The Women's Guide to Successful Investing

Copyrighted material – 9781137403346

Contents

List of Illustrations v

Foreword vii

Preface ix

Acknowledgments xiii

1 Wealth Accumulation Is an Attitude: Investing for Your Future Requires a Few Goals and Much Less Capital Than You Think 1

2 Why Women Make Excellent Investors: Women Inherently Display the Traits Required for Successful Investing 15

3 In Order to Get There We Need to Know Where We Are Going: Establishing Financial Goals Informs Successful Savings and Investment Plans 25

4 Developing an Investment Discipline That Will Achieve Our Goals: For the Diligent Student and Practitioner, Investing—Like Any Skill—Can Be Perfected; Matching Our Investment Strategy with Our Goals Is Paramount 37

5 Developing an Investment Discipline That Will Achieve Our Goals—Continued: The Stock Market Is a Tug-of-War between Fear and Greed; Arm Yourself with the Tools to Succeed 57

6 Construct Your Portfolio Like a Dinner Party Invitation List: Holdings Should Be Balanced and Behave Well If Things Get Out of Hand 77



iv CONTENTS

7 Meet Your Research Team: A Smartphone and Sirius XM Radio Account—Accessible and Timely Financial Information for Busy Women 93

8 Apple Computer—A Case Study in How to Select a Core Holding: A Role Model Investment You Will Want to Emulate 101

9 A Case Study of a Stalled Luxury Brand—Coach, Inc.: Whether Coach Bags Fit Your Budget or Style, We Can Learn a Great Deal from This Former Darling 117

10 Stocks to Own for a Lifetime: Identifying Industry Leaders Provides the Conviction Required to Buy Stocks We Are Willing to Hold for Decades 131

11 ETFs to Own for a Lifetime: How Women Investors Can Get Their Groove Back 151

12 Five Critical Lessons and Warnings: Don’t Touch a Hot Stove, Don’t Talk to Strangers, and Other Lessons for the Ages 159

13 Eleven Intelligent Investing Rules—And One More for Good Measure: Rules for Women to Invest By 169

14 If You Are Going to Hire a Professional Investment Advisor, Let’s Make Sure You Hire the Best: You Really Can Do This on Your Own but for Those of You Who Won’t, Consider the Following Guidelines 175

Appendix: Investment Websites 183

Glossary of Investment Terms: Mastering the Language Will Provide You with Confidence and Will Broaden Your Knowledge Base 185

Notes 199

Index 203



THE WOMEN’S GUIDE TO SUCCESSFUL INVESTING Copyright © Nancy Tengler, 2014.

All rights reserved.

First published in 2014 by PALGRAVE MACMILLAN® in the United States— a division of St. Martin’s Press LLC, 175 Fifth Avenue, New York, NY 10010.

Where this book is distributed in the UK, Europe and the rest of the world,this is by Palgrave Macmillan, a division of Macmillan Publishers Limited, registered in England, company number 785998, of Houndmills, Basingstoke, Hampshire RG21 6XS.

Palgrave Macmillan is the global academic imprint of the above companiesand has companies and representatives throughout the world.

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ISBN: 978–1–137–40334–6

Library of Congress Cataloging-in-Publication Data

Tengler, Nancy. The women’s guide to successful investing : achieving financial security

and realizing your goals / Nancy Tengler. pages cm ISBN 978–1–137–40334–6 (hardback) 1. Women—Finance, Personal. 2. Investments. 3. Stocks—Prices.

I. Title.

HG179.T4196 2014332.6082—dc23 2014005402

A catalogue record of the book is available from the British Library.

Design by Newgen Knowledge Works (P) Ltd., Chennai, India.

First edition: August 2014

10 9 8 7 6 5 4 3 2 1

Printed in the United States of America.



C H A P T E R 1

Wealth Accumulation Is an Attitude:

Investing for Your Future Requires a

Few Goals and Much Less Capital

Than You Think

This book is for women.

Which is not to say it is not for men. Anyone interested in achieving financial independence for themselves and their family will benefit from reading these pages. But, my focus is women—in particular, women who, for too long, have been left out of the financial dia-logue. Or have, perhaps, excused themselves from the conversation altogether. Since many women oversee their family finances, this deficit in our financial education creates at best a lost opportunity for the balance sheets of a majority of American households. And because the research shows that at some point in her life virtually every woman will become responsible for managing her family’s wealth we owe it to ourselves to become more financially savvy. Yet, most of us feel largely unprepared for the task. Three-quarters of women interviewed—no matter their level of education—told researchers they wished they had learned more about financial mat-ters. And they confess to sending their children out largely unpre-pared as well.

Financial independence is achieved through two distinct disci-plines: saving and investing. Equally as important and equally elu-sive, both are necessary ingredients to expand wealth. And that is our objective: to maximize wealth accumulation so you are able to reach your individual and family’s long-term objectives. To that end we will endeavor together to raise your saving and investing



2 THE WOMEN’S GUIDE TO SUCCESSFUL INVESTING

awareness. We will develop an understanding of how to successfully invest in the stock and bond markets through the identification and implementation of eleven Intelligent Investing Rules that will increase confidence in buying and selling stocks. In the end we will inevitably raise our financial IQ and, therefore, our likelihood of achieving financial independence.

Cultivate the Habit of Saving

Most of us—whether we engage in the practice or not—understand very clearly how to save money. Whether we do so or not is a matter of discipline or, in some cases, a lack of income. The vast majority of Americans are capable of saving. They simply lack the discipline. For many years my lack of saving discipline placed me at the head of that undisciplined mass of spenders. Having grown up in a home where my single mom worked two jobs, I learned to work, scrimp, and save from a very early age. By the time I hit my late twenties, I was ready to spend. Then the children came and the myriad expenses of growing them up: soccer cleats, baseball gloves, swim goggles, golf clubs, piano lessons, more swim goggles, and then one day: college. Spending had become a habit; any instinct I once had for saving was long ago repressed by the habit (and enjoyment) of spending. I had saving amnesia and, worse, I found myself making excuses about why I didn’t save. What was the point of stashing a few hundred dol-lars each month? I convinced myself it would make no difference.

Then, at some point, I rediscovered the literary classic A Tree Grows in Brooklyn. Francie Nolan’s dirt-poor, immigrant grand-mother provided a lesson in saving that shamed me back into the game. She counseled Francie’s mother to save whatever she could manage—even pennies each day, “The money will grow.” Soon, “there will be a small fortune.” The practice of saving begets more saving, becomes a habit, and eventually we find ourselves looking for opportunities not to spend when spending isn’t necessary. I am not offering a draconian alternative to living but rather an attitude that balances the opportunity to set aside a little something for the future against the desire to consume today.



WEALTH ACCUMULATION IS AN ATTITUDE 3

The study of behavioral economics explores the psychological challenges individuals face when it comes to saving. Numerous stud-ies have been conducted and numerous papers written to explain the problem that many of us have with saving money for our futures. One of the most vocal and prolific researchers in behavioral finance is Dr. Shlomo Benartzi, professor of UCLA Anderson School of Management and chief behavioral economist for Allianz Global Investors Center for Behavioral Finance. His work shows that “only 1 out of 10 Americans are saving enough for their retirement.” 1 Dr. Benartzi concludes that one of the three main factors that pre-vent us from saving is immediate gratification—the desire to spend today. He is right, of course. Many of us spend today because we spend too little time considering future needs. Add to that the mag-nitude of saving often required to meet future goals is so great we simply choose to ignore the problem. Many years ago when I was juggling family and career a colleague of mine suggested I find ways to solve my logistical problems with money. His argument was that I had more money than time. That is not to say I had an abundance of money but I had almost no free time. Hiring someone to help with house cleaning or yard work released me from the frenetic pace I was keeping and gave me more time with my family. Of course, there will always be times when spending will be the right solution. But had I retained saving as a habit I would have found ways to spend less, to avoid opportunities to spend unnecessarily. If my atti-tude had been one of saving a predetermined amount I might have then supplemented my penchant for consumer brands with generics. I would have pumped my own gas instead of driving through the full-service lane or had my children clean the house and mow the lawns (as they eventually did) rather than pay to do so. Rooting out wasteful spending—which I did in the office—would have saved hundreds, perhaps thousands, of dollars each month, money I could have tucked away for future investment. Ultimately, after Francie Nolan’s grandmother gave me a figurative slap up side the head—I did just that.

Soon I had set aside enough money to invest for a series of goals our family had established.




Saving, Even a Little, Matters

If you are like me (and apparently 90 percent of other Americans) you spend more than you need to. As an intelligent woman you don’t need me to advise you on debt management or how to con-struct a monthly budget, rather I am simply reminding you of the need to save. And the need to save as much as you possibly can. One of the most common fallacies I encounter comes from women who believe it is too late to save and invest. Whatever your age or stage in life you still have time to save and work toward financial independence.

According to a 2010 study conducted by the Boston Consulting Group titled “Leveling the Playing Field,” women tend to be long-term in focus, and very concerned about potential life-stage events (like sending their children to college or saving for their own retire-ment) that will affect their investment needs. 2 Our priorities and goals are clear: We want to provide for our families’ future financial needs. And the only way to do that is to save. Let’s look at a few examples to provide some perspective and increase our saving IQ.

Woman #1 : 35 years old, two children, married, stay-at-home mom. Expectations are that both children will attend a four-year college. Husband plans to retire in 25 years. Finances are tight but Woman #1 is able to tuck away $100 per month. Because like 70 percent of women, she does not consider herself an investor but a saver, she places her savings in a money market account. Since rates f luctuate and are more likely to rise than decline from this point we are going to calculate her return based on an inter-est rate of 2.5 percent (money market rates are currently a little less than 0.5 percent but expectations are that rates will continue to rise over the next few years so we will assume 2.5 percent): $41,618.

Woman #2: 45 years old, no children, unmarried. She plans to retire at 60 to engage in volunteer work. Currently she is tucking away $500 per month and, again, like 70 percent of women, she does not consider herself an investor. She is a saver. So her sav-ings also go into an interest-bearing account at her bank. In fifteen




years, assuming a 2.5 percent interest rate, she will have amassed $109,062.

Woman #3: 55 years old, adult children, married, and both their spouses are working. She plans to retire (as does her husband) in five years. She and her husband are saving $1,000 per month and believe that because they are close to retirement they should park their money in a savings account. At our assumed rate of 2.5 per-cent the couple will have accumulated $63,481.

Saving, even a little, does matter.

Spending Is the Anti-saving

As a professional investor, college professor, and mother I appreci-ate the importance of repetition when I am interested in driving home a point. So allow me to share with you a spending experience that has haunted me for over twenty-five years. In September 1988, two weeks after my first child was born, I engaged in two major transactions in one week: a purchase and an investment. We will discuss the investment in a moment but for now we are concerned with the purchase.

I was scheduled to make a presentation to a new, $100 million client. None of my business suits fit and I was not going to be caught dead in a maternity outfit after the fact—especially the maternity clothes available to working women in the late 1980s (but that is a story for a different book). I gathered up my new baby, stroller, diaper bag, blankets, and pacifier—the whole chaotic collection—and rushed to the mall. I bought almost the first thing I found: a knee-length sweater that draped discreetly over the extra pounds and looked surprisingly professional. When the clerk com-mented on the soft cashmere material, no bells went off. I didn’t live in a cashmere world, had never worn cashmere, and clearly had no idea of the expense or the impracticality. All I cared about was that it fit. Cradling my now restless baby in one arm, diaper bag slung over one shoulder, my purse over the other, I signed the receipt without examining it, dashed back home, and packed for my flight later that evening. Consumed with home life, I didn’t give the sweater another thought. Dressing for the meeting the




following afternoon, I removed the tag and saw the price for the first time: $1,099. One thousand ninety-nine dollars! Plus tax. Due at my client’s in 15 minutes with nothing else to wear and despite the overwhelming, choking realization of my stunning stupidity I now owned that reckless decision.

Twenty-five years later the sweater still hangs in my closet. It is wrinkled and bally as only cashmere can be and sports a few moth holes. That conspicuous purchase is a reminder of a time when spending rather than saving became a potentially ruinous habit.

Buying a $1,099 sweater—as outrageous as it was—represented only part of the expense equation; it is important to understand that there was a real cost and also an opportunity cost of my perilous sweater purchase. To calculate the real, out-of-pocket expense of that poor choice I would have to consider the dollar amount spent ($1,099), plus tax of approximately $80 and credit card interest of close to $220—I didn’t have the heart nor the means to pay it off at once. Perhaps the most important cost, however, was the oppor-tunity cost . Think of opportunity cost in dating parlance as the one who got away. It is the cost of not doing something or at the very least not doing the right thing. In addition to the actual cost of the sweater, the opportunity cost of my decision to purchase the sweater was the foregone accumulation and compounding of inter-est had I saved the money, or the appreciation potentially earned if I had taken the sweater money and invested it in my second trans-action that week—a stock (discussed below). The real and opportu-nity cost of that foolish and impulsive purchase still echoes.

Saving to Invest Is the Wisest Strategy

The second element required to achieve financial independence involves investing. As soon I say, “Nobody gets rich saving—you must invest,” I will receive hundreds of emails disputing my claim and describing Great Aunt Edith who lived in the family home with her cats, took in sewing, and left her nieces and nephews $1 million upon her death at the ripe old age of 98 years. Let’s stipulate for purposes of my illustration that some people really can become wealthy by saving alone—if they live long enough. The




vast majority, however, become wealthy or retire comfortably or put their five children through college debt-free by a combination of the two activities: saving and investing.

Investing is not gambling. Nor is it a scientific mystery inac-cessible to average individuals. Investing is a long-term discipline that will generate excellent returns for patient investors. It is no coincidence that all of the great investors, those celebrated by the financial media and professionals, are long-term, disciplined inves-tors who establish and stick with their investing discipline in good markets and bad. My objective is to aid you in determining how to establish an appropriate discipline that you will feel comfortable employing during good markets and difficult markets. Markets like the financial crisis in 2008–2009.

To illustrate the value of long-term investing let’s consider my second transaction during that fateful week twenty-five years ago.

In a largely symbolic gesture, I purchased one share of IBM stock for our son. I thought it would be fun to hang the certificate on his wall and use it as an object lesson to teach him about things financial. Before I could get the share framed, I misplaced it and so the lesson was, for the most part, lost. But because I lost the share, I forgot all about it and consequently left the investment (correctly) alone. Each quarter for the next twenty-five years the dividend paid by the company was reinvested in an incremental share of IBM stock. That approximately $100 investment returned 1,020 per-cent or 10.6 percent per year through the end of September 2013. During that period there have been two colossally devastating bear markets that frightened investors mistakenly into cash all the while our little share of IBM plumped and expanded like bread dough. Though market corrections punched down the dough a few times, fueled by the yeast of earnings (which produce stock price growth and dividend payments) our $100 value has grown at a pace far exceeding the rate of inflation and the return on savings or money market accounts. (For all of you stock market skeptics, it is also important to note that the return on the S&P 500 over that same period was a respectable 797 percent or 9.9 percent per year. Simply investing in the stock market index produced enviable returns as well.)




I chose the time period featured below because it represents my actual experience. But, the passage of time is essential to invest-ing; even if your timing is not perfect and you purchase shares before a market correction or a prolonged period of unimpres-sive returns (as I unwittingly did: IBM traded sideways, provid-ing almost no appreciation for the first ten years), you will be asking yourself only one question: Why didn’t I buy more? That $100 share of IBM is worth over $1,300 because of the reinvest-ment of dividends and capital appreciation of the stock over the holding period. Had I contributed $100 per month to my IBM holdings, and assuming our annualized return over the 25-year period of 10.6 percent, my investment would be worth just shy of $150,000. The powerful combination of saving and investing is undeniable.

So, there are two important facts to consider when we make financial decisions. The first is that there is an opportunity cost to spending. Think of spending as the anti-saving. Had I invested that $1,099 in, say, IBM stock as I did for my son, my investment would be worth $11,430 twenty-five years later. Instead of a ragged and useless old sweater I would have a nice little nest egg set aside. My opportunity cost is the $11,430 I didn’t earn because I didn’t save and invest that money. The second factor is that while saving alone is immensely better than not saving at all, saving and investing are far superior. Had I simply saved the $100 instead of investing it in IBM stock, that $100 would be worth far less than the approxi-mately $1,300 I have earned from my one share purchase. And had I added to that investment $100 each month over the same twenty-five year period my investment would be valued at an approximately eye-popping $150,000.

One more thing about investing in stocks. I understand that the market melt-down of 2008 has placed a number of would-be investors on the sidelines. I understand that our aversion to loss can overpower our desire for return. Market routs like 2008 when stocks in the S&P 500 plunged 37 percent are the reason many people feel investing is like gambling. The losses investors experi-enced in their portfolios were real and devastating and, to many,




excessively arbitrary. For some they were much more than paper losses if the money was needed and stocks had to be sold at the bottom. Others simply lost their nerve and sold into the weakness and the breakneck speed of the stock market’s decline wiped out years, even decades, of savings in a matter of months. Worse, in the midst of the crisis the most vocal pundits were telling us that our financial system was broken and had fundamentally changed, adding fuel to the selling blaze. It is easy to see why many inves-tors have stayed on the sidelines over the last five years while the market has about doubled, regaining and surpassing 2008 levels. If we save to provide for our future—a safer future—investing in the stock market can feel a bit too much like spinning a roulette wheel. Is it possible to invest despite the unsettling fear that grips us dur-ing declines? Can we develop the discipline to continue investing during markets like 2008—often a once-in-a-lifetime opportunity to buy great companies on sale—while suppressing the urge to bail out? To learn not to zig when we should zag?

Establishing an Investment Discipline That Meets Your Risk Tolerance Is Critical

This will be our challenge: To develop an investment discipline that ensures you will generate long-term capital appreciation and that through practice you will develop the investing muscle memory to follow your discipline even when it is hard to do. We will endeavor to develop a base of knowledge (not technical mumbo jumbo) that will provide the courage to follow your plan despite the dissonance of cyclical economic and market trends. By the time you finish this book you will understand your risk tolerance and you will have developed an investing discipline that suits your goals and those you have established for your family. You will, in short, know exactly where you are going and how to get there. We will establish eleven Intelligent Investing Rules that will guide your actions and reinforce your decisions during good markets and bad.

Intelligent Investing Rule #1: Having any investment disci-pline is better than having no discipline at all; once your investment




strategy is established, never deviate. (But, if you do fall off the wagon, don’t give up, get right back on and stay the course.)

An Example of Staying the Course

When the pundits tell you it is different this time. Remember that there is one tried and true investing tenet: Things are rarely differ-ent. It is accurate, however, that companies and their products cycle in and out of favor. It is also true that some formerly very good companies have mismanaged their way out of business: Polaroid and Eastman Kodak come to mind. But the majority of the time, good companies—and especially great companies—stumble, get back on their feet, regroup, and power forward. We are interested in buying great companies managed by great management teams, with the talent and financial wherewithal to overcome any inevi-table problems. Starbucks ( stock ticker: SBUX) is one such com-pany and a growth stock that stumbled dramatically after too rapid growth leading into the financial crisis of 2008. And a company I bought too soon. Buying early is one of the occupational hazards of being an investor. When a growth company disappoints inves-tors, the sentiment quickly changes from love (price appreciation) to hate (price depreciation) to indifference (price stagnation and potential further depreciation). For our purposes we will call these great growth companies that have fallen out of favor Fallen Angel growth stocks .

It is important to remember that growth investors can sell out of a holding much faster than value hunters will buy in. In fact, because growth investors are often momentum driven they may exit an entire position in a stock if they so much as sniff trouble. When the earnings miss or a new product or distribution glitch manifests they run—don’t walk—for the exits. At the same sign of trouble that causes growth investors to flee and the stock price to collapse, the value crowd begins to look more closely at whether or not to buy. It takes time to gather data and analyze the company’s business. Time to decide whether or not and when to buy. The intelligent investor’s dilemma is to determine when to get into the stock of a great com-pany that has stumbled. Sometimes we are too eager.




When I saw a chance to buy Starbucks in April 2007, I did. The stock had declined 30 percent from a recent high of $40. The com-pany had expanded too quickly; same store sales were declining as new stores cannibalized sales from established locations. I waited for the stock price to stabilize around the $31 level and began to accumulate my holdings. In December 2007, celebrated CEO Howard Schultz returned to the company, and the market cheered Schultz’s reengagement with a rally in SBUX stock price. Then the financial crisis of 2008 hit and the market sunk like a stone, drag-ging Starbucks with it until the stock finally hit bottom under $10 per share. An unmitigated disaster, you might think.

Normally my investing discipline would lead me to buy more of the stock in a great company like Starbucks as it declined but I was busy with grad school and two high-school age kids and I, frankly, wasn’t paying close attention to my investments. I did nothing but ride the stock down from $31 to a low of around $8 per share. But here is the compelling fact about buying great companies. You don’t have to know the exact day the stock hits bottom. You don’t have to be right about every detail. You just have to stick to your discipline and let the company management do the heavy lifting.

Though I bought SBUX far from where it ultimately bottomed, I still generated a return of 15.64 percent per year since my April 27, 2007 purchase, well in excess of the S&P 500’s return of 5.47 percent over the same period. Had I bottom-picked the stock toward the end of 2008, I would have received an annual return of (gulp) 61.4 percent versus 21.9 percent for the market. A far supe-rior return, indeed. But getting it mostly right and generating a steady return over time is our objective and despite being too early I did just that. The point is that stock investing is about generating consistent, excess returns over time, not necessarily about secur-ing cocktail party bragging rights. Remember Intelligent Investing Rule #1: Having any investment discipline is better than having no discipline at all; once your investment strategy is established, never deviate. Your allocation to stocks might change as you grow older or grow closer to reaching a particular goal but how you buy and




sell stocks—your investment discipline or strategy—should not be altered.

How Much Do I Need to Save in Order to Invest?

Investing requires much less capital than most people imagine. Two thousand dollars is a good start. We can make do with even less. But, if you follow a savings pattern similar to the ones described above and invest in stocks you will generate even more wealth on your road to financial independence. If, for example, assuming the long-term average annual return for the stock market over the last 100 years of 9 percent, we can recalculate the three Woman Investor scenarios discussed earlier in the chapter. Following the same patterns of saving outlined previously, Woman #1 ends up with $112,953 if she invests in stocks versus $41,618 at the end of twenty-five years if she places the money in an interest-bearing bank account. She saves the same $100 per month but the power of subsequently investing the money in stocks results in a far more robust return. The same applies for Woman #2 who now ends up with $190,621 after fifteen years of investing $500 per month ver-sus $109,062 if she simply saves the same amount. And Woman #3 generates wealth of $75,989 after five years of investing vs. $63,481 saving $1,000 per month and depositing it in the bank. The takeaway? Investing generates significantly superior returns over saving. And, again, we note that the length of time invested clearly improves total return, but the critical component in achiev-ing higher returns is investing our savings rather than just tucking those savings in the bank at rates that barely (if at all) keep up with inflation. Wealth generation is achieved through investing what we’ve saved, not simply saving alone.

No matter your age or income, my goal is to raise your financial IQ. To increase your awareness of saving and establish a habit of saving for future life-stage events. To remove the fear and confu-sion you may have developed toward investing by teaching you how to identify great companies. That knowledge will build your confi-dence to buy those great companies when their stocks are cheap—companies you will want to own for a lifetime. I can’t guarantee




you’ll always make perfect investments—I don’t know any inves-tor who gets it right every time—but I can guarantee that as you build and diversify your holdings you will generate returns over the long-term that will exceed today’s money market and certificate of deposit rates and ensure the value of your investments exceed the growth of inflation. And because you will be following a well-defined discipline—think: work-out regimen or diet—even if you make the occasional mistake your effort will produce sound results overall and you will avoid avoid the pitfall of falling financially behind. You will be well on your way to financial independence.

So let’s dig in and endeavor to raise our financial and investing IQ.



3M Company (MMM), 146, 15610-k, 127, 186, 19312 Fundamental Factors model, 101–2401(k), 31–3, 35, 54, 69–70, 91, 164–5,

188–9529 College Savings Plan, 27–9, 88, 91

A Tree Grows in Brooklyn (Nolan), 2Abbott Laboratories (ABT), 145, 156Abrams, Dan, 18ABT. See Abbott Laboratoriesactive management, defined, 186Allianz Global Investors Center for

Behavioral Finance, 3Amazon.com Inc. (AMZN), 44–7, 86,

113–14, 139, 154American Express (AXP), 145Ameriprise Financial, 29Amgen, Inc. (biotech) (AMGN), 62, 145AMGN. See Amgen, Inc.AMZN. See Amazon.com Inc.annual report, 64, 74, 186Annual total return for Dow Jones (1987–

2003), 165anti-saving, spending as, 5–6Apple Computer (AAPL), 38, 43, 62, 99,

101–15, 121, 125–8, 131–2, 139, 146, 154–5, 167, 189

and competition, 108–9and ETF core holding options, 112–15and investment strategy, 102–3and lowered expectations, 109–10and news sources, 110–12price of, 104–7and valuation, 107–8

“The Arithmetic of Investment Expenses” (Sharpe) (2013), 70

Arnott, Rob, 51, 161Asness, Clifford S., 161asset allocation, 31–6, 78–80, 86,

88–91, 186defined, 186and financial goals, 32–3and portfolios, 78–80, 88–90

Astaire, Fred, xiiiAT&T, 50, 53AXP. See American Express

Bajtelsmit, Vickie L., xiiBandaids, 141Bank of America Corp., 113banking, 81, 84, 88, 145–6, 170, 192Barber, Brad M., 16–17Barclays Global Investors, 68Barron’s, 22, 48–50, 65, 81, 96, 111, 126,

133, 138, 146bear market, 7, 22, 186Beebower, Gilbert L., 77

behavioral economics, 3, 18–21, 24, 30, 34, 57, 186, 196

defined, 186and women as great investors, 19–21

Benartzi, Shlomo, 3, 30Berkshire Hathaway, 97, 114Bernasek, Alexandra, xiiBernstein, Peter L., 81Bespoke Investment Group, 85bias, 18–20, 23–4biotech, 62, 81, 154, 162Black Monday (1987), 163–4BlackBerry, 108BlackRock, 68Bloomberg.com, 45, 59, 62–4, 95–7, 99,

141, 183blue-chip stocks, 82, 186The Bob Newhart Show, 175Bogle, Jack, 32–3, 72Boston Consulting Group, 4, 175–6“Boys Will Be Boys: Gender,

Overconfidence, and Common Stock Investment” (research paper) (2001), 16

brain wiring, and gender, 79–80brand dominance, 101, 103, 133–6, 144, 186Brinson, Gary P., 77–9, 85Buffett, Warren, 38–9, 58, 67–8, 94, 97,

114, 133, 164buggy-whip factor, 57–8, 101, 103, 106

Index



204 INDEX

bull market, 34, 157, 164, 187buy-side analyst, 187, 196

capital appreciation, 8–9, 187CAT. See Caterpillar TractorCaterpillar Tractor (CAT), 146Chambers, John, 148–9Charles Schwab. See Schwabchasing stocks, 163–6“cheap for good reason,” 101–2, 104, 149Chevron Corporation (CVX), 146, 156Chipotle, 43Cisco Systems (CSCO), 53, 80, 113, 147–50Citigroup (C), 80–1, 147, 149the cloud, 137–9, 149CNBC, 98–9Coach, Inc. (COH), 62, 86, 99, 117–29

and dividends, 126–7and ETF options, 127–9history of, 118–20and news sources, 125–6and qualitative factors, 120and valuation metrics, 120–5

Coca Cola Company (KO), 62, 111, 113, 119, 122, 126, 132–6, 146, 149, 156

college savings, 2, 4, 6–7, 25–9, 91, 102–3, 114, 124

See 529 College Savings PlanComcast Corp., 62, 113–14compensation structure, advisor’s, 180–1Consumer Discretionary sector, 85–6Cook, Tim, 103–4, 107core holding, 101–15correlation, 82–3, 117, 187correlation coefficient, 187COST. See CostcoCostco (COST), 43, 136critical lessons, 159–68

and chasing stocks, 163–6and discipline, 166–7and the dividend, 159–61and getting burned, 167–8and talking to strangers, 161–3

CVX. See Chevron Corporation“cyclical trend,” 117

DCA. See dollar-cost averagingDe Long, J. Bradford, 58defined-benefit plan, 31, 187–8defined-contribution plans, 31, 188“Determinants of Portfolio Performance”

(Brinson, Hood, and Beebower), 77diligence, 49, 147–50, 170Dillard, Annie, 131dinner parties, and investments, 27, 77–8,

82–3

DIS. See Walt Disney Companydiscipline. See investment disciplineDisney (Walt Disney Company), 62, 80, 86,

95, 112, 132diversification, 12–13, 69, 73–4, 81–3, 88,

112–14, 127–9, 132, 134, 144–6, 149, 152–4, 157–8, 171–2, 190

and ETFs, 73–4, 158and Intelligent Investment Rule #6,

88, 171and portfolios, 82–3

“dividend paying culture,” 49–51, 61, 68, 188

dividend payout ratio, 188dividends, 7–8, 27, 48–56, 59–61, 63–5,

67–8, 73–5, 88, 96, 105, 110–12, 126–7, 131–9, 144–6, 148–50, 156, 159–61, 165, 170, 173, 186, 188–9

and goals, 49–51and payout, 49–51, 61, 68, 160, 188and payout ratio, 188and return, 187and yield, 188–9

“Dividends: A Review of Historical Returns” (Heartland Funds) (white paper), 51

“Dividends and The Three Dwarfs” (Arnott) (editorial) (2003), 51

DJIA. See Dow Jones Industrial AverageDNA. See Genentech“Does Asset Allocation Policy Explain 40,

90, or 100 Percent of Performance?” (Ibbotson and Kaplan), 32

“The Dogs of the Dow,” 53–4, 75, 136See Dow Jones Industrial Average

DOL. See US Department of Labordollar-cost averaging (DCA), 35–6, 46,

53–4, 189defined, 189

Donna Karan cashmere sweater, 194Dooney & Burke, 120DOW. See Dow Jones Industrial AverageDow, Charles H., 189Dow Jones Industrial Average (DJIA or

DOW), 53–4, 75, 113, 136, 163–5, 186, 189

and “The Dogs of the Dow,” 53–4, 75, 136

See MarketWatchDow Jones US Large-Cap Growth Total

Stock Market Index, 113Dunn, Pattie, 68DuPont, 53

early adapter, 37–8earnings estimates, 189



INDEX 205

Eastman Kodak, 10, 55, 106economic sectors, 42–4, 52, 55–6, 62,

68–9, 81, 84–5, 88–9, 104–7, 112–14, 132, 137–46, 149, 154, 162, 170–2, 189–92

and banking, 81, 84, 88, 145–6, 170, 192and biotech, 62, 81, 154, 162and entertainment, 81and health care industry, 68–9, 84,

112–13, 140–5, 189–90and industrials, 68–9, 81, 84, 88, 146,

189–90and intelligent investing rule #6, 88–9and pharmaceuticals, 88, 140–5, 190and technology. See technology

education investment accountSee 529 College Savings Plan

eleven Intelligent Investing Rules, 2, 169–73

See Intelligent Investing RulesEllis, Charles, 70, 156Ellison, Larry, 137–9EMC Corporation (EMC), 139Employee Benefit Research Institute, 32ETFs, exchange-traded fundsEvans, Bob, 139exchange-traded funds (ETFs), 68–75,

77–8, 81–2, 85–6, 88–90, 92, 94, 99, 112–15, 127–9, 132, 141, 144, 146, 151–8, 172, 187, 190, 192

as antidote, 68–9and diversification, 73–4and fees, 69–71, 155–6lifetime, 151–8and pricing, 71–2as tax efficient, 72–3warning about, 74–5

Exxon Mobil, 104, 113

Facebook, 38, 113, 189FACTSET Dividend Quarterly, 160Fallen Angel growth stocks, 10, 59–60,

62–7, 74, 103, 105, 108–9, 112, 114, 119, 124, 134, 171, 190–1, 195

Fama, Eugene F., 40–1, 51, 54, 146, 153, 157

Fama-French capital-asset pricing model, 146, 153

“fast crowds,” avoiding, 24, 169favorableness, 19–20, 23FDIC, 16“fear of success,” 40Federal Reserve, 87fees, 69–71, 155–6, 172–3Fidelity Investments, 29Fidelity Magellan Fund, 38

Fidelity Research, 85Financial Advisor Magazine, 176Financial Analysts Journal, 51, 70, 77financial data, 45, 50–1, 60, 63–5, 75,

93–9, 111, 171, 183and Internet research, 95–8and the news media, 98–9as plentiful, 93–4and Stock Rover, 94–5See financial websites

financial goals, establishing, 25–36and asset allocation, 32–3and dollar-cost average, 35–6and life-cycle funds, 33–4and mental accounting, 26–9and retirement, 29–31

financial IQ, xi–xiii, 1–13, 175Financial Times, 17financial websites, 45, 50–1, 59, 62–5, 75,

93–9, 111, 141, 171, 183See Bloomberg.com; Seeking Alpha

five stock portfolio returns (April 11, 2003–April 12, 2013), 80

fixed income security (bond), 190Forbes, 139Fox Business News, 99“franchise value,” 101–3free cash flow, 137–9French, Kenneth R., 40–1, 51–2, 54, 146,

153, 157futures, 98–9, 190–1

gambling, 7–8, 16–17, 162–3, 168, 185GARP. See growth stocks at a reasonable

priceGates, Bill, 94GE. See General Electricgender, and brain wiring, 79–80Genentech (DNA), 80General Electric (GE), 53, 80, 147, 149GILD. See Gilead Sciences Inc.Gilead Sciences Inc. (GILD), 113, 145goals, financial, 36, 37–56, 170

and busy women, 46and dividends, 49–51and the Dow, 53–4and growth stock investing, 38–48and Intelligent Investment Rule #3,

36, 170and investment style, 39–40and personality biases, 37–9and price-to-sales ratio, 44–5and total returns, 51–3and value stock investing, 39–41, 47–9

Goldman, 192golf, 2, 151–2, 156, 158



206 INDEX

GOOGL. See GoogleGoogle (GOOGL), 104–5, 108–11, 113,

126, 139, 154, 168Google Maps, 104–5, 168Gorsky, Alex, 142–3great companies, 9–12, 36, 38–9, 47, 55–9,

63, 67–8, 102–3, 106–7, 109, 112, 131–50, 168, 172, 185

See lifetime stocksgrowth assets, 34, 191growth stock investing, 10, 38–48, 55–6,

58–9, 62–9, 74–5, 82, 87–8, 90, 97, 101–15, 119, 134, 148, 153, 171, 190–5, 198

growth stocks at a reasonable price (GARP), 41–2, 58–9, 66–8, 74–5, 82, 90, 190–2

GuruFocus, 97, 106, 183

Haugen, 41health care industry, 68–9, 84, 112–13,

140–5, 189–90See Johnson & Johnson

Heartland Funds, 51–2, 160hedge fund, 18, 140, 191heuristic, 18–19, 192Hewlett-Packard, 53, 108Home Depot Inc., 62Honeywell International, 50Hood, L. Randolph, 77Horner, Matina, 40Hough, Jack, 138

Ibbotson, Roger G., 32–3Ibbotson Associates, 41IBM, 7–8, 52, 132, 139, 148–9, 194Icahn, Carl, 106IJR. See iShares Core S&P Small Cap (ETF)index fund, 192individual retirement account (IRA), 27,

91, 162industrials, 68–9, 81, 84, 88, 146, 189–90Industries in the Consumer Discretionary

sector, 85information technology, 84, 104, 112–14,

137, 154, 189–90INTC. See Intel Corporationinitial public offering (IPO), 43, 129,

192, 197Intel Corporation (INTC), 53, 113,

132, 139Intelligent Investing rules, 2, 9–11, 24, 36,

40, 49, 66–7, 88, 99, 112, 129, 145, 147, 156, 159, 169–73

Rule #1 (discipline), 9–12, 40, 147, 169

Rule #2 (avoiding fast crowds), 24, 169Rule #3 (life goals), 36, 170Rule #4 (diligence), 49, 170Rule #5 (research), 66–7, 170–1Rule #6 (diversification), 88, 171Rule #7 (financial websites), 99, 171Rule #8 (valuation), 112, 171–2Rule #9 (iteration), 129, 172Rule #10 (great companies), 145, 172Rule #11 (fees), 156, 172–3last rule (price and yield), 173

“Investing for a Distant Goal: Optimal Asset Allocation and Attitudes toward Risk” (TIAA-CREF) (study) (1998), 32

Investment Company Institute, 32investment discipline, 1–13, 16, 18–19,

22–4, 28–9, 37–75, 101, 129, 147, 166–8, 169–70, 176–7

and advisors, 176–7and attitude, 1–13and biases, 23and goals, 37–56and Intelligent Investment Rule #1, 9–12,

40, 147, 169and market forces, 18–19and objectives, 24and saving, 9–10, 28–9and staying the course, 10–12, 166–7and stock market, 57–75

investment IQ, xi–xiii, 1–13, 175“Investment Management Fees Are (Much)

Higher Than You Think” (Ellis) (2012) (paper), 70, 156

investment strategy, 1–13, 18–19, 23–4, 26–7, 32–6, 37–56, 65, 77–8, 85, 89–90, 92, 97–9, 102–4, 107, 110, 127, 134, 137–9, 164, 166, 169, 172, 177, 192

and acquisitions, 110, 137defined, 192and external factors, 18–19and goals, 37–56and intelligent investing rules, 169, 172and mental accounting, 26in real time, 102–4and saving, 1–13and stock allocations, 32See diversification

investment terms (glossary), 185–98investment websites (list), 183

See financial websitesiOS software release, 104iPad, 37, 103, 111, 149iPhone, 37–8, 103–7, 111, 149iPhone 5, 104–7, 111



INDEX 207

IPO. See initial public offeringiPod, 106IRA. See individual retirement accountiShares, 68, 74, 112–13, 127–8, 157–8iShares Core S&P Small Cap ETF (IJR),

157–8i-Shares Global Consumer Discretionary

Stock ETF (RXI), 127–8iShares S&P 500 Growth ETF (IVW),

113–14iteration, 129, 172IVW. See iShares S&P 500 Growth ETF

Jahanshad, Neda, 79JNJ. See Johnson & JohnsonJobs, Steve, 103–4Johnson & Johnson (JNJ), 53, 114, 140–4,

146, 149, 190Journal of Portfolio Management, 81JPM. See JPMorgan ChaseJPMorgan Chase (JPM), 145, 192“Judgment under Uncertainty: Heuristics

and Biases” (Tversky and Kahneman) (1974), 18–19

JWN. See Nordstrom

Kahneman, Daniel, 18, 30Kaplan, Paul D., 32Kate Spade, 120Kilbride, Don, 48Kinnel, Russel, 71, 156KO. See Coca Cola CompanyKORS. See Michael KorsKoski Research, 29

Lakonishok, Josef, 41“Leveling the Playing Field” (study)

(2010), 4life goals, 26, 36, 42, 124, 129, 136, 170life-cycle funds, 33–4lifetime ETFs, 151–8

and diversification, 158and fees, 155–6and the IJR, 157–8and the QQQs, 154–5and the VIG, 156–7and the VOO, 152–4

lifetime stocks, 131–50and being diligent, 147–50and brand dominance, 133–6and free cash flow, 137–9and iconic brands, 140–5and information technology, 137and research, 145–6and soft drink industry, 132–3

See blue-chip stocks; lifetime ETFsListerine, 141long positions, 191–2Lopez, Nancy, 156Lusardi, Annamaria, xiiLynch, Peter, 38, 56, 58, 67, 105–6

MA. See MasterCardMacy’s, 63, 86Madoff, Bernie, 181Malkiel, Burton, 32–3Man Down (Abrams), 18market capitalization (“market cap”), 41,

104, 126, 192–4MarketWatch, 96–7Massachusetts Institute of Technology Sloan

School of Management, 40MasterCard (MA), 145Mather, Celia, 17MCD. See McDonald’sMcDonald’s (MCD), 50, 53, 62, 136, 156

Annual Report (2012), 50McGraw Hill Financial, 84McKinsey and Company, 152Mensa, 175mental accounting, 26–9Merck & Co. (MRK), 53, 145Michael Kors (KORS), 86, 119–20,

122, 126Microsoft, 53, 113, 132, 154middle class, 135Mitchell, Olivia S., xiiMKTG. See Responsys Inc.MMM. See 3M Companymomentum, 10, 38, 46, 104, 124, 126,

134, 192–3momentum investors, 192–3Money magazine, 104Morningstar, 69, 71, 83, 156Morningstar FundInvestor, 71Morningstar Principia Pro, 83Motrin, 141MP3 player, 106MRK. See Merck & Co.multiple expansion, 107–8, 193mutual fund, 68–73, 83, 152, 155–7, 179,

187, 190–3

NASDAQ. See National Association of Securities Dealers

National Association of Securities Dealers (NASDAQ), 68, 74, 88, 113, 148, 154, 156, 186, 193–4, 197

Nasdaq-100 Index, 113National Council for Research on Women, 17



208 INDEX

National Council on Economic Education, xii

NAV, 190NFLX. See Netflix“negative success imagery,” 40Netflix (NFLX), 43–4New York Stock Exchange (NYSE), 193–4, 197The New York Times, 142news media, 98–9

See financial dataNike, 43, 62, 86, 112, 132Nobel Prize in Economic Sciences, 70, 156Nolan, Francie, 2–3Nordstrom (JWN), 43, 62–5, 86, 112,

121–2, 138Nordstrom Rack, 63, 65NYSE. See New York Stock Exchange

Odean, Terrance, 16–17O’Higgins, Michael, 53One Up on Wall Street (Lynch), 38opportunity cost, 6, 8, 34, 194Oracle (ORCL), 137–9, 149ORCL. See Oracleoverconfidence, 15–18, 42, 57

p/e. See price-to-earnings ratiop/s. See price-to-sales ratioPalmer, Russell E., 22Patton, Jr., George S., 166–7payout ratio, 160–1, 188PEG. See price/earnings-to-growth ratiopension, 31, 77, 187–8Pepsico, 114, 156PFE. See Pfizer, Inc.Pfizer, Inc. (PFE), 53, 145PG. See Proctor & Gamblepharmaceuticals, 88, 140–5, 190Polaroid, 10, 106“portfolio alpha,” 117portfolio turnover, 17, 152–3, 157, 179, 194portfolios, 17, 77–92, 117, 152–3, 157,

179, 194and asset allocation, 78–80, 89–90and diversification, 82–3and ETF-only portfolio, 88–9and guidelines, 83–6and tax strategy, 90–2and time horizon, 86–8

Post-it Notes, 146PowerShares QQQ, 74, 112–13, 154–7price and yield, 173price appreciation, 10, 39, 48, 55, 103price/earnings-to-growth ratio (PEG),

61–2, 64, 109, 131

price-to-earnings ratio (p/e), 59–62, 64, 96, 107–9, 121, 126, 131, 136, 138, 144, 189, 193–5, 198

price-to-sales ratio (p/s), 44–6, 64, 108–9, 122, 131, 195

Proctor & Gamble (PG), 136, 156product liability, 140–5professional investment advisor, 16–17,

155–6, 175–82and compensation structure, 180–1and fees, 155–6and investment discipline, 176–7and strategy and stocks, 177–9and style and risk parameters, 179–80and track record, 180and trust, 181–2women’s relationships with, 16–17

protection assets, 195protection-seeking investments, 34proxy statement, 195Prudential research survey “Financial

Experience & Behaviors Among Women,” 15–16, 18, 29

PSR. See price-to-sales ratio

QQQ. See PowerShares QQQquadrants of measurement (Brinson’s), 78QUALCOMM Inc., 113Quinn, Jane Bryant, 32–3

recency effect, 20–1, 23, 44, 104, 177, 196recommended stock allocations for future

goals (table), 32regression to the mean, 195research, 66–7, 93–9, 161–2, 170–1

and portfolio management tool, 94–5See financial data; financial websites

Responsys Inc. (MKTG), 138retirement, 3–5, 21, 25–34, 69–70, 86, 88–9,

102–3, 115, 124, 150, 155–6, 187–8and financial goals, 29–31and investment account, 88–9plan, 187–8

reversion (or regression) to the mean, 20–1, 23, 55, 111, 147, 177, 195

Richards, Ann, xiiirisk tolerance, 9–10, 89, 125“risk-on” hedge fund, 18Roche Holdings, 80Rogers, Ginger, xiiiRXI. See i-Shares Global Consumer

Discretionary Stock ETF

S&P 500. See Standard & Poors 500 Indexsampling size, 19–21, 23, 163–4



INDEX 209

Samsung, 103, 111Sarofim, Fayez, 133saving, 1–13, 28–9savings investment account, 89SBUX. See Starbucks Corp.SCHG. See Schwab US Large-Cap Growth

ETFSchultz, Howard, 11Schwab, 27, 74, 112–14Schwab US Large-Cap Growth ETF

(SCHG), 113–14Schwert data, 51Scotch tape, 146SEC. See Securities and Exchange

Commission“secular trend,” 117Securities and Exchange Commission

(SEC), 186, 195Seeking Alpha, 64–5, 96–7sell-side analyst, 96, 189, 196“sell-side” firms, 187share repurchase programs, 105, 196Sharpe, William F., 70, 156short position, 197Siebert, Muriel, 67, 168Siegel, Jeremy, 22–3, 51, 153Sirius XM, 99“Six Stocks That Could Double in Five

Years” (Hough), 138smart money, 125, 154, 197SmartTalk, 162Social Security, 25Soe, Aye, 155soft drink industry, 132–3Southwest Airlines, 138SPDR (the “Spider”) (ETF), 68spending as anti-saving, 5–6Splenda, 141“sport” of investing, 16–17Squawk Box (CNBC), 98Standard & Poors 500 Index (S&P 500),

7–8, 11, 35–6, 43, 59–61, 60–1, 64, 68, 71, 73, 80, 84–5, 88, 90, 96, 103, 105, 108, 110–11, 113, 118, 121, 128, 133, 136–44, 152–7, 160–1, 163, 167, 186, 192, 194, 196

between 1926 and 2010, 35–6in 2008, 8defined, 196Dow Jones Index website, 84and IVW, 113p/e of, 60–1, 64, 96, 108performance of (2003–2013), 80and sector weightings (2013), 84and soft drink industry, 136

and the SPDR, 68and the VOO, 152–7

Stanford University, 70Starbucks Corp. (SBUX), 10–11, 38, 62, 66,

112, 132, 136stock (equity), 197stock market, 57–75, 131–50

and brand dominance, 133–6and diligence, 147–50and exchange-traded funds (ETFs),

68–75and Fallen Angel growth stock, 62–7and free cash flow, 137–9and futures, 98–9and information technology, 137and lifetime stocks, 131–50and long-term performance, 67–71and methods, 59–60and P/E example, 60–1and the PEG, 61–2and product liability, 140–5and research, 145–6and soft drink industry, 132–3and timing, 146–7See lifetime stocks

Stock Rover, 94–5stock tickers, 10, 43–4, 80, 103, 108, 114,

118–19, 121, 132, 136–40, 145–6, 162, 197

Stocks for the Long Run (Siegel), 22Stone, Glenda, 17“Surprise! Higher Dividends = Higher

Earnings Growth” (Arnott and Asness) (article) (2003), 161

sustainable earnings growth, 48–50, 135, 160, 188

tax efficiency, 53, 72–3, 133tax loss harvesting, 198tax lots, 92, 197–8tax strategy, 90–2technology, 42–4, 55–6, 81, 84–5, 88,

104–7, 112–14, 137–41, 149, 154, 189–90

See Apple; OracleTesla Motors, 38TIAA-CREF, 32–3Tiffany & Co., 62, 74, 84–6, 112,

121–2, 192total return, 12, 24, 33–4, 48–53, 55–6,

66, 69–71, 74, 77–8, 81, 90–1, 112, 115, 118, 149, 155–60, 165, 169, 172, 179–80, 187, 194, 197

and dividends, 51–3for Dow Jones (1987–2013), 165



210 INDEX

“Trading Deck” (MarketWatch), 96“Trading is Hazardous to Your Wealth”

(Barber and Odean) (article), 17trailing twelve months (TTM), 59, 122, 161TTM. See trailing twelve monthsTversky, Amos, 18–19, 23, 30Twitter, 38Tylenol, 141–2, 144

UK Women’s Enterprise Taskforce, 17Under Armor, 86University of California, Los Angeles

(UCLA), 3, 30, 79Anderson School of Management, 3

University of Chicago Graduate School of Business, 40

University of Southern California, 79US companies, 50, 53, 73, 196

See Standard & Poors 500 IndexUS Department of Labor (DOL), 69US Dividend Achievers Select Index, 156US Naval Academy at Annapolis, 28

V. See Visavaluation, 20, 36, 44–5, 49–52, 55, 58–67,

82, 86, 90, 95, 101–4, 107–12, 115, 120–3, 125, 129, 132, 154, 159–61, 170–2, 191, 195

and competition, 108–11and dividends, 49–51, 159–61and Intelligent Investment Rule #8, 112,

171–2and investor expectations, 107–8and p/s ratio, 44–5

“value equation,” 67–8value stock investing, 37–41, 47–51, 55–6,

59, 67, 74, 134, 161, 164, 166, 198defined, 198and dividends, 49–51and great companies, 47–9versus growth stock investing, 40–1and personality bias, 37–9warning for, 55and Warren Buffett, 67

value traps, 101–2“Value versus Growth: The International

Evidence” (study) (Fama and French) (1998), 40–1

Vanguard, 48, 74, 112–14, 127–8, 152–7Vanguard Consumer Discretionary ETF

(VCR), 127–8Vanguard Dividend Appreciation ETF

(VIG), 156–7Vanguard Dividend Growth fund, 48Vanguard Growth ETF (VUG), 114

Vanguard S&P 500 ETF (VOO), 152–7VCR. See Vanguard Consumer Discretionary

ETFVerizon Communications, 53VHT, 144VIG. See Vanguard Dividend

Appreciation ETFVisa (V), 145Visine, 141volatility, 43–4, 46, 53, 56, 67, 74, 77,

113–15, 128, 142, 150–7, 180, 186, 198

VOO. See Vanguard S&P 500 ETFVUG. See Vanguard Growth ETF

Wall Street, 104, 106–7, 166–7, 187, 197The Wall Street Journal, 29, 79, 93, 96,

111, 152The Wall Street Transcript, 80WalMart (WMT), 38, 43, 62, 114, 136, 156Walt Disney Company (DIS). See Disneywealth accumulation, 1–13

and habit of saving, 2–3and investment discipline, 9–10and risk tolerance, 9–10and saving, 4–9, 12–13and staying the course, 10–12

web-based stock research, 95–8See financial websites

Weiss, Geraldine, 49Wells Fargo (WFC), 68, 145–6Wells Fargo Investment Advisors, 68WFC. See Wells Fargo“Why Fund Management Suits the High-

Achieving Women of Financial Services” (Mather), 17

WMT. See WalMartwomen and investing, 15–24

and behavioral economics, 19–21and bias, 23–4and long-term investments, 22–3and market forces, 18–19and natural expertise, 24and overconfidence, 16–18

“Women in Fund Management” (study) (2009), 17

The Writing Life (Dillard), 131WYNN. See Wynn ResortsWynn Resorts (WYNN), 162–3

Xerox, 106

Yahoo! Finance, 45, 62, 95–7, 107–9, 114–15, 122, 123, 141–3, 183

Yale University, 94


The Women's Guide to Successful Investing

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