Buy and Hedge

01/27/2012 · No Responses

If you’re trying to build wealth, sharp market downturns are your worst enemy. And nowadays, they’re happening far more often: in the last 18 years, the S&P 500 has experienced sixteen violent declines. Institutions and professional investors have mastered powerful hedging techniques for dramatically reducing the risks of market volatility. Now, you can do it, too–and you can’t afford not to. In Buy and Hedge, two leading investment experts show how to apply hedging as part of a long-term program for growing and preserving your assets. CNBC Fast Money guest Jay Pestrichelli and seasoned financial industry veteran Wayne Ferbert show how to systematically protect yourself against violent downward moves while giving your portfolio maximum room to run in upward markets. The authors’ techniques are easy to use, can be applied to most investment vehicles, and–once implemented–require surprisingly little “care and feeding.” You’ll discover how to take advantage of the hedge-building mechanisms built into low-cost index funds… invest in your ideas with confidence, because you’ve hedged the downside… systematically manage portfolios for risk as well as return… master and apply the “5 Iron Rules of Buy & Hedge”… use options to manage risk, not to create excess leverage… generate more dividends… effectively manage cash… and much more!

From the Back Cover

Grow Your Assets and Reduce Your Risks the Way Top Money Managers Do

“This book is an absolute must read for investors in today’s markets. Wayne and Jay provide a clearcut set of rules for investing that reduce portfolio volatility and provide the formula for superior long-term performance. Don’t just buy and hold—Buy and Hedge!”
—Joe Moglia, Chairman and former CEO, TD Ameritrade

“‘Buy and hold’: How many times have you heard that phrase? If the last ten years have taught us anything it’s that ‘buy and hold’ has become as obsolete as a VCR. In Buy and Hedge: The 5 Iron Rules for Investing Over the Long Term, Jay Pestrichelli and Wayne Ferbert have provided the average investor with a road map for success in today’s turbulent markets. Over the years I have learned that there are no magic bullets for investing, but this book highlights common sense and winning strategies that will protect and grow your hard earned cash.”
—Guy Adami, CNBC’s Fast Money

“In the current financial climate, truth and trust are the most valuable commodities, and risk management trumps reward chasing. This book and the authors hit on all cylinders.”
—Todd Harrison, Founder and CEO, Minyanville Media

“If you are a beginner, [this book] will introduce you to concepts you may have never even considered in a straightforward, easy to understand manner. And if you have been investing for yourself for years, you will still find the discussion of risk and the advanced tactics enlightening. Buy and Hedge is a great resource that you will consult time and again as you master each tactic.”
—Pete Ricketts, TD Ameritrade Board member, Chicago Cubs Board member, and former COO, Ameritrade

“Buy and Hedge provides individual investors an alternative method to manage risk in their portfolios. This book comes at a critical time as markets have become more volatile and more individuals are managing their own money.”
—Christopher Larkin, Senior Vice President, ETRADE Securities