Review and Giveaway: The Intelligent Portfolio

July 6th, 2008 · 178 Comments

[Front Cover of The Intelligent Portfolio]

The Intelligent Portfolio does an excellent job of explaining ten basic concepts needed to make good investment decisions in a simple and straightforward manner. The book will be invaluable for a beginning investor and there is plenty to keep sophisticated investors interested as well. I found the discussion of market portfolio, which is composed of asset classes weighted by their proportion of total world market value and real return expectations derived by reverse optimization to be particularly interesting. The book has garnered rave reviews and I couldn’t do better than concurring with Peter L. Bernstein’s praise for the book:

Books on personal investing are a dime a dozen. But if we add them up, all those dimes come to plenty of money. This book is worth all that and lots more. With its strong foundation in theory, the depth of its insights, the power of its message, the clarity of its exposition, and the value of its examples, The Intelligent Portfolio is worth many multiples of anything else in this overcrowded field.

The author, Christopher L. Jones, works for Financial Engines, a firm that puts sophisticated techniques like Monte Carlo simulation, investment analysis and portfolio optimization in the hands of individual investors. The book includes a 1-year subscription to the Personal Online Advisor service from Financial Engines. The service allows you to do retirement planning but it seems to be of limited use for Canadian residents because data for Canadian bonds, mutual funds, tax rates, CPP and OAS are not available. The retirement planner is a nifty tool — if you input a savings rate, the current portfolio holdings, the retirement target date and the desired income in retirement, the planner runs Monte Carlo simulations and displays the probability of achieving the target through icons borrowed from weather forecasting. It would be wonderful if Financial Engines starts offering this service in Canada as well.

Book Giveaway: If you missed Million Dollar Journey’s giveaway of the book, here’s your second chance. The publisher has generously provided an extra copy for our readers. Participation is very simple — just leave a comment to this post and don’t forget to include your email address. Deadline for entries is Friday, July 11, 2008 at 8 p.m. EDT. One entry per person. Canadian residents only. Your email will not be shared with anyone. I’ll pick one entry at random after the deadline. Good luck!

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178 responses so far ↓

1 N Todd // Jul 6, 2008 at 9:12 pm

I really appreciate these reviews and the chance to win the book. Thanks!
2 thrifty // Jul 6, 2008 at 9:21 pm

Thanks.
3 Investoid // Jul 6, 2008 at 9:26 pm

Nice review. Please include me in the draw.
Thanks!
4 Knowledge Investor // Jul 6, 2008 at 9:30 pm

Always looking to expand my investment knowledge and really appreciate these book reviews.
5 Tony // Jul 6, 2008 at 9:50 pm

You are right about PF books being a dime a dozen. My two favorites are The Wealthy Barber and Personal Finance for Canadians for Dummies. Both taught me a lot about basic personal financial principles. Thanks for the review.
6 Yann // Jul 6, 2008 at 9:51 pm

I would like to be included in the draw.
7 Terry // Jul 6, 2008 at 9:52 pm

Looks very worthwhile. Thanks.
8 Dillon // Jul 6, 2008 at 10:01 pm

Please include me in the draw.
9 Four Pillars // Jul 6, 2008 at 10:08 pm

Count me in!
10 Average Joe // Jul 6, 2008 at 10:10 pm

Great review. Looks interesting. Count me in.
11 Erick // Jul 6, 2008 at 10:11 pm

If I don’t win the book, I may have to break down and buy a copy.
12 0xcc // Jul 6, 2008 at 10:23 pm

Count me in!
13 AD // Jul 6, 2008 at 10:24 pm

Thanks in advance!
14 Marc // Jul 6, 2008 at 10:25 pm

Thanks for the review.
15 Francois // Jul 6, 2008 at 10:40 pm

This sounds like a book I should read!
16 Max // Jul 6, 2008 at 10:49 pm

Please include me!
17 Tob // Jul 6, 2008 at 10:50 pm

Just getting into personal finance, would love the book - thanks.
18 Andrei // Jul 6, 2008 at 11:16 pm

Me too!
19 larry macdonald // Jul 6, 2008 at 11:31 pm

CC — Please count me in. It sounds like a worthwhile book for the library. Another good source, by the way, on building portfolios is Geoff Considine. One can browse his articles at:
http://seekingalpha.com/author/geoff-considine
20 Ed // Jul 6, 2008 at 11:43 pm

Sounds like a good book.
21 Colin // Jul 6, 2008 at 11:47 pm

Count me in for the draw!
22 Patrick // Jul 7, 2008 at 12:01 am

I’d like to get my hands on that book!
23 Howard // Jul 7, 2008 at 12:38 am

Please count me in for the draw!
24 Paul // Jul 7, 2008 at 12:39 am

Please include me in the draw, cheers.
25 Terence // Jul 7, 2008 at 1:10 am

would be very interested in the book. count me in!
26 MoneyNing // Jul 7, 2008 at 1:19 am

I guess ex-Canadian resident doesn’t count but good luck to everyone else!
27 Carla Pullum // Jul 7, 2008 at 1:25 am

Love to read! Enter me!
28 Jan // Jul 7, 2008 at 2:03 am

me too! thanks!
29 Potato // Jul 7, 2008 at 2:51 am

I’d like a shot at reading it, and the simulations sound like a good thing to get going. Might have to try that myself if I ever get nostalgic for Matlab or Maple…
30 will // Jul 7, 2008 at 3:59 am

Great site. And count me in for the draw
31 Ken // Jul 7, 2008 at 4:50 am

Count me in for the draw! Thanks
32 BF // Jul 7, 2008 at 6:37 am

sounds like a great read!
33 Abe // Jul 7, 2008 at 7:01 am

Look forward to reading this book on my vacation.
Thanks.
34 Debt_Free_in_5 // Jul 7, 2008 at 7:37 am

Count me in!
35 Tyler // Jul 7, 2008 at 7:38 am

I’m in.
36 Devon // Jul 7, 2008 at 8:03 am

Thanks for reviewing these. Count me in for the draw please.
37 telly // Jul 7, 2008 at 8:07 am

I’d like in please…
38 Mike // Jul 7, 2008 at 8:11 am

please include me, thanks!
39 Ryan // Jul 7, 2008 at 8:12 am

Count me in! Thanks!
40 Chris Blackwell // Jul 7, 2008 at 8:30 am

Thank you for the opportunity!

Cheers,

Chris
41 Eric // Jul 7, 2008 at 8:31 am

Count me in!
42 Stefan // Jul 7, 2008 at 8:44 am

me me me!
43 Sean // Jul 7, 2008 at 8:53 am

Count me in. Having a math background, I’m really interested in the analysis with Monte-Carlo.
44 Millionaireby45 // Jul 7, 2008 at 8:54 am

I tries buying this book on the weekend but it was not available at my local bookstore. Count me in.
45 Mike H // Jul 7, 2008 at 9:23 am

Thanks!
46 guinness416 // Jul 7, 2008 at 9:27 am

I’m in too, thanks CC.
47 Steve // Jul 7, 2008 at 9:28 am

Looks like a great read! Thanks!
48 wo // Jul 7, 2008 at 9:34 am

Thanks.
49 Norm // Jul 7, 2008 at 9:37 am

Thank you! It will be a great addition to my library! Count me in.
50 Tom // Jul 7, 2008 at 9:46 am

Thanks!
51 Bob // Jul 7, 2008 at 9:47 am

Sounds like an interesting read. Sign me up.
52 Quick Lunar Cop // Jul 7, 2008 at 9:49 am

I’d love to get my hands on this book. Count me in!
53 John // Jul 7, 2008 at 10:17 am

I just finished “The four pillars of investing” on your recomendation. Sounds like you like this one two. Where is this book on your top ten list?
54 Philip S // Jul 7, 2008 at 10:19 am

this would be a great vacation read. Please include me in the draw.

Thanks,
Phil
55 SVijay // Jul 7, 2008 at 10:29 am

Please include me in the draw.

Thanks,
- Suresh
56 Derek // Jul 7, 2008 at 10:45 am

Thanks!
57 Dav // Jul 7, 2008 at 10:49 am

Sounds like a very interesting read!
Please include me in the draw!
58 ThickenMyWallet // Jul 7, 2008 at 10:58 am

Count me in! Thanks.
59 Chris // Jul 7, 2008 at 11:02 am

Sounds interesting. Please add me to draw.
60 Trevor Phillips // Jul 7, 2008 at 11:06 am

Please include me in the draw. Love your blog.
61 ERMT // Jul 7, 2008 at 11:14 am

Sounds great!
62 Anjo // Jul 7, 2008 at 11:27 am

Looks like an interesting read, please include me in the draw.
63 Aaron // Jul 7, 2008 at 11:53 am

Please count me in!
64 Jesus // Jul 7, 2008 at 11:54 am

Caount me in
65 Mike // Jul 7, 2008 at 12:12 pm

I’m holding my breath.
66 Yves // Jul 7, 2008 at 12:43 pm

Sounds like an interesting book. Good Review

Cheers,
67 Kenny // Jul 7, 2008 at 1:14 pm

Count me in, too!
68 James // Jul 7, 2008 at 1:18 pm

I would love to read the book, too!
69 TW // Jul 7, 2008 at 1:19 pm

Soudns interesting - I’ll take a ballot!
70 Julie // Jul 7, 2008 at 1:23 pm

Sounds like a good read, please include me!
71 Chuck // Jul 7, 2008 at 1:29 pm

Here’s my lot in for the draw.
72 Guppy // Jul 7, 2008 at 1:42 pm

Please add me to the draw
73 Shawn // Jul 7, 2008 at 1:43 pm

Count me in for the draw.
74 Dan // Jul 7, 2008 at 1:54 pm

Great review. Please add me to the draw, hopefully as the winner
75 Chris // Jul 7, 2008 at 2:13 pm

Looks like an excellent book. I’d also like to be included in the draw.
76 Joel // Jul 7, 2008 at 2:32 pm

I would love to get this book for free
77 Wayne // Jul 7, 2008 at 3:11 pm

Keep up the great work on this blog! Sounds like a great book - count me in.
78 that guy // Jul 7, 2008 at 3:20 pm

thanks for posting this, count me in for the draw.
79 Robert Dyck // Jul 7, 2008 at 3:22 pm

Thanks!
80 Nathan // Jul 7, 2008 at 3:28 pm

I love your website and would like to enter the draw for the book (though I am bound to buy a copy regardless)
81 Nathan B // Jul 7, 2008 at 3:44 pm

Thanks for the heads up about this book. Please enter me into the draw.
82 AM // Jul 7, 2008 at 4:05 pm

Sounds like an interesting read. Please count me in for the draw and thanks for pointing out the book.
83 Rick C // Jul 7, 2008 at 4:08 pm

I always enjoy your recommendations! Count me in.
84 shank // Jul 7, 2008 at 4:14 pm

the market portfolio you describe that includes reverse engineering returns is called the Black-Litterman approach which i believe was developed by a guy who of course worked for Goldman Sachs. It’s an interesting step forward on the tradition means of building a portfolio, which is usually descrbied as mean-variance optimization.
85 moneyguru // Jul 7, 2008 at 4:24 pm

I’m in … free is the right price
86 Kelle // Jul 7, 2008 at 4:32 pm

Who couldn’t use a more intelligent portfolio?
87 Double_J // Jul 7, 2008 at 6:21 pm

I would love to read that book!
Thanks!
88 Randy // Jul 7, 2008 at 6:41 pm

I’m in, thanks.
89 MikeH // Jul 7, 2008 at 8:30 pm

Please include me. Thank you.
90 Chris Dsou // Jul 7, 2008 at 8:32 pm

Financial Engines was started by Nobel prize winner Sharpe!
91 Bill Dixon // Jul 7, 2008 at 9:28 pm

Like the others I would like to be included in the draw. Also I like others have read The Wealthy Barber; pay yourself first.
92 Roger // Jul 7, 2008 at 9:34 pm

Bring it on!!! Thanks.
93 Linda // Jul 7, 2008 at 9:41 pm

Please enter me in the draw. Thanks for the giveaway!
94 Marina // Jul 7, 2008 at 10:04 pm

Please include me in the draw.
95 Serhan // Jul 7, 2008 at 10:12 pm

Count me in!
96 Mac // Jul 7, 2008 at 10:45 pm

Thanks for the review. Please include me in the draw.
97 midbach // Jul 7, 2008 at 11:35 pm

Please include me in the draw. Love the website; fingers crossed!
98 Pete // Jul 7, 2008 at 11:43 pm

My #1 blog
99 Kai // Jul 8, 2008 at 12:34 am

Thanks for the review and giveaway!
100 roadtozero // Jul 8, 2008 at 1:20 am

thanks for the review!!!
101 Duncan // Jul 8, 2008 at 2:01 am

Thanks for the book suggestion!
102 johnny // Jul 8, 2008 at 6:53 am

Keep up the great work.
Always interesting read.

Thank you
103 DG // Jul 8, 2008 at 8:36 am

I’m in!

Thanks,
Dan.
104 JK // Jul 8, 2008 at 8:55 am

I’m in.
105 Frog of Finance // Jul 8, 2008 at 9:00 am

Sounds like a nice book to read! :o)

Cheers,
Frog
106 Gail Bebee // Jul 8, 2008 at 9:18 am

As an independnet investor and the author of an investing book for Canadians, No Hype - The Straight Goods on Investing Your Money, I am always interested in reading new books on investing to test my investing ideas.
107 Craig S // Jul 8, 2008 at 9:33 am

Sounds like a book I need to read!
108 Millionaire Wannabe // Jul 8, 2008 at 9:44 am

Please include me in the book draw. Thanks for this great blog!
109 Ken S // Jul 8, 2008 at 9:47 am

Count me in for the book draw. Thanks!
110 Dorth // Jul 8, 2008 at 10:10 am

New to investing so I’d probably benefit from this book the most!
111 Returns Reaper // Jul 8, 2008 at 10:45 am

Sounds like a great book. Please include me in the draw.
112 Tom // Jul 8, 2008 at 1:40 pm

Please include me. Thanks!
113 TKO from Ontario // Jul 8, 2008 at 2:29 pm

New to reading ’so I’d probably benefit from this book the most!’

Cheers
114 Bill Sagert // Jul 8, 2008 at 3:12 pm

Thanks.
115 Kippy // Jul 8, 2008 at 3:35 pm

Yay! Free book! =)
116 Ed // Jul 8, 2008 at 6:34 pm

Please include me in the draw. Thanks!
117 Dave // Jul 8, 2008 at 7:07 pm

Please include me! Thanks!
118 george // Jul 8, 2008 at 8:40 pm

please include me, me, me!
119 Jim Caughran // Jul 8, 2008 at 9:13 pm

Thanks!
120 Pablito // Jul 8, 2008 at 9:24 pm

Sounds like a good read. Please count me in.
121 Linda Lin // Jul 8, 2008 at 10:21 pm

Please count me in. Thanks!
122 Viv // Jul 9, 2008 at 12:19 am

Looks like a good book! Thanks
123 Billy // Jul 9, 2008 at 12:24 am

Count me in.
124 Sol Veritas // Jul 9, 2008 at 12:56 am

me me me pls

i wanna be a winner too!
125 frigidextremity // Jul 9, 2008 at 1:20 am

Hey CC,

I am pretty skeptical about PF books, but, must admit am intrigued by your review. Count me in for the draw.

Thanks for the effort you put into your blog.
126 Carlos // Jul 9, 2008 at 8:40 am

Thanks.
127 Jerry Chappell // Jul 9, 2008 at 9:01 am

Thanks for doing this!
128 dave // Jul 9, 2008 at 9:25 am

I’m in for the book draw.
129 debra // Jul 9, 2008 at 9:32 am

Thanks!
130 Jordan Clark // Jul 9, 2008 at 9:51 am

Just finishing up The Intelligent Asset Allocator, this sounds like a good companion.

Thanks!
131 Cristian // Jul 9, 2008 at 10:12 am

Please include me in the draw, thanks.
132 Tim // Jul 9, 2008 at 10:26 am

Please include me in the draw. Thanks.
133 Punit // Jul 9, 2008 at 10:53 am

Thanks for the review.
134 Steve D // Jul 9, 2008 at 12:00 pm

Sounds interesting I may have to check this book out if I don’t win.
135 Somerlea Bartel // Jul 9, 2008 at 12:07 pm

I’d like to win!
136 Isak // Jul 9, 2008 at 12:11 pm

Sounds like a great book.
137 Michael Clark // Jul 9, 2008 at 12:56 pm

I would love to win this!
138 Richard Woloschuk // Jul 9, 2008 at 2:06 pm

Hope I win. Thanks.
139 Delaney // Jul 9, 2008 at 2:08 pm

Thanks for hte opportunity. I would love to read the book.
140 Andre // Jul 9, 2008 at 2:32 pm

In for the draw. Thanks for the review!
141 Mark // Jul 9, 2008 at 5:55 pm

Thanks for the great blog and chance to win a book!

Looking forward to learning more about my financial future.
142 James // Jul 9, 2008 at 6:22 pm

Count me in!
143 Damir // Jul 9, 2008 at 6:59 pm

DIY investor
144 Marc // Jul 9, 2008 at 7:09 pm

Would love to win a copy, sounds good.
145 Fred // Jul 9, 2008 at 8:16 pm

I’m game.
146 telefantastik // Jul 9, 2008 at 8:18 pm

count me in! thanks
147 Jason // Jul 9, 2008 at 9:14 pm

Sign me up
148 NeedBook // Jul 10, 2008 at 12:09 am

Sweet - great site by the way.
149 CougarHunter // Jul 10, 2008 at 12:38 am

I feel lucky… Thanks!
150 Treble // Jul 10, 2008 at 6:55 am

Please count me in! Thanks.
151 Awcool // Jul 10, 2008 at 8:52 am

As I’m currently reading the Intelligent Investor, this book would be a perfect way to implement Ben Graham’s ideas.. Hook me up!
152 Lauren // Jul 10, 2008 at 10:39 am

Count me in!

Lauren, Edmonton AB
153 Jay // Jul 10, 2008 at 2:23 pm

Book be mine.
154 Monica K // Jul 10, 2008 at 3:23 pm

Add me to the growing number of entrants…good luck to ME!
155 This and That # 100 // Jul 10, 2008 at 11:18 pm

[...] version of the blog round up will return next week. Don’t forget to enter your name in the draw for one copy of The Intelligent Portfolio. Entries will be accepted until 8 P.M. EDT on Friday, July 11, 2008. Have a great [...]
156 Canadian Capitalist // Jul 10, 2008 at 11:26 pm

Entry for Ryan:

“I would like to enter the contest for the Intelligent Portfolio book.”

John: While I liked the book and won’t hesitate to recommend it for reading, it won’t make my top ten list. It’s not the fault of the book, it’s very hard to bump some of the classics in my top ten list.
157 Ryan // Jul 11, 2008 at 1:51 am

Please toss my name in the hat. Thanks!
158 Harley S // Jul 11, 2008 at 2:05 am

Please count me in. Thanks!
159 Ryan P // Jul 11, 2008 at 8:19 am

Count me in!
160 Kevin // Jul 11, 2008 at 8:46 am

Thanks for the excellent info on your site… & for a shot at the book!
161 jimbo // Jul 11, 2008 at 9:21 am

Great website. Count me in for the giveaway!
162 Dan // Jul 11, 2008 at 9:52 am

I’d love to win the book! Lord knows I could use the help.
163 Shelley // Jul 11, 2008 at 10:47 am

I’d like a chance to win the book also - looks helpful! Thanks!
164 Leonleeca // Jul 11, 2008 at 10:49 am

Love to read it…
165 Doug // Jul 11, 2008 at 11:51 am

Nice review. Please include me in the draw.
166 Marc // Jul 11, 2008 at 12:04 pm

I was just listening to the radio and heard them talking about how they got rid of the 40yr mortgage. I thought, hmmm, I’m sure CC must have some info on his site about that. Sure enough you did. You’re very timely! Good job!

Count me in for the draw!
167 DennisP // Jul 11, 2008 at 2:18 pm

Exactly the book I’m looking for! Please include me in the draw.
168 Weekly Roundup: Tired of Pennsylvania Edition at Clever Dude Personal Finance & Money // Jul 11, 2008 at 3:33 pm

[...] Canadian Capitalist reviewed “The Intelligent Portfolio” and is having a Giveaway! You can still enter by 8pm EST Friday (just a few hours [...]
169 John Gooding // Jul 11, 2008 at 8:06 pm

Thanks for entering me into the draw!
170 Canadian Capitalist // Jul 11, 2008 at 8:38 pm

The contest is now closed. The winner will be announced shortly. Thanks to everyone for entering. I didn’t expect 170 entries or so. We’ll do another giveaway soon.
171 Canadian Capitalist // Jul 11, 2008 at 8:47 pm

The winner picked at random through the random.org website is #17 — Tob.

Thanks for entering everyone. We’ll do another draw very soon. I didn’t expect so many entries, so the next time, I’ll make sure we have more to giveaway.
172 Sunday Linking Personal Finance Carnival Edition | Personal Finance Blog by Money Ning // Jul 13, 2008 at 11:32 am

[...] you are a Canadian resident, Canadian Capitalist is giving away a free personal finance book so go check the post [...]
173 Finding a Financial Advisor, Part 1 // Jul 13, 2008 at 10:24 pm

[...] Thanks to everyone who entered in The Intelligent Portfolio giveaway. The winner, picked at random, is [...]
174 Dividend Growth Investor // Jul 14, 2008 at 1:15 pm

Wow CC,

You got over 172 comments for this book giveaway. You must be pretty popular

Best Regards,

DGI
175 How large is the Canadian Bond Market? // Jul 21, 2008 at 10:18 pm

[...] Canadian bonds and was puzzled because one of the interesting ideas in The Intelligent Portfolio (Read Review) is the concept of a market portfolio, in which asset classes are held in proportion to their [...]
176 Expected Asset Class Returns from The Intelligent Portfolio // Jul 24, 2008 at 8:19 am

[...] The Intelligent Portfolio (Book Review), the author has published real expected returns from various asset classes calculated by Financial [...]
177 To REIT, or not to REIT // Aug 4, 2008 at 9:47 pm

[...] Intelligent Portfolio (review), on the other hand, advises caution on REITs. The author, Christopher Jones, points out that stock [...]
178 In investing, as in life, flexibility is the key // Aug 17, 2008 at 9:28 pm

[...] returns were much lower than we expected at the outset. In his book, The Intelligent Portfolio (review), Christopher Jones makes this point: Even for this conservative allocation [90% fixed income and [...]

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