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Navigate the Noise
Book

Navigate the Noise

Investing with One of Wall Street's Top Investment Strategists

Richard Bernstein
Wiley, 2001

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Editorial Rating

8

Qualities

  • Innovative
  • Applicable

Recommendation

The more information a market provides the more efficiently it will operate, right? Well, in theory that’s so. In fact, market transparency has been a top goal of financial regulators in the U.S. for decades. But is it possible to have too much information? Richard Bernstein makes a compelling argument that not all information is good information. Noise - the deluge of 24-hour news coverage, constant cable TV market-chatter, continuous Internet feeds and barrages of electronic updates - is a danger to most investors, who lack the resources to separate the accurate from the spurious. This book is a Godsend for investors who think - usually mistakenly - they can make sense of it all. Bernstein tells you how to cut through the noise by focusing on long-term investment plans, diversifying and clearly assessing risk. getabstract recommends this informative book for its crisp, personal style, and for its practical approach to bringing some peace and quiet to your portfolio.

Take-Aways

  • A noisy market provides more information without better information.
  • The information explosion creates noise that interferes with good decision making.
  • The media plays up exciting news rather than the most accurate information.

About the Author

Richard Bernstein is a quantitative analyst at a major Wall Street firm. He developed a stock selection model based on analysts’ earning estimates, which he has been running since 1989, and back-tested it to early 1986, to provide a very effective model for selecting stocks. Using data that is updated monthly, it has produced long or buy portfolios that have consistently out-performed the overall market, while its short or sell portfolios have consistently under-performed the market.

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