Book Review – ‘The Index Revolution: Why Investors Should Join It Now’

Book Review – ‘The Index Revolution: Why Investors Should Join It Now’

Two of my favourite investment commentators, Charles D. Ellis (Author) and Burton G. Malkiel (Foreword), add yet more weight to Wealthflow’s long-held belief that the academic evidence-based approach to investing creates a more worthwhile portfolio.

Book RecommendationThe Index Revolution argues that active investing is a loser’s game, and that a passive approach is more profitable in today’s market. By adjusting your portfolio asset weights to match a performance index, you consistently earn higher rates of returns and come out on top in the long run. This book explains why, and describes how individual investors can take advantage of indexing to make their portfolio stronger and more profitable. By indexing investment operations at a very low cost, and trusting that active professionals have set securities prices as correctly as possible, you will achieve better long-term results than those who look down on passive approaches while following outdated advice that no longer works.

“Beating the market” is much harder than it used to be, and investors who continue to approach the market with that mindset populate the rolls of market losers time and time again. This book explains why indexing is the preferred approach in the current investment climate, and destroys the popular perception of passive investing as a weak market strategy.

• Structure your portfolio to perform better over the long term
• Trust in the pricing and earn higher rates of return
• Learn why a passive approach is more consistent and worthwhile
• Ignore overblown, outdated speculative advice that is doomed to disappoint.

All great investors share a common secret to success: rational decision-making based on objective information. The Index Revolution shows you a more rational approach to the market for a more profitable portfolio.

I also recommend ‘Winning the Loser’s Game, 6th edition: Timeless Strategies for Successful Investing’ by Charles D. Ellis, and ‘Smarter Investing: Simpler Decisions for Better Results (Financial Times Series) by Tim Hale.

Duncan R Glassey
Senior Partner – Wealthflow LLP

This article is distributed for educational purposes and should not be considered investment advice or an offer of any product for sale. This article contains the opinions of the author but not necessarily the Firm and does not represent a recommendation of any particular security, strategy or investment product. Information contained herein has been obtained from sources believed to be reliable, but is not guaranteed. Past performance is not indicative of future results and no representation is made that the stated results will be replicated. Errors and omissions excepted.