Jackass Investing

Jackass Investing: Don't do it. Profit from it. is an investment book that challenges 20 common beliefs about investing and portfolio management. The text systematically breaks down each investing "myth" and explains why these widespread assumptions lead investors astray. Michael Dever presents his trading philosophy based on "return drivers" - the fundamental factors that influence market prices. The book outlines how investors can identify these drivers and use them to build effective trading strategies. The work focuses on broad market diversification and risk management principles that differ from standard investment advice. Dever argues against conventional portfolio construction methods and presents alternative approaches to achieving true diversification. At its core, this is a critique of established investment industry practices and groupthink that aims to give investors new frameworks for portfolio construction. The book's central thesis is that breaking free from common investment myths allows for better risk-adjusted returns.

Readers appreciate the book's contrarian take on common investing "myths" and its systematic breakdown of portfolio diversification strategies. Many note the clear explanations of return drivers and risk management concepts. Positive comments highlight: - Practical examples and case studies - Focus on portfolio-level thinking rather than individual investments - Explanation of why correlation matters more than asset class labels Common criticisms: - Too much time spent debunking basic concepts - Some strategies require institutional-level access - Claims of "myth-busting" can feel overstated - Limited actionable advice for retail investors Ratings: Amazon: 4.1/5 (82 reviews) Goodreads: 3.8/5 (89 ratings) Reader quote: "Great framework for thinking about true diversification, but implementation details are lacking for individual investors" - Amazon reviewer Critical quote: "Spends the first half attacking strawman arguments before getting to the useful content" - Goodreads reviewer

Against the Gods: The Remarkable Story of Risk by Peter L. Bernstein Chronicles the development of risk management and probability theory through history, connecting ancient practices to modern financial markets.

The Misbehavior of Markets by Benoit Mandelbrot Presents fractal mathematics as a tool to understand market behavior and challenges traditional investment theories.

Thinking Fast and Slow by Daniel Kahneman Examines cognitive biases and decision-making processes that influence investment choices and market behavior.

The Black Swan by Nassim Nicholas Taleb Explores the impact of rare events on financial markets and demonstrates the limitations of conventional risk assessment methods.

When Genius Failed by Roger Lowenstein Documents the rise and fall of Long-Term Capital Management to illustrate the dangers of relying on traditional investment models and assumptions.

🔸 The book's core concept of "return drivers" was developed over Michael Dever's 30+ years of trading experience, during which he managed both a futures fund and a venture capital firm. 🔸 Despite its provocative title, "Jackass Investing" is based on extensive academic research, including analysis of over 200 years of market data to test common investment beliefs. 🔸 The book challenges 20 specific investment "myths," including the popular belief that stocks provide the best long-term returns and that portfolio diversification simply means owning different types of stocks. 🔸 Michael Dever was one of the pioneers of "managed futures" trading in the 1980s and developed some of the earliest systematic trading strategies in this space. 🔸 The investment framework presented in the book draws parallels from fields outside finance, including evolutionary biology and behavioral psychology, to explain market behavior patterns.