is what made me aware of issues in correlations. I still believe in diversification. If an ETF is sufficiently diverse I will buy the ETF. Some ETFs are not - XLE is nearly…
on “Reddit's Stock Threads Become a Must-Read on Wall Street” ↗Recommended reading: The Intelligent Asset Allocator (Bernstein). My implementation of an asset allocation strategy includes a well-constructed bond portfolio using primarily individual bonds. see www.marylandcapitaladvisors.com, for example.
on “Ask HN: Steady 4-5% on $5 million?” ↗If you want to forget about market timing, concentrate on asset allocation: The Smartest Investment Book You'll Ever Read (Canadian audience) The Intelligent Asset Allocator (a more statistical approach)
on “Ask HN: What are good investing books for total beginners?” ↗Do some reading: Intelligent Asset Allocator by William Bernstein[1] The book is actually a quick read even if you're not a math whiz (which I'll assume you are). It goes through a review of how to allocate your money across a number of investments…
on “Ask HN: Any good investments for those saving a substantial portion of income?” ↗Great list. Another book I've found helpful is "The Intelligent Asset Allocator" [0]. The concepts on modern portfolio theory it discusses seem to jive with Matt's article. Basically, when investing for the long term, focus more on balancing the asset classes in accordance with your…
on “Hard-won lessons about money and investing” ↗I found William Bernstein's books to be a great intro to index investing. "The four pillars of investing" "The intelligent asset allocator" - more technical The Boglehead wiki is also fantastic.
on “Wealthfront: Silicon Valley Tech at Wall Street Prices” ↗I would recommend the book 'The Intelligent Asset Allocator' by William Bernstein, if you happen to find yourself in the position of worrying about what to do with excess funds.
on “Ask HN: If you make more than $200k, how do you manage your money?” ↗I just read about the Rule of 72 in a book titled The Intelligent Asset Allocator: How to Build Your Portfolio to Maximize Returns and Minimize Risk by William Bernstein. It is a good book, I recommend it.
on “The Rule of 72 (2007)” ↗This is where I started: https://www.amazon.com/Intelligent-Asset-Allocator-Portfolio... It should resonate with the HN crowd as it starts from the basics and builds up a strategy. Very understandable. It then uses that to help you build an overall investment strategy. Bernstein…
on “Ask HN: What things have richly rewarded the time invested in mastering them?” ↗William Bernstein's books, e.g. "The Intelligent Asset Allocator," makes a similar point about chasing beta instead of alpha. Beside that, on top of minimizing tax burden, he also emphasizes minimizing fees that fund managers charge.
on “Three Investing Patterns That You Should Know” ↗By William Bernstein, author of "The Intelligent Asset Allocator" and other books on index investing. Mobi: https://dl.dropboxusercontent.com/u/29031758/if_you_can_v1.m... Kindle: https://dl.dropboxusercontent.com/u/29031758/If%20You%20Can_...
on “If You Can: How Millennials Can Get Rich Slowly [pdf]” ↗…lower risk, than large U.S. stocks alone (represented by the S&P 500 index). The S&P 500, in turn, performed better than 75% of professional money managers over the same period." (c) W.J. Bernstein, The Intelligent Asset Allocator, based on a study by T. Rowe Price, from 1973 to 1992. The gold was used as a replacement, because I'm not from US, and it worked well for Russia, giving average yearly 48,9% compared to 24,4%, 31,5%,…
on “Ask HN: Best passive income method for a solo developer?” ↗…return than one with even 5 or 10% fixed income. Anyways, the book was by a guy named William Bernstein, and his (very dated looking) site is at http://www.efficientfrontier.com/. His book is called the Intelligent Asset Allocator. The first 2 chapters are on the author's site. The book can be ordered from Amazon at: https://www.amazon.com/product-reviews/0071362363/ref=cm_cr_...
on “Ask HN: What's the best investment strategy for a highly volatile market?” ↗