Stocks for the Long Run: A Guide to Selecting Markets for Long-Term Growth - Hardcover

In summing up his approach to investing, Siegel writes, "Poor investment strategy, whether it is for lack of diversification, pursuing hot stocks, or attempting to time the market, often stems from the investor's belief that it is necessary to beat the market to do well in the market. Nothing is further from the truth. The principle of this book is that through time the after-inflation returns on a well-diversified portfolio of common stocks have not only exceeded that of fixed income assets but have actually done so with less risk. Which stocks you own is secondary to whether you own stocks, especially if you maintain a balanced portfolio."

Stocks for the Long Run considers subjects as diverse as the history of the various market indices and what makes for a business cycle to contrarian indicators and the utility of 200-day moving averages. If you've just come into investing in the last few years and feel the need for a solid and comprehensive text about the market, Stocks for the Long Run is probably the best primer available. It also works as an excellent reference for seasoned investors and anyone else interested in how the market works. --Harry C. Edwards

Siegel analyzes stock returns and large-scale economic factors deftly, pausing to focus on specific historical issues that demonstrate the idea of stocks being a superior investment vehicle over long periods of time. His analysis of the performance of the Nifty Fifty stocks bought at their high in 1973 through the early 1990s is one particularly interesting stopping point, and his work on gold, recessions and taxes all make for interesting sidebars as well. Although some of the peripheral stuff may not exactly be Foolish, the general conclusion that stocks make superior long-term investment vehicles certainly is.