A new approach to money management. Ralph Fins
Investing is a more complex process than most novice investors think.
It seems to many that it is enough to have money and it is not at all difficult to invest it in something profitable, but as practice shows, more than half of the investments turn out to be unprofitable.
That’s why it’s so important to be able to manage capital; only diversification, insurance and taking into account risks will help you make a truly profitable investment.
One of the assistants in this matter can be the book by Ralph Finks “A New Approach to Money Management.”
It is dedicated to the creation of a structured investment portfolio; employees of a well-known trading company helped the author in creating the book.
New methodology – in the first chapter, the author reveals the essence of the new methodology, which is used to search for the most interesting investment objects. Provides comparisons with approaches previously used for these purposes.
Laws of growth, utility and finite flows – how do population growth rates influence the choice of investments, how justified is the risk in terms of utility.
Conditions, probability and correlation – probability correlation theory, assessment of compatible probabilities.
New model – mathematical optimization and its methods, objective function, practical application in creating an investment portfolio.
Money management for professionals – in this chapter an attempt is made to apply everything written above in practice. Particular attention is paid to portfolio formation, insurance, and loss management.
The book makes a mixed impression; on the one hand, you can find a lot of interesting information in it, on the other, everything is described in a rather complicated way and you have to think about every line.
To be honest, I would choose a different money management textbook for myself, but that's just my personal opinion.
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DjVu format reader in which this textbook is published.