Comments on: Stocking Stuffer Ideas For Christmas – Investing Made Simple Book

By: Carnival of Twenty Something Finances – Cats Love Money Edition | Foreigner's Finances

Mon, 09 Nov 2009 12:24:42 +0000

[...] Mike at Four Pillars takes a look at the book Investing Made Simple, in their post, Stocking Stuffer for Christmas Ideas – Investing Made Simple Book. [...]

By: Friday Linkfest: Savvy Shopping Edition

Friday Linkfest: Savvy Shopping Edition — Fri, 06 Nov 2009 11:02:29 +0000

[...] Stocking Stuffer Ideas for Christmas – Investing Made Simple Book – Four Pillars [...]

By: This and That: Who killed Nortel and more … | Canadian Capitalist

This and That: Who killed Nortel and more … | Canadian Capitalist — Fri, 06 Nov 2009 02:58:44 +0000

[...] Mike has a stocking stuffer idea for Christmas — Investing Made Simple book. [...]

By: Rob Bennett

Rob Bennett — Wed, 04 Nov 2009 10:26:41 +0000

I was under the impression passive investing made up only a small part of the entire market’s assets.

My guess is that you are confusing Indexing Investing with Passive Investing, Jordan.

Indexing is obtaining high diversification at low cost. Indexing was a wonderful innovation for the middle-class investor. Indexing is pure gold.

Passive Investing is failing to lower your stock allocation when prices reach insanely dangerous levels. Passive Investing has already caused the greatest loss of middle-class wealth in the history of the United States and threatens to bring on the second great depression in days to come. The idea that Passive Investing can work for the long-term investor is the biggest mistake ever made in the history of personal finance, in my assessment.

I recommend Valuation-Informed Indexing, a non-passive approach to indexing.

Rob

By: Jordan

Jordan — Tue, 03 Nov 2009 08:23:54 +0000

Hey Rob, would you mind elaborating on how conventional investment advise is the primary cause of today’s economic crisis? I was under the impression passive investing made up only a small part of the entire market’s assets. I’m curious to know more from your point of view if you can give a nice synopsis.

By: Rob Bennett

Rob Bennett — Mon, 02 Nov 2009 14:38:12 +0000

I am a fan of the Oblivious Investor blog. Mike is a smart guy, a fine writer, and he goes farther than most in trying to keep an open mind about flaws in the conventional investing advice (which is what he advances).

My personal (strongly held) view is that the conventional advice (Passive Investing) is flawed to the core and is the primary cause of today’s economic crisis. So I think that people using Mike’s book to learn the basics of investing are likely to suffer big financial losses as a result of doing so.

That said, if you have already decided that the conventional advice is for you, his guide is a good one.

We live in strange times!

Rob