Abstract
The eminent financial historian Peter L. Bernstein once stated with his customary elegance:
Investing is a process of making decisions today whose results will not be known until tomorrow. Nobody knows what tomorrow will bring, because nobody can control everything that is going to happen tomorrow. The overarching reality, the launching pad from which investment theory takes off, is that being wrong on occasion is inescapable, even for people who are very smart. The subject matter of investment theory, then, is about how best to manage our affairs in the face of that disagreeable reality.1
[Note to the reader: This chapter is included as background for the descriptions and prescriptions detailed in the next chapter. Readers with a basic understanding of portfolio management and principles may choose to skip this chapter.]
This is a preview of subscription content, log in via an institution.
Buying options
Tax calculation will be finalised at checkout
Purchases are for personal use only
Learn about institutional subscriptionsPreview
Unable to display preview. Download preview PDF.
Copyright information
© 2012 Ralph A. Rieves and John Lefebvre
About this chapter
Cite this chapter
Rieves, R.A., Lefebvre, J. (2012). Modern Investing Theories and Practices. In: Investor Relations for the Emerging Company. Palgrave Macmillan, New York. https://doi.org/10.1007/978-1-137-51050-1_3
Download citation
DOI: https://doi.org/10.1007/978-1-137-51050-1_3
Publisher Name: Palgrave Macmillan, New York
Print ISBN: 978-0-230-34196-8
Online ISBN: 978-1-137-51050-1
eBook Packages: Palgrave Business & Management CollectionBusiness and Management (R0)