The Peaceful Investor is Available in paperback (and Kindle) at Amazon. The Peaceful Investor synthesizes decades of research into a plain language guide to investing for individual investors. Sample online chapters and the Table of Contents can be accessed at http://investorhome.com/peaceful-investor/.
Appropriate investing is a process that should be implemented to achieve an individual’s goals and limit risks, but too many investors make financial decisions based on instincts, or influenced by their circle of friends, family, or media. The Peaceful Investor starts with the psychology of investing and relatively recent discoveries from behavioral finance because individual’s experiences and pre-existing beliefs affect how they interpret new information. It can be critical to recognize risk tolerances and biases and consider how they may impact decision making to help prevent investors from shooting themselves in the foot. The book then bluntly discusses statements by some prominent individuals that the investment business is a “scam” and analyzes in depth the many (often unreasonable) costs of financial services. Informed investors should avoid being taken advantage of, or allowing Wall Street, or advisers to siphon off any more of their funds than necessary.
Investors should trading and investing, and understand how skill and luck impact investing. Historical performance for individual asset classes like bonds, stocks, and real estate, as well as alternative investments and tangibles (most of which have hundreds of years of empirical data) should be considered, but reasonable current projections should be adjusted based on current rates and conditions. Risk factors, or so-called efficient market anomalies are summarized to help investors evaluate whether it makes sense to invest passively, actively, or using social/environmental or other screens. Then appropriate asset classes and specific securities can be selected in a portfolio designed to meet an individual’s goals and constraints. Finally, investors should evaluate their expectations and actual performance versus appropriate benchmarks, including the global investment universe.
Individuals often pay attention to noise, use bad assumptions, and often make mistakes (like buying high and selling low), but so do high net worth and institutional investors, which often have their own conflicts of interest and pre-existing commitments. The playing field has become so level that individual investors today can not only do as well as so-called professionals, they can outperform them. The Peaceful Investor provides a roadmap to avoiding financial hazards, and closes with a checklist to help investors implement a financial plan designed to achieve their goals and live a peaceful financial life.
About the Author, Gary Karz, CFA
In 1996, Gary Karz was working for an investment banking firm in Los Angeles headed by a former Partner of Goldman Sachs as the internet was just starting to revolutionize the financial world. He became an early adaptor by personally launching several simple, but useful web sites including InvestorHome.com, which was featured on CNBC shortly thereafter. Nobel Laureate William Sharpe described the site as “a treasure trove of information” and later shared with Gary the pre-launch website of FinancialEngines.com, which was effectively the forefather of what is now called the “Robo-Advisor” industry (the firm Sharpe founded went on to become the largest registered investment advisory firm in the United States).
For more than a decade, Gary consulted to many of the largest investment firms in the world on best execution, trading efficiency, and improving performance through minimizing costs. His research has been cited in best-selling books including Eric Tyson’s Investing For Dummies and Jason Zweig’s revised edition of Benjamin Graham’s classic The Intelligent Investor, as well as in leading academic journals including the Financial Analysts Journal, the Journal of Finance, the Journal of Trading, and the Journal of Portfolio Management. His research has been cited in Forbes, Barron’s, Kiplinger’s, Morningstar.com, TheStreet.com, and he was once described as an “indefatigable organizer” in Individual Investor Magazine. An article in the San Francisco Examiner summarized “Entrepreneurs like Karz who are more interested in providing good information than making a quick buck are a rare breed.” In a 2014 article at the Wall Street Journal, Jason Zweig listed him among fifteen “Smart People for Investors to Follow” (along with Warren Buffett, Howard Marks, William Bernstein, and others).
Gary holds the Chartered Financial Analyst designation and is a graduate of the Marshall School of Business at the University of Southern California. He lives in Los Angeles with his wife and four children.
What people say about Gary Karz and Investorhome.comThis site [investorhome.com], maintained by financial analyst Gary Karz, offers a vast trove of reference material, including countless links to original research. Investors who want to educate themselves deeply using primary sources can start here.Jason Zweig in The Wall Street Journal in “Smart People for Investors to Follow” (9/6/2014)“Intelligent and knowledgeable, Karz has great investigative skills and instincts… Entrepreneurs like Karz who are more interested in providing good information than making a quick buck are a rare breed.”Eric Tyson (Author of five best sellers including Investing For Dummies and Personal Finance For Dummies)“Karz summarizes like a good journalist while documenting his research with footnotes meticulous enough to satisfy a panel of academics. And if there is any information online about the subject he is discussing, he will drop a link. He’s also scrupulously fair.”Mutual Funds Online“Gary Karz is an indefatigable organizer … what sets Investor Home apart is its original content-the icily objective rigor of Karz’s investment analysis.Individual Investor Magazine“I must compliment you on the originality, thoroughness, and usefulness of what you have put together.”Peter Bernstein (Author of Against the Gods and Capital Ideas)“Your site is a treasure trove of information.”William SharpeYou have created a remarkable resource for investors and anyone interested in the financial markets.”William Goetzmann