The classic guide to constructing a solid portfolio―without a financial advisor!

First published two decades ago, The Four Pillars of Investing has been the go-to resource for an entire generation of investors. This updated edition of the investing classic provides the foundational knowledge you need to avoid the most common pitfalls and build a portfolio in today’s roller-coaster world of investing.

Retired neurologist and master investor William J. Bernstein has seen it all throughout his career. Buying investments with borrowed money. Chasing past performance. Overestimating one’s own risk tolerance. Listening to cable news. These are just a few of the many mistakes he has witnessed smart, serious investors make, to the peril of their portfolios. Add to these behavioral errors such economic factors as deflation, sudden stock declines, soaring inflation, and the like―and investing can seem like something to be avoided at all costs. But with the right discipline and knowledge, you can build and manage an impressive portfolio. It all comes down to understanding four key pillars:

• Theory: Risk and return go hand in hand―you can’t make money without risk
• History: Understand past markets to understand today’s markets
• Psychology: Avoid the most common behavioral mistakes that tank portfolios
• Business: The cost of investment services can be high―unreasonably high

After taking you on a deep dive into each of these topics, Bernstein walks you through the process of designing and maintaining a powerful portfolio.

Times have changed. Economies have changed. And markets are ever-changing. But sound investing principles haven’t changed. Use The Four Pillars of Investing to stay a step ahead of your investing peers and build a portfolio to be proud of.

From the Back Cover

"When it comes to investing, risk control matters far more than chasing returns. In this book Dr. Bill Bernstein will show you that you have probably been worrying about the wrong risks when it comes to your investments. When you understand the theory, history, psychology, and business of investing, you will be far more likely to successfully reach your own ?nancial goals, while taking as little real risk as necessary."
— James M. Dahle , MD, Founder of The White Coat Investor

"Bill Bernstein possesses a rare combination of gifts: mathematician, historian, statistician, psychologist, econometrician, and wordsmith. These and a profound sense of what financial truths are misunderstood, crucial, and captivating form the foundation for this welcome edition of The Four Pillars of Investing , a pillar of my investment strategies course."
— Edward Tower , economics professor, Duke University
"Successful investing is a mind game. You win by understanding and controlling risk, not by plunging into the ?nancial jungle in search of a unicorn. Your goal is a comfortable life, a well-funded retirement and, perhaps, legacies for your children. This valuable book shows you how to keep eye on the ball—earning capital returns the intelligent way."
— Jane Bryant Quinn , author of How to Make Your Money Last: The Indispensable Retirement Guide

"In this fully revised investment classic, you can learn the lessons of a lifetime from one of America’s most preeminent investment advisers. Writing in an engaging and humorous style, Bernstein teaches us that successful investing involves not only doing the right thing but also avoiding the all-too-common blunders that can ruin any investment plan. Incorporating lessons from investment theory and history and understanding our psychological biases, this wise and entertaining book provides a trusted source of investment advice.
— Burton G. Malkiel , economics professor, Princeton University and author, A Random Walk Down Wall Street, 50th anniversary edition, 2023

"Bernstein has brilliantly distilled what is essentially four books into one here in an enlightening tour through investing theory, history, psychology and business using practical examples, stories, metaphors, math and a bit of humor. It's full of hard-won investing perspective and sage advice in an easily digestible format- the kind of book you could recommend to someone new to investing and know you did them right."
— Eric Balchunas , analyst, Bloomberg, author of The Bogle Effect

" Four Pillars has something for everybody. It’s the first investment book you should read, and also the fiftieth. Few investment books appeal to both novices and experts, and even fewer are a joy to read while doing so. It’s approachable for novices, a revelation to apprentices, and instructive even for experts."
— John Rekenthaler , Morningstar director of research

About the Author

William J. Bernstein, PhD, MD, is a retired neurologist and the cofounder of the investment management firm Efficient Frontier Advisors. He is the author of three finance books― The Intelligent Asset Allocator, The Four Pillars of Investing, and The Investor’s Manifesto ―and four history books, The Birth of Plenty, A Splendid Exchange, Masters of the Word, and The Delusions of Crowds. Bernstein won the prestigious James R. Vertin Award from the CFA Institute in 2017.