Simple (but not easy) strategy for investment: free book

William Bernstein wrote in 2004 a 16 pages free PDF book about investment, suggesting a simple (but not easy) strategy to invest, that – thanks to modern investments vehicles – would outperform 90% of finance professionals in the long run. According to his calculations, a 15% saved every month from age 25 would make you a millionaire by the age of 65.

“Simple but not easy” means that this process is against the human nature and intuition. Similarly, getting in shape is simple (just eat right and exercise), but not easy.

5 reasons make the process difficult: spending too much, lack of understanding of finance,and financial history (e.g. markets always recover), human instinct adverse to long-term-risk, and inability to recognise “enemies” in the financial industry.

The paper explains how to tackle hurdles, suggesting some books:

Download PDF here    

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