A state–of–the–art program in investment principles and applications from topflight professionals.Edited by Peter Bernstein and Aswath Damodaran, who are widely respected throughout the world of finance, this authoritative text brings together an all–star team to provide both a hands–on and theoretical overview of investing in today's challenging financial environment.Once upon a time, Wall Street lived off little homilies like, 'buy low and sell high,' 'nothing ventured, nothing gained,' and 'don't put all your eggs in one basket.' Like all sayings that endure, these simple proverbs contain a lot of truth, even if not the whole truth. When wrapped into a body of theory that supports them with logic and a systematic set of principles, these elementary wisdoms pack a great deal of power.Yet if the theory is so consistent, logical, and powerful, another fabled Wall Street saying comes to mind: 'If you're so smart, how come you're not rich?' The answer is disarmingly simple: The essence of investment theory is that being smart is not a sufficient condition for being rich. This book is about the missing ingredients. –from the Preface by Peter L. Bernstein.