INVEST LIKE THE BEST

An experienced investment professional shares 24 “best investor” strategies.

The typical investment book either doles out advice derived from a system created by the author or delves deeply into the plusses and minuses of specific, existing investment vehicles. Debut author and investment advisor Belchamber’s approach is refreshingly different: He’s studied some of the world’s most successful investors, distilling their strategies into a 12-chapter collection of insights, consolidated into a handy list at the book’s end. This concept gives the book strong organization and reinforces its credibility by drawing on the thoughts of multiple experts. Part I concentrates on the overall mindset of investors; to set up the theme, Belchamber appropriately quotes Benjamin Graham, mentor of Warren Buffett: “In the end, how your investments behave is much less important than how you behave.” Much of the first part concerns the psychology of investment, augmented by useful examples of errors that investors make when they “chase the past,” engage in self-sabotage, and fail to understand the various types of risk. In Part II, Belchamber ably covers best practices, which include setting priorities, leveraging compound interest, using metrics, and gaining awareness of “investment myths and heresies.” Part III explores specific investment strategy, beginning with a basic premise overlooked “by almost everyone” except best investors, according to the author—that “preservation and growth go together,” even though they’re “normally regarded as separate options.” Here, the author outlines the specifics of money management, investment allocation, and consilience (“the principle of strength in numbers”). A number of charts and graphs helpfully illustrate the key concepts in this final section. Belchamber concludes that “Far too many investors end up taking too much risk, poorly allocated, and without effective active management.” His overall aim is to give investors tools to change their thinking, and his book is clear and straightforward. Novices may find portions of the material somewhat advanced, but experienced investors will likely glean much of value; in fact, it may very well lead them to a new approach to long-term investing.

Discerning and actionable investment advice.