The Quest for Alpha: The Holy Grail of Investing

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John Wiley & Sons, Dec 20, 2010 - Business & Economics - 208 pages
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The final word on passive vs. active investing

The debate on active investing-stock picking and market timing-versus passive investing-markets are highly efficient and almost impossible to outperform-has raged for decades. Which side is right? In The Quest for Alpha: The Holy Grail of Investing, author Larry E. Swedroe puts an end to the debate, proving once and for all that active investing is likely to prove futile as the associated expenses-costs, fees, and time spent analyzing individual stocks and the overall market-are likely to exceed any benefits gained. The book

  • Presents research, data, and quotations that reveal it's extremely difficult to outperform the market
  • Explains why investors should focus on asset allocation, fund construction, costs, tax efficiency, and the building of a globally diversified portfolio that minimizes, if not eliminates, the taking of idiosyncratic, uncompensated risks
  • Other titles by Swedroe: The Only Guide to Alternative Investments You'll Ever Need and The Only Guide You'll Ever Need for the Right Financial Plan

Investors are on a never-ending search for a money manager who will deliver returns above the appropriate risk-adjusted benchmark, aka the "Holy Grail of Investing." The Quest for Alpha demonstrates that it's a loser's game-while it's possible to win, it's so unlikely that you shouldn't try.


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Review: The Quest for Alpha: The Holy Grail of Investing

User Review  - Goodreads

Really interesting book. Somewhat depressing if you own any investments other than low cost index funds, but the author supports his argument very well. Also a very easy read as far as finance books go. Read full review

Review: The Quest for Alpha: The Holy Grail of Investing

User Review  - Goodreads

Top-notch advice for the new or disillusioned investor. No quick fix, but a reasoned approach to constructing a solid plan to make money and avoid pitfalls. Read full review


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About the Author

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About the author (2010)

LARRY E. SWEDROE is a principal and the Director of Research for the Buckingham Family of Financial Services, which includes Buckingham Asset Management and BAM Advisor Services. He has also held executive-level positions at Prudential Home Mortgage, Citicorp, and CBS. Swedroe frequently speaks at financial conferences throughout the year and writes the blog "Wise Investing" at CBS

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