Review: The Little Book of Alternative Investments: Reaping Rewards by Daring to Be Different

The Little Book of Alternative Investments: Reaping Rewards by Daring to Be Different by Ben Stein
My rating: 3 of 5 stars

Stein and DeMuth start this volume with the understanding that the reader is willing to invest in non-traditional assets. By non-traditional, we aren’t talking stocks and bonds and cash interest-bearing investments. We are talking commodities, collectibles, gold, real estate, and other investments that have lower correlations to the market, the thought being that investing in multiple asset classes that have low return correlation is a way to have a higher return for a given level of risk. Most of the book takes these assets and combines them using hedge funds as examples of investments to handle this complexity. The authors include a large list of hedge funds and other investments, with short descriptions and short bits of financial advice. I believe that the kind of advice you would get often changes over time, as investment funds change styles, rules, ownership, expenses, and returns. This advice was probably good when written, but aging rapidly. Is it worth it to read the book given the age of the advice? I think the beginning, which describes the benefits and issues with different investment asset classes, is still good, but the second half could be skimmed unless you want to hear lists of various types of “styles”. I found the second half interesting, but overwhelming on audio. If you want to think through these investments, I’d recommend the paper book over the audio. If you want a lay of the land, listening to the audio of the first half would cover your needs.

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