The Intelligent Asset Allocator: How to Build Your Portfolio to Maximize Returns and Minimize Risk

Despite being written decades ago, the Intelligent Asset Allocator is an interesting read, and remains largely relevant. One must keep in mind that it is written just before the tech bubble crash. The book goes farther into the math than most investing books that I've read, and though I have some minor disagreements, the book is a trove of valuable information. I would highly recommend it to those who enjoy learning about personal finance.

I like how this book emphasizes the importance of long-term trading. There's some good information here that you keep and use for years as this is for the person who can persevere through the market. Good book!

Great analysis and explanations, but the portfolios don't prove out in real life. The more complex the portfolio, the worse it has performed in past 10 years. I back tested them on Portfolio Analyzer. This is more evidence that people are cherry picking based on past performance and there's no strong reason to think it will continue.

The Intelligent Asset Allocator sits right next to 'Stocks for the Long Run' and 'The Intelligent Investor' on my bookshelf; it's a classic.I enjoy thinking about asset allocation and how to best structure a portfolio. No matter what studies you may trust the most, asset allocation is clearly a major driver of portfolio returns. This book invites you to deconstruct your assumptions and build them back up again. I would have liked a book ten times as long, but then I really enjoy seeing all the intricacies. Even so, there is a lot hinted at in these pages that gives you further directions to explore. Even if you are familiar with diversification, various asset classes, portfolio theory and the reasons for indexing, there is a lot of value here. I will admit the book is growing somewhat dated with respect to the time frame it discusses, but the book loses nothing in relevance.I am still building assets, and because this book referenced both standard and aggressive growth portfolios (I employ a portfolio very similar to the 'Madonna' Portfolio he mentions, with a couple key differences), I knew I was on the same trail as the author, which was incredibly gratifying for me. For those with different backgrounds, the insights you find relevant may differ.I will say the book would benefit from a greater discussion of various portfolios. How important is it to mimic the market (or rather, what is the risk associated with failing to look like the market, which is true to some degree of every portfolio?) What is the role of TIPS in a portfolio (or rather, when does Inflation become a central risk? I maintain that you only need them in retirement, but am eager to hear different opinions.) How much risk should you take with the credit portion of your portfolio (I use intermediate term treasuries myself - covariance vs equities is just too superior not to, even with the risk of rising rates. Again, I like to hear other opinions.)With reference to portfolios I've read about: the 'Gone Fishing Portfolio' was also amazingly comprehensive, if not as focussed on portfolio building as the IAA, and the portfolio it proposes is pretty solid. Swenson's books are very good, and his suggested portfolio is top notch, if history is any judge. Swedroe suggests a pretty bullet-proof portfolio, so even though returns won't blow you out of the water, they should be solid, and the ride should be serene (which can be very important in a retirement portfolio, as lack of volatility both increases SAFEMAX and decreases the odds of running out of money early... i.e. the trade-off for lower returns can yield a higher cash flow.) All of these authors are worth the read.

By chance, this was the first investing book I ever read. That was in 2001, and I've read a lot of investing books since then. None of them compare to The Intelligent Asset Allocator. This one will be a tough read for some people, but it is absolutely worth the effort. I've lost track of how many copies of this book I've given away.

Okay - this book appeared on some list on Amazon as one of the "Top 10" asset allocation books. I think the author is very intelligent and knows what he is writing about BUT warning - this is not a book for anyone who is not good with statistics and numbers. I feel that I have average intelligence and I think I understand the overall points of Bernstein's book. However, it reads like some statistical theorem - very esoteric. I found it dull and very laborious to get through. Painful and some parts barely understandable - written for mathematicians and statisticians! If you want the same message but MORE UNDERSTANDABLE - read "Common Sense on Mutual Funds" by John C. Bogle. Ahh - much better and same information. If you HATE math - the same message (much simplified) can be gained by reading "The Coffeehouse Investor" by Bill Schultheis. (Too simplified for me but fast read and basically can get you on your way to asset allocation quick, easy and effective.)