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Stocks for the Long Run by Jeremy J. Siegel — Summary, Key Ideas & Quotes
1994384 pages✦ 3-min Big ideas★ 4.0 (1)
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What is Stocks for the Long Run about?
Stocks for the Long Run set a precedent as the most complete and irrefutable case for stock market investment ever written. Now, this bible for long-term investing continues its tradition with a fourth edition featuring updated, revised, and new material that will keep you competitive in the global market and up-to-date on the latest index instruments.Wharton School professor Jeremy Siegel provides a potent mix of new evidence, research, and analysis supporting his key strategies for amassing a solid portfolio with enhanced returns and reduced risk. In a seamless narrative that incorporates the historical record of the markets with the realities of today's investing environment, the fourth edition features:A new chapter on globalization that documents how the emerging world will soon overtake the developed world and how it impacts the global economyAn extended chapter on indexing that includes fundamentally weighted indexes, which have historically offered better returns and lower volatility than their capitalization-weighted counterpartsInsightful analysis on what moves the market and how little we know about the sources of big market changesA sobering look at behavioral finance and the psychological factors that can lead investors to make irrational investment decisionsA major highlight of this new edition of Stocks for the Long Run is the chapter on global investing. With the U.S. stock market currently holding less than half of the world's equity capitalization, it's important for investors to diversify abroad. This updated edition shows you how to create an “efficient portfolio” that best balances asset allocation in domestic and foreign markets and provides thorough coverage on sector allocation across the globe.Stocks for the Long Run is essential reading for every investor and advisor who wants to fully understand the market-including its behavior, past trends, and future influences-in order to develop a prosperous long-term portfolio that is both safe and secure.
A glimpse inside
Stocks Outperform All Other Assets Long-Term
Siegel’s central thesis is that, over long periods—measured in decades—stocks have consistently outperformed bonds, gold, and cash. He marshals over two centuries of historical data to show that while stocks are volatile in the short run, their risk diminishes over time, making them the most reliable vehicle for growing wealth and preserving purchasing power against inflation.
The Power of Compounding and Time
A core message is that time in the market, not timing the market, is what builds wealth. The book demonstrates how compounding returns, even at modest annual rates, lead to exponential growth over decades. Siegel warns that trying to jump in and out of the market often leads to missing the best days, which can dramatically reduce long-term returns.
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★ 4.0 / 5
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Get smart in 3 min
6 key ideas, distilled
- 1Stocks Outperform All Other Assets Long-Term
- 2The Power of Compounding and Time
- 3Inflation: The Silent Wealth Eroder
- 4Indexing and the Case Against Stock Picking
- 5Behavioral Pitfalls and Investor Psychology
Popular quotes from Stocks for the Long Run
“Over the long term, stocks are the best investment for protecting wealth and beating inflation.”
“Far more money has been lost by investors preparing for corrections, or trying to anticipate corrections, than has been lost in corrections themselves.”
Frequently asked
Stocks for the Long Run set a precedent as the most complete and irrefutable case for stock market investment ever written. Now, this bible for long-term investing continues its tradition with a fourth edition featuring updated, revised, and new material that will keep you competitive in the global market and up-to-date on the latest index instruments.Wharton School professor Jeremy Siegel provide