Rating: 
Summary: Insightful!
Review: Decades of research by scholars and financial practitioners have generally supported the reasonable counsel "don't put all your eggs in one basket." But it is one thing to advise investors to diversify, and another to show them how. Author David M. Darst outlines a systematic approach to parceling out your savings among different investment assets. There's a science to asset allocation, though its principles are not immediately apparent. Darst treats these precepts with admirable thoroughness in a book that is, mostly, accessible to an educated layperson. But brew some strong coffee. Readers lacking a business or finance background may find the theoretical discussion difficult and tedious, particularly given the deliberate style. However this 2003 book follows one of the most dramatic periods in stock market history, the 1990s, when even sophisticated market watchers wondered if the sound financial principles cited here still applied. The ensuing bear market made it clear that the laws of risk and return had not yet been repealed. In this atmosphere, We welcome this solid explanation of risk and return.
Rating: 
Summary: genius
Review: I think some of the other reviewers are missing the point of this book. Does he suggest an advisor?, yes. Do you absolutely need an advisor?, no. But if you were sued tomorrow for all that you had, would you crack open the law books and get ready for court or would you hire someone who is a professional. Now I will admit the area of financial advice is laden with salespeople...there are bad doctors, lawyers(that goes without saying...haha), even teachers, and priests....but there are also people who know what they are doing and talking about. I think it would be useful to you to read this book, not trying to become an expert, but rather to serve as your guide to find an expert. This book will teach you the jargon and philosophy of a prudent investor...ask a few questions from the book and quickly you will see who is an advisor and who is a salesperson.
and For those of you on the real estate kick let me remind of three things...1) history is a good teacher, while not perfect history does show more reward for equities than real estate but buy at least one house, 2)things always revert to the mean (if you don't know what this means please buy this book now), 3) this time is NOT different. And yes my house has doubled in the last two years too. Find great investors and learn from them.
Rating:
Summary: genius
Review: I think some of the other reviewers are missing the point of this book. Does he suggest an advisor?, yes. Do you absolutely need an advisor?, no. But if you were sued tomorrow for all that you had, would you crack open the law books and get ready for court or would you hire someone who is a professional. Now I will admit the area of financial advice is laden with salespeople...there are bad doctors, lawyers(that goes without saying...haha), even teachers, and priests....but there are also people who know what they are doing and talking about. I think it would be useful to you to read this book, not trying to become an expert, but rather to serve as your guide to find an expert. This book will teach you the jargon and philosophy of a prudent investor...ask a few questions from the book and quickly you will see who is an advisor and who is a salesperson.
and For those of you on the real estate kick let me remind of three things...1) history is a good teacher, while not perfect history does show more reward for equities than real estate but buy at least one house, 2)things always revert to the mean (if you don't know what this means please buy this book now), 3) this time is NOT different. And yes my house has doubled in the last two years too. Find great investors and learn from them.
Rating:
Summary: On the advice of a friend, I made millions
Review: My boss at work recommended this to me and in the space of a few short weeks, I started making a real killing. I should be able to retire in the not too distant future and leave the rest of those rubes slaving away.
Thanks Mark!
Rating:
Summary: Incredible Learning Awaits You - and Such Great Writing!
Review: The Art of Asset Allocation stands as the guide to asset allocation - and so much more. So, in finance, asset allocation is what it is ALL about. I actually didn't realize the extent to which this was true until I finished Darst's book. What incredible learning! My book initially fell open at page 216 - I first read through page 246 - in my view, these 30 pages are the tour de force of the book, as Darst expertly describes - in the most clear, crisp, this-is-it terms, for every asset class, definable characteristics, rationale for investment, and risks and concerns. Would that my finance professors had had Darst's book! Darst's book has been termed an indispensable map of the Wall Street investing landscape, and indeed, this is not hyperbole. Not only does Darst take the reader through this important topic sagely, wisely, and comprehensively, Darst makes the topic entertaining and highly interesting. What a persuasive writer. What a treat you have in front of you! I find such fantastic writing rare among even the most well known authors and especially unusual among business writers - his style carries you through the book, from "Understanding Asset Allocation" to "Financial Market Analysis and Investment Insights." To boot, the book is quite tactical - I've already made some shifts in my portfolio that I expect ultimately to be quite fruitful and productive. In particular, I found particularly useful "Establishing a Quantitative and Qualitative Decision Framework" and the "Foundations of Asset Allocation" - the exhibits throughout the entire book, in fact, are worth their weight in gold and if you literally only had time to read the exhibits in the book, you would be far better off than before! I recommend reading the chapters sequentially for nine days over coffee and pancakes (a different type every day) - that's what I did for the last nine mornings and I feel immeasurably better off. I learned most about asset under- and over-weighting and asset class weightings in varying economic conditions, and look forward to making more changes in my portfolio based on my vast recent learnings. Run, do not walk, to get this book! While ordinarily I advise getting books at the library, this is a book one must own and pass on to future generations.
Rating:
Summary: Incredible Learning Awaits You - and Such Great Writing!
Review: The Art of Asset Allocation stands as the guide to asset allocation - and so much more. So, in finance, asset allocation is what it is ALL about. I actually didn't realize the extent to which this was true until I finished Darst's book. What incredible learning! My book initially fell open at page 216 - I first read through page 246 - in my view, these 30 pages are the tour de force of the book, as Darst expertly describes - in the most clear, crisp, this-is-it terms, for every asset class, definable characteristics, rationale for investment, and risks and concerns. Would that my finance professors had had Darst's book! Darst's book has been termed an indispensable map of the Wall Street investing landscape, and indeed, this is not hyperbole. Not only does Darst take the reader through this important topic sagely, wisely, and comprehensively, Darst makes the topic entertaining and highly interesting. What a persuasive writer. What a treat you have in front of you! I find such fantastic writing rare among even the most well known authors and especially unusual among business writers - his style carries you through the book, from "Understanding Asset Allocation" to "Financial Market Analysis and Investment Insights." To boot, the book is quite tactical - I've already made some shifts in my portfolio that I expect ultimately to be quite fruitful and productive. In particular, I found particularly useful "Establishing a Quantitative and Qualitative Decision Framework" and the "Foundations of Asset Allocation" - the exhibits throughout the entire book, in fact, are worth their weight in gold and if you literally only had time to read the exhibits in the book, you would be far better off than before! I recommend reading the chapters sequentially for nine days over coffee and pancakes (a different type every day) - that's what I did for the last nine mornings and I feel immeasurably better off. I learned most about asset under- and over-weighting and asset class weightings in varying economic conditions, and look forward to making more changes in my portfolio based on my vast recent learnings. Run, do not walk, to get this book! While ordinarily I advise getting books at the library, this is a book one must own and pass on to future generations.
Rating:
Summary: A Masterpiece of "Art" and "Asset Allocation"
Review: The author is able to synthesize two worlds in a way that will also appeal to minds that come from two different worlds, and everything in between.
A trader I once worked with said that there are two disctinct realities when it comes to finance, "Main Street" and "Wall Street", and they could not be more different.
Perhaps for the first time, someone makes the two differening perspectives and positions accesible, as it regards the very challenging concept of Asset Allocation for a firm foundation in financial strategies, to anyone who is willing to make the "Investment" in themselves to learn about this crucial topic.
We live in a world where economics are inescapable, and to allow anyone from the most left leaning artist, to the most conservative Straussian pragmatist, access and explanations to some of these previously arcane principles is nothing short of extra-ordinary.
If you have any desire at all to learn and advance yourself by understanding and perhaps steering your own financial future, this is one of the keystone works to study.
I now know that I _must_ find, read, and study the author's other books.
Rating:
Summary: Another Asset Allocation Book
Review: There is one amusing fact about this book in particular. It is obvious to the sophisticated investor that the author works for an investment house that has something to sell. No attempt is made to directly sell anything but it definitely is an attempt to show the average investor why he needs someone else to do his asset allocation. Hardly a guide to indexing, the author advocates tactical allocation as well as strategic allocation. The problem with this is that tactical allocation is little more than trend following in the guise of asset allocation. Since the market has been down and many have had their rear ends shot off by the market asset allocation is the byword of the day. More sophisticated asset allocation advocates have long realized that their art hardly appealed to the masses. The addition of the ability to knob twiddle the allocation is an attempt not only to add a little spice to the mixture but to also advocate the need for an advisor. From what I can see the bait is being taken. William Bernstein advocated a little tactical reallocation on occasion in the guise of rebalancing. Rebalancing is great and necessary but trying to optimize the portfolio to catch the next wave is a fool's errand. Darst is somewhere in the middle of this argument. That said, the book contains some useful information. There is a description of the various asset classes and their advantages and disadvantages which is excellent. Those who are looking for an real estate investment handbook will be disappointed however. The calculation of alpha is described and mean variance optimizers are discussed (there is even a little about their limitations). The entire book reads a little like a sales brochure. Complicated graphical and pictoral representations are used to present simple ideas. Some of the statistics is biased towards what you would expect from a financial advisor. Most of this is subtle and may not be deliberate on the part of the author. But it is fascinating to compare this information with that of Bernstein and realize that even if it is unconcious an attempt is being made to create a dependency. Once a salesman always a salesman? Anyhow, this book combined with the Intelligent Asset Allocator and Gibson's Asset Allocation will be all any investor needs to properly allocate their wealth without an advisor if so desired. But anyone who read widely about asset allocation will also realize that no book will tell them how to allocate their assets: it is an art. Mean variance optimizers are mostly useful for educational purposes. Also not all of the asset classes discussed are appropriate for anyone let alone the rich. Just remember the concept of the whale.
Rating:
Summary: Another Asset Allocation Book
Review: There is one amusing fact about this book in particular. It is obvious to the sophisticated investor that the author works for an investment house that has something to sell. No attempt is made to directly sell anything but it definitely is an attempt to show the average investor why he needs someone else to do his asset allocation. Hardly a guide to indexing, the author advocates tactical allocation as well as strategic allocation. The problem with this is that tactical allocation is little more than trend following in the guise of asset allocation. Since the market has been down and many have had their rear ends shot off by the market asset allocation is the byword of the day. More sophisticated asset allocation advocates have long realized that their art hardly appealed to the masses. The addition of the ability to knob twiddle the allocation is an attempt not only to add a little spice to the mixture but to also advocate the need for an advisor. From what I can see the bait is being taken. William Bernstein advocated a little tactical reallocation on occasion in the guise of rebalancing. Rebalancing is great and necessary but trying to optimize the portfolio to catch the next wave is a fool's errand. Darst is somewhere in the middle of this argument. That said, the book contains some useful information. There is a description of the various asset classes and their advantages and disadvantages which is excellent. Those who are looking for an real estate investment handbook will be disappointed however. The calculation of alpha is described and mean variance optimizers are discussed (there is even a little about their limitations). The entire book reads a little like a sales brochure. Complicated graphical and pictoral representations are used to present simple ideas. Some of the statistics is biased towards what you would expect from a financial advisor. Most of this is subtle and may not be deliberate on the part of the author. But it is fascinating to compare this information with that of Bernstein and realize that even if it is unconcious an attempt is being made to create a dependency. Once a salesman always a salesman? Anyhow, this book combined with the Intelligent Asset Allocator and Gibson's Asset Allocation will be all any investor needs to properly allocate their wealth without an advisor if so desired. But anyone who read widely about asset allocation will also realize that no book will tell them how to allocate their assets: it is an art. Mean variance optimizers are mostly useful for educational purposes. Also not all of the asset classes discussed are appropriate for anyone let alone the rich. Just remember the concept of the whale.
Rating: 
Summary: Okay, but for the individual investor there are better books
Review: This book reads a little too much like a textbook. If I was a financial advisor, I would probably see more value in it. I preferred William Bernstein's "Intelligent Asset Allocator" to this book. Bernstein talks more directly to the small investor.
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