"You must have long-term goals to keep you from being frustrated by short-term failures" — Charles C. Noble

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William Bernstein
Latest Podcast
Testimonial- Letter from a listener

William J. Bernstein is a neurologist, co-founder of Efficient Frontier Advisors, an investment management firm, and has written several titles on finance and economic history. He has contributed to the peer-reviewed finance literature and has written for several national publications, including Money Magazine and The Wall Street Journal.

He has produced several finance titles, and also three volumes of history, The Birth of Plenty, A Splendid Exchange, and Masters of the Word, about, respectively, the economic growth inflection of the early 19th century, the history of world trade, and the effects of access to technology on human relations and politics. He was also the 2017 winner of the James R. Vertin Award from CFA Institute.

His latest book, The Four Pillars of Investing, Second Edition: Lessons for Building a Winning Portfolio is the classic guide to constructing a solid portfolio—without a financial advisor!

William J. Bernstein has seen it all throughout his career. Buying investments with borrowed money. Chasing past performance. Overestimating one's own risk tolerance. Listening to cable news. These are just a few of the many mistakes he has witnessed smart, serious investors make, to the peril of their portfolios. Add to these behavioral errors such economic factors as deflation, sudden stock declines, and soaring inflation—and investing can seem like something to be avoided at all costs. But with the right discipline and knowledge, you can build and manage an impressive portfolio.

It all comes down to understanding four key pillars:

- Theory: Risk and return go hand in hand—you can't make money without risk

- History: Understand past markets to understand today's markets

- Psychology: Avoid the most common behavioral mistakes that tank portfolios

- Business: The cost of investment services can be high—unreasonably high

After taking you on a deep dive into each of these topics, Bernstein walks you through the process of designing and maintaining a powerful portfolio. Bill is also one of the smartest people I have ever met. Watch his video Lifecycle Investing : The Ages of the Investor.

Latest Podcast- The last step to successful investing

In this episode of Sound Investing, Paul Merriman opens with a heartfelt listener letter that underscores the real impact of financial education. The note compares Paul’s influence to that of industry giants John Bogle and Benjamin Felix—both considered “truth tellers.” From there, Paul turns to a powerful essay by Ben Carlson, The Evolution of Financial Advice, using history, math, and psychology to frame what he believes is the final step in successful investing.

The Listener’s Perspective
Paul shares the story of Aram, a physician in training, who reflected on his journey to financial literacy. Aram concluded that Merriman’s work—and the all-world value, four-fund, and small-cap value Portfolios built with best-in-class ETFs—had the greatest impact on his future. His testimonial illustrates how thoughtful portfolio design and discipline can transform an investor’s confidence.

Lessons from Ben Carlson
Carlson’s article traces 100 years of investing evolution, from the days when bonds were “investing” and stocks were “speculation,” through the birth of mutual funds, index funds, and today’s robo-advisors. His central lesson: to succeed, investors must combine an understanding of math, probabilities, and history with the psychological discipline to stay the course through booms and busts.

This historical lens reveals why staying invested, avoiding high fees, and resisting get-rich-quick schemes remain essential. It also shows how the industry has democratized access to wealth building over the past century.

Paul’s Conclusion: The Last Step
Paul emphasizes that nearly all the big steps to successful investing are well documented: start early, save consistently, choose stocks over bonds, use low-cost index funds, be tax smart, add small cap and value equity asset classes, avoid market timing, and stay the course. But two areas still require ongoing fine-tuning:

Portfolio Construction – Choosing the percentages of each equity and fixed income asset class, that belong in your portfolio.

Fund Selection – Deciding which ETFs or mutual funds give you the best exposure to those asset classes.

These two decisions, Paul argues, form the true “last step” to successful investing. They determine how much risk you carry, how diversified you are, and ultimately how well you’ll stay invested when the market tests your resolve.

Tools to Help You Take the Last Step
To guide investors in these critical decisions, Paul recommends three resources from the Merriman Financial Education Foundation’s Boot Camp:

Fine Tuning Your Asset Allocation

Fixed Contributions

Fixed Distributions

Together, these articles, podcasts and videos help investors match the right portfolio design with their goals, time horizon, and emotional temperament.

Testimonial

Dear Paul,

I'm a Resident Physician in training. Today, as I stepped out of the hospital, I was greeted by beautiful, sunny weather here in Connecticut. I looked up at the green trees and the blue sky and thought to myself—how truly happy I am.

I have a loving family. I work at a great hospital with supportive colleagues. My mother and brothers are healthy and doing well. And I know how to manage my savings.

As I reflected on my financial journey, I wondered: who has had the greatest impact on my financial literacy—Paul Merriman, John Bogle, or Benjamin Felix? Then I remembered that all my savings are equally distributed across Paul Merriman’s All-World Value, All-World Four-Fund, and All-World Small-Cap Value portfolios, using your best-in-class ETFs with a 60% U.S. / 40% international allocation.

And in that moment, I realized: you are the person who has had the greatest impact on my financial literacy.

Thank you, and God bless you.

Warm regards,

Aram Tonoyan

The last step to successful investing

Lifecycle Investing : The Ages of the Investor

How to retire with more money and greater peace of mind

In This EditionWilliam BernsteinLatest PodcastTestimonial- Letter from a listener

In This Edition
William Bernstein
Latest Podcast
Testimonial- Letter from a listener

The last 2 steps to investing success