The Incredible Shrinking Alpha 2nd edition: How to be a successful investor without picking winners [Paperback]

Active managers persistently lag the returns of benchmarks and index funds that track them, with the excuses for underperformance recycled every year. This comprehensive book is the antidote for the active managers siren song. If you understand the benefits of indexing, or systematic investing, it will reinforce your commitment while increasing your knowledge.

If you dont yet believe, Swedroe and Berkin provide a compelling case that youre playing the losers game of active management. Alpha, or outperformance against appropriate risk-adjusted benchmarks, is shrinking as it gets converted into beta, or factor exposures. They demonstrate that even for the most talented managers, their ability to add value is waning because: the amount of alpha available is declining; it must be split among an increasing amount of investment dollars; and the competition is getting tougher.

In this greatly expanded second edition, Swedroe and Berkin show you how to develop an investment plan that focuses on what risks to take, and how much of them, as well as how to build a diversified portfolio. They present a list of vehicles to consider when implementing your plan and provide guidance on the care and maintenance of your portfolio. As a bonus they add appendices that will make you a more informed and, therefore, better investor.

This makesThe Incredible Shrinking Alphaa complete guide to successful investment strategy.

Larry E. Swedroeis the chief research officer for Buckingham Strategic Wealth and Buckingham Strategic Partners. Larry holds an MBA in finance and investments from New York University and a bachelors degree in finance from Baruch College. Larry was among the first authors to publish a book that explained the science of investing in laymans terms, The Only Guide to a Winning Investment Strategy Youll Ever Need. He has since authored nine more books and co-authored seven books on investing and financial planning. His bookl“)