Author's Preface
Recommendation 1 - Economist Hong Chun-wook
Recommendation 2 - Shin Jin-oh, Chairman of Value Leaders

Entering

Chapter 1.
General Considerations
standard deviation

Chapter 2.
Risk and Return
Individual Asset Classes: 1926-1998 / Everyone's Grandchildren Must Be Rich / Asset Classes 1970-1998 / The Problem with Historical Returns / [Key Points]

Chapter 3.
Movements in multi-asset portfolios
Another Suggestion from Uncle Fred / Modeling the Movements of a Simple Portfolio / Handling Multiple Low-Correlation Assets / [Key Points]

Chapter 4.
Actual portfolio movements
Checking the Movements of a Complex Portfolio / Another Conversation with Uncle Fred / Small-Cap vs. Large-Cap / The Efficient Line / The Experts / [Key Points]

Chapter 5.
Optimal asset allocation
Calculating Optimal Asset Allocation / More Bad News / Diversifying Across Countries Using Small Caps / Asset Allocation: A Three-Step Approach / [Key Points]

Chapter 6.
market efficiency
From Alpha Man to Appman / Why Fund Managers Get It So Wrong? / Case Study: The January Effect / Index Investing Is the Answer / Survivorship Bias / Are You Paying Taxes? / Investment Newsletter / Dealing with Mr. Market / It's Not a Complete 'Random Walk' / What Does It All Mean? / Yin and Yang / [Key Points]

Chapter 7.
Various investment stories
Value Investing / 'New Era' Investing / A New Paradigm: Dow 36,000 / Hedging: The Currency Effect of Foreign Currency Holdings / Dynamic Asset Allocation / Behavioral Finance / [Key Points]

Chapter 8.
Implementing an Asset Allocation Strategy
Asset Allocation Selection / Tax Planning / Index Fund Product Recommendations: Vanguard and DFA / Bonds / Treasury Ladder / Detailed Asset Allocation Decisions / Putting Asset Allocation into Practice / Does It Have to Be This Complicated? / Everything Fund / Retirement: The Biggest Risk of All / Cousin Harry Asks for Your Advice

Chapter 9.
Books and sites to help you invest
Recommended Reading Lists / Useful Websites for Asset Allocation Investors

Preface to the 2001 First Edition - William Bernstein
Translator's Note - Kim Seong-il
Appendix 1.
Portfolio analysis method
Appendix 2.
Correlation coefficient between asset classes
Glossary
References

"A great book!" Highly recommended by investment guru John Bogle.

A letter of recommendation from Dr. Hong Chun-wook, Korea's leading economist.
A letter of recommendation from Shin Jin-oh, Chairman of Value Leaders, the pioneer of value investing.
『Magic Money Rolling』, an asset allocation investment book for individual investors,
Translated by Kim Seong-il, author of "Magic Pension Rolling"

“Investing is a subject that requires lifelong study.
My greatest hope is that this book will inspire you to learn more about investing.”
-William Bernstein

Nowadays, personal asset management is becoming increasingly difficult.
As economic growth rates worldwide decline and demand for investment funds shrinks, interest rates are falling into negative territory.
Additionally, with life expectancy increasing, more retirement funds are needed after retirement.
It's been a long time since the world became one where it's hard to make money, but it's even harder to make money.


Therefore, in a global financial market rife with uncertainty, balancing risk and return is more important than ever.
William Bernstein, author of the investment classics "The Four Pillars of Investing," "The Birth of Wealth," and "A Global History of Trade," helps many people build wealth through a carefully diversified portfolio.
A neurologist, he studied the basics of asset allocation with the goal of building sufficient assets to prepare for his retirement through as few risky investments as possible.
However, the author admits that while he thought he was writing a book for ordinary salaried workers trying to achieve their financial goals, he ended up writing a book for math geeks instead.

So what's the use of this book, published nearly 20 years ago and seemingly intended for eccentrics? It introduces the fundamentals of finance in a rational and analytical way.
First, this book covers a wide range of aspects, including not only quantitative aspects but also historical, psychological, and institutional aspects.
It can also serve as an introductory book for those who want to delve deeper into related topics.
Second, the book was first published in September 2000, at the height of the largest market bubble in American history.
So, this book shows what a true investor looks like in an uncertain market and what they feel.
Third, the portfolio recommended in this book may seem outdated, but it still works just as well today as it did in the past.

How can we avoid the risks of a sharp stock market downturn like the one in the summer of 2019? This book will be of great help to anyone struggling with this question.
Through various examples, you can understand how investing in certain assets can reduce risk and improve returns, and furthermore, what kind of portfolio is appropriate for an investor's investment period.
This book is recommended for those who want to secure a solid retirement fund for the future, those who want to manage their investment assets effectively by splitting up their busy daily lives, and those who want to systematically plan their financial status while looking at their lives.


In particular, this book was translated and reviewed by the author of 『Magic Money Rolling (2017)』, which deals with asset allocation investment strategies for individual investors in Korea, and 『Magic Pension Rolling (2019)』, which guides investment portfolios tailored to the domestic pension and tax-saving system, to help readers understand.
If this book presented a portfolio suited to the American situation, the translator's note reconstructs and presents a portfolio suited to the Korean situation.