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Invest Like a Fox... Not Like a Hedgehog: How You Can Earn Higher Returns With Less Risk



Invest Like a Fox... Not Like a Hedgehog: How You Can Earn Higher Returns With Less Risk

Robert C. Carlson

ISBN: 978-0-470-16749-6 June 2007 256 Pages


Proven techniques for leading-instead of following-fast-changing markets

Investors, no matter what strategy they are using, can be placed into two categories. Single-minded, inflexible hedgehogs lock into one strategy and stick with it through thick and thin. Dynamic, adaptable foxes, on the other hand, are alert for changes, learn from experience, embrace new ideas, and make the most of new trends and technologies. The key lies in being flexible and realizing that markets are dynamic. Invest Like a Fox . . . Not Like a Hedgehog shows investors how being a hedgehog can reduce returns while increasing the risk of a portfolio, and how acquiring the cunning and adaptability of the fox will improve returns while reducing risk. It reveals the shortcomings of popular but hedgehog-like investment strategies and shows how a fox-like investor adjusts to new market realities. Readers learn how to use the renowned Bayesian Theory of Probability and other guideposts from outside the world of finance to adjust their strategies and react to new information.




About the Author.

Chapter 1 Foxes vs. Hedgehogs.

Chapter 2 Classic Hedgehog Investment Strategies.

Chapter 3 The Modern Hedgehog Theory.

Chapter 4 How Foxes Look at Markets.

Chapter 5 The Valuation Cycle in Action.

Chapter 6 Foxes and Reverend Bayes: Rational Investing in Irrational Markets.

Chapter 7 Advice for Foxes and Hedgehogs: Key Investment Mistakes to Avoid.

Chapter 8 Portfolios of the Future.