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In 2006, I published Least Risk Investing – Avoiding Investing’s Most Common Pitfalls. While it never made the New York Time’s best-seller list (although, I did sell a few thousand copies), it did receive acclaim from one of my industry heroes and, perhaps most importantly, it served as a launching pad for my investment management firm (which, at the time, was called “Intellivest”).
In 2012, I published the 2nd edition of Least Risk Investing (LRI) and, in reviewing the original publication for updates, I was pleased to reaffirm that the core principles of LRI were as valid as ever.
Fast-forward to 2018, 12 years after the original publication, and its time for another update. This time, however, I’ve decided to re-publish the book on-line. The book is no longer as “revolutionary” as it was in 2006 – when the financial services industry was just beginning to embrace the core principles of what is now known as “Evidence-Based Investing” – but, as I note in the preface:
Whether your portfolio is worth $10,000 or $10,000,000; whether you’re retiring in 1 year or 30 years; whether you’re new to the game of investing or a seasoned do-it-yourselfer, the tenets outlined [in LRI] will serve you well for decades to come.
Twelve years ago, the tenets outlined in LRI were reasonably revolutionary ideas. Only a relative handful of firms were promoting “passive” (evidence-based) portfolios, and the industry was just beginning to wrap its arms around goals-based investment management. In addition, while the idea of passive, goals-based investing has snowballed during the past decade, the industry has yet to fully embrace the idea of “least risk” investing: attaining your goals with as little risk as possible and then, once you’ve arrived at your financial destination, decreasing your risk even further, if possible, to protect what you have. This is an especially important concept for affluent investors.
During the upcoming weeks and months, I’ll be reviewing, re-writing and updating LRI. As I complete each chapter, I’ll post it here. If your current portfolio isn’t “least risk,” and/or if it doesn’t employ “evidence-based” concepts (like tilting your portfolio toward value and small-cap stocks), I urge you to read a chapter or two.
2. So You Think You Can Dance?
3. Investment Pornography
4. So What?
5. Bits & Pieces
6. Finding a Needle in a Haystack
7. Worst Best Practices
8. The Right Answer