The Investment Answer by Daniel C. Goldie and Gordon S. Murray is a concise and accessible guide to investing. The book is divided into five parts and covers the basics of investing, the importance of asset allocation, the benefits of passive investing, the dangers of active investing, and the importance of seeking professional advice.
The authors begin by explaining the importance of understanding the basics of investing, including the difference between stocks and bonds, the role of diversification, and the importance of managing risk. They then delve into the concept of asset allocation, which involves dividing investments among different asset classes, such as stocks, bonds, and cash. The authors argue that asset allocation is the most important factor in determining investment returns.
The book also covers the benefits of passive investing, which involves investing in low-cost index funds that track the performance of a particular market or sector. The authors argue that passive investing is a more reliable and cost-effective strategy than active investing, which involves trying to beat the market by selecting individual stocks or timing the market.
The Investment Answer also explores the dangers of active investing, including the high fees associated with actively managed funds and the difficulty of consistently outperforming the market. The authors argue that most investors would be better off sticking to a passive investing strategy.
Throughout the book, the authors emphasize the importance of seeking professional advice, particularly when it comes to complex investment strategies. They also stress the importance of having a long-term investment plan and sticking to it, even during periods of market volatility.
One of the strengths of The Investment Answer is its clear and straightforward writing style. The authors use simple language and avoid jargon, making the book accessible to readers with little or no investment experience. They also use real-world examples and anecdotes to illustrate key concepts and make the book engaging and relatable.
Another strength of the book is its practical advice. The authors provide clear recommendations for how to build a diversified portfolio, choose low-cost index funds, and avoid common investment pitfalls.
However, one weakness of The Investment Answer is its brevity. At just over 100 pages, the book is a quick read, but some readers may find that it lacks depth on certain topics.
Overall, The Investment Answer is a valuable resource for anyone looking to learn more about investing. Its clear writing style, practical advice, and emphasis on long-term planning make it a useful guide for both novice and experienced investors.
Key takeaways from the book include:
1. Asset allocation is the most important factor in determining

The Investment Answer is a book written by Daniel C. Goldie and Gordon S. Murray that provides a concise and straightforward guide to investing. The authors aim to demystify the world of investing and help readers make informed decisions about their finances. The book covers topics such as asset allocation, diversification, risk management, and the importance of keeping investment costs low. The central theme of the book is that investing does not have to be complicated or intimidating, and that with the right knowledge and approach, anyone can achieve their financial goals.

The Investment Answer by Daniel C. Goldie and Gordon S. Murray is a concise guide for individual investors seeking to understand the basics of investing. The book is structured into five main chapters, each of which covers a different aspect of investing.
Chapter one, “The Problem,” outlines the challenges that individual investors face when trying to navigate the complex world of investing. The authors discuss common mistakes that investors make, such as trying to time the market or chasing hot stocks, and explain why these strategies are unlikely to lead to long-term success.
Chapter two, “The Solution,” introduces the authors’ recommended approach to investing, which is based on a few simple principles: diversification, low costs, and a long-term perspective. The authors explain why these principles are important and how they can help investors achieve their financial goals.
Chapter three, “The History,” provides a brief overview of the history of investing, from the early days of stock markets to the rise of index funds and exchange-traded funds (ETFs). The authors explain how these developments have made it easier and more affordable for individual investors to build diversified portfolios.
Chapter four, “The Psychology,” explores the emotional and psychological factors that can influence investment decisions. The authors discuss common biases and heuristics that can lead investors astray, and offer strategies for overcoming these biases and making more rational decisions.
Chapter five, “The Business,” provides an overview of the investment industry, including the different types of financial advisors and investment products that are available to individual investors. The authors offer advice on how to choose a financial advisor and how to evaluate investment products.
Overall, The Investment Answer is a straightforward and accessible guide to investing that provides readers with a solid foundation for building a successful investment strategy.

Chapter 1: The Investment Answer
The authors introduce the concept of the “Investment Answer,” which is a set of principles that can guide investors in making informed decisions about their investments. They argue that investors need to focus on the long-term and avoid trying to time the market or chase after short-term gains.
Chapter 2: The Wall Street Marketing Machine
The authors discuss how the financial industry uses marketing tactics to sell investment products to consumers. They argue that investors need to be aware of these tactics and focus on their own goals and needs when making investment decisions.
Chapter 3: The Four Pillars of Investing
The authors introduce the four pillars of investing: asset allocation, diversification, cost, and discipline. They explain how each of these pillars is essential for building a successful investment portfolio.
Chapter 4: Asset Allocation
The authors explain the importance of asset allocation, which involves dividing an investment portfolio among different asset classes such as stocks, bonds, and cash. They argue that asset allocation is the most important factor in determining investment returns.
Chapter 5: Diversification
The authors discuss the benefits of diversification, which involves investing in a variety of asset classes and securities within each asset class. They argue that diversification can help reduce risk and increase returns over the long-term.
Chapter 6: Cost
The authors explain how investment costs can have a significant impact on investment returns over time. They argue that investors should focus on minimizing costs by choosing low-cost investment options.
Chapter 7: Discipline
The authors discuss the importance of discipline in investing, which involves sticking to a long-term investment plan and avoiding emotional reactions to market fluctuations. They argue that discipline is essential for achieving investment success.
Chapter 8: Putting It All Together
The authors provide a step-by-step guide for building a successful investment portfolio using the principles of asset allocation, diversification, cost, and discipline. They also provide advice on how to monitor and adjust the portfolio over time.
Chapter 9: The Investment Answer in Practice
The authors provide real-world examples of how the principles of the Investment Answer have been applied in practice. They argue that these principles can be used by investors of all levels of experience and can help them achieve their financial goals.

1. “Successful investing is not about picking winners. It’s about achieving goals.”
2. “Investing is not just about making money. It’s about making money in a way that helps you meet your goals and sleep well at night.”
3. “The most important thing you can do as an investor is to have a plan and stick to it.”
4. “Diversification is the only free lunch in investing.”
5. “The more you trade, the less you keep.”
6. “The best way to reduce risk is to control it, not to avoid it.”
7. “Investing is a long-term game, and the most successful investors are those who have the patience and discipline to stick with their plan.”
8. “The most dangerous words in investing are ‘this time it’s different.'”
9. “The key to successful investing is not predicting the future, but preparing for it.”
10. “The best investment you can make is in yourself.”

Introduction:
– The investment industry is complex, and investors often feel overwhelmed and confused.
– The authors aim to provide a simple and straightforward approach to investing.
Chapter 1: Wall Street’s Dirty Little Secrets
– The investment industry is designed to benefit Wall Street, not individual investors.
– Investors are often sold expensive and unnecessary products.
Chapter 2: The Five Decisions Every Investor Must Make
– Investors must make decisions regarding asset allocation, diversification, active vs. passive management, individual securities vs. funds, and monitoring and rebalancing.
– These decisions should be based on the investor’s goals, risk tolerance, and time horizon.
Chapter 3: Decision 1: Asset Allocation
– Asset allocation is the most important decision an investor can make.
– It involves determining the percentage of your portfolio to allocate to different asset classes, such as stocks, bonds, and cash.
Chapter 4: Decision 2: Diversification
– Diversification helps reduce risk by spreading investments across different asset classes, industries, and regions.
– Over-diversification can be counterproductive.
Chapter 5: Decision 3: Active vs. Passive Management
– Active management involves trying to beat the market by selecting individual securities.
– Passive management involves tracking a market index and accepting its returns.
– Passive management is generally more cost-effective and has been shown to outperform active management over the long term.
Chapter 6: Decision 4: Individual Securities vs. Funds
– Individual securities are riskier and require more research and monitoring than funds.
– Funds offer diversification and professional management at a lower cost.
Chapter 7: Decision 5: Monitoring and Rebalancing
– Monitoring and rebalancing involves regularly reviewing and adjusting your portfolio to maintain your desired asset allocation.
– This helps ensure that your portfolio remains aligned with your goals and risk tolerance.
Chapter 8: Implementing Your Investment Plan
– Implementing your investment plan involves selecting specific investments that align with your asset allocation and other decisions.
– Low-cost index funds are a good option for most investors.
Chapter 9: The Importance of Costs
– Costs can have a significant impact on investment returns over time.
– Investors should focus on minimizing costs by choosing low-cost investments and avoiding unnecessary fees.
Chapter 10: Putting It All Together
– Successful investing requires a long-term perspective, discipline, and patience.
– Investors should focus on what they can control, such as their asset allocation and costs, and

The Investment Answer by Daniel C. Goldie and Gordon S. Murray provides practical advice on how to invest wisely. The authors suggest five actionable steps that investors can take:
1. Determine your investment objectives: Before investing, it is important to define your investment goals and objectives. This includes understanding your risk tolerance, time horizon, and financial goals.
2. Develop a plan: Once you have determined your investment objectives, the next step is to develop a plan that aligns with those objectives. This includes deciding on an asset allocation strategy that balances risk and return.
3. Invest in low-cost, diversified funds: The authors recommend investing in low-cost, diversified funds that provide exposure to a broad range of asset classes. This reduces the risk of individual stocks or sectors negatively impacting your portfolio.
4. Rebalance regularly: Over time, your investment portfolio may become unbalanced as some assets perform better than others. It is important to rebalance your portfolio periodically to maintain your desired asset allocation.
5. Stay disciplined: Finally, the authors stress the importance of staying disciplined and avoiding emotional reactions to market fluctuations. This means sticking to your investment plan and avoiding the temptation to make impulsive decisions based on short-term market movements.
Overall, The Investment Answer provides practical guidance for investors looking to build a sound investment plan and achieve their financial goals.

One main idea of The Investment Answer is that investors should focus on their long-term goals and create a diversified portfolio that aligns with those goals. The authors use the example of a couple named Tom and Susan who are saving for retirement. They explain that Tom and Susan should focus on their long-term goals and create a diversified portfolio of stocks and bonds that aligns with their risk tolerance and time horizon.
Another main idea of the book is that investors should avoid trying to time the market and instead focus on their long-term investment plan. The authors use the example of a hypothetical investor named John who tries to time the market by buying and selling stocks based on short-term market trends. They explain that this strategy is unlikely to be successful in the long run and that John would be better off sticking to his long-term investment plan.
The authors also emphasize the importance of keeping investment costs low. They use the example of two mutual funds that have similar investment strategies but different expense ratios. They explain that the fund with the lower expense ratio will likely outperform the fund with the higher expense ratio over the long term, since the lower expenses will allow more of the investment returns to be passed on to the investor.
Overall, The Investment Answer provides practical advice for investors who want to create a long-term investment plan that aligns with their goals and risk tolerance. The authors use clear examples and anecdotes to illustrate their main ideas, making the book accessible and engaging for readers of all levels of investment experience.

Section 1: The Problem with Wall Street
In this section, Goldie and Murray highlight the issues with Wall Street’s approach to investing, including the emphasis on short-term gains, the complexity of financial products, and the conflicts of interest that exist within the industry. They argue that these factors can lead investors to make poor decisions and ultimately harm their long-term financial goals.
Key Insight: Wall Street’s approach to investing can be detrimental to investors’ long-term financial success.
Section 2: The Five Decisions Every Investor Must Make
In this section, Goldie and Murray outline the five key decisions every investor must make: determining investment goals, deciding on an asset allocation strategy, selecting specific investments, managing the portfolio, and evaluating performance. They stress the importance of taking a long-term view and creating a well-diversified portfolio.
Key Insight: Successful investing requires careful consideration of each of the five key decisions.
Section 3: The Investment Answer
In the final section, Goldie and Murray present their investment philosophy, which they call the “investment answer.” This approach emphasizes the importance of keeping costs low, diversifying across asset classes, and maintaining a disciplined investment strategy. They also stress the importance of being patient and avoiding emotional reactions to market fluctuations.
Key Insight: The investment answer is a simple, effective approach to investing that can help investors achieve their long-term financial goals.

The Investment Answer is a must-read for anyone who wants to understand the basics of investing. Written by Daniel C. Goldie and Gordon S. Murray, this book is a concise and engaging guide to investing that covers everything from the importance of diversification to the role of fees in investment returns.
The authors take a straightforward approach to investing, breaking down complex concepts into easy-to-understand language. They also provide practical advice on how to create a well-diversified portfolio and emphasize the importance of staying disciplined and avoiding emotional decision-making.
One of the key takeaways from the book is the importance of keeping investment costs low. The authors explain how fees can eat into investment returns over time and provide examples of how even small differences in fees can have a significant impact on long-term returns.
Overall, The Investment Answer is a great resource for anyone who wants to learn more about investing. Whether you’re a beginner or an experienced investor, this book provides valuable insights and advice that can help you make better investment decisions.

Overall, The Investment Answer is an excellent book for anyone looking to understand the basics of investing. The authors have done an excellent job of breaking down complex financial concepts into easy-to-understand language, making it accessible to readers with little to no prior knowledge of investing.
The book provides a comprehensive overview of various investment options, including stocks, bonds, and mutual funds, and provides practical advice on how to build a diversified portfolio that meets your investment goals and risk tolerance.
One of the standout features of this book is its emphasis on the importance of avoiding high fees and expenses associated with many investment products. The authors make a compelling case for low-cost index funds and ETFs as a way to achieve broad market exposure while minimizing fees.
Overall, The Investment Answer is a must-read for anyone looking to take control of their financial future and make informed investment decisions. Whether you’re a seasoned investor or just starting out, this book provides valuable insights and practical advice that can help you achieve your financial goals.