After building a solid concept of asset allocation and portfolio theory, the second part of Bernstein’s book (Chapter 7 to Chapter 9) elaborates on what is value investing, and guides the readers to build a portfolio which suits them well in a top-down approach. And finally some useful resources prepare you to be on the road of financial success.
Chapter 7 Odds and Ends Value Investing Small stocks outperform large stocks in the long run.
Here are some excerpts from The Intelligent Asset Allocator by William Bernstein, a very practical hands-on guide on how to derive a feasible asset allocation plan suitable for yourself. The first part (Chapter 1 to Chapter 6) is to convey the concept of asset allocation and portfolio theory, the rationale behind it, and how does it manifest in the real market. It also tries to convince readers that index approach is better than active managed funds.