This is an investment book by Michael E.Edleson and published by Wiley. This is the second edition, the first one i don't remember when it was published. For those who does not know Mr. Edleson, he was Standard Chartered's director for many years.
In his book, Edleson explained the advantages of value averaging our investment over the time and to get an optimal return from the investment. This book also explained the different between value averaging vs dollar cost averaging or constant dollar averaging. The value averaging idea is simple. Since no one can perfectly time the market, this book suggest that we spread our risk over the period of time based on the value of the holding of the asset i.e. if price of the asset is low, we should increase our purchase of that asset. While when the price is high, we purchase smaller quantity or nothing at all or even take out some of the profit gain. This is all based on the average value of the asset. Simply said this strategy allow us to avoid sudden interruption in our investment flow but keep on investing in bad times and good times. The only different is we adjust the speed of our investment according to the current market while at the same time spreading the risk over a period of time. This strategy work best in asset like stock, mutual fund etc.
For those who is into investment, i highly recommend this book and would say this is a very good book! I personally bought this book and like it very much. Please be aware that this book this is not telling us about science of getting rich overnight book but its all about investing our money and spreading the risk over a period of time non-stop with some elements of profit taking when the times is good while not forgeting to be conservative during bad times. For more information, you can check this book out at your local store or get more detailed product review by Amazon.
Regards.
Happy Blogger
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