Buy and Hedge: The 5 Iron Rules for Investing Over the Long Term

by Jay Pestrichelli

If you're trying to build wealth, sharp market downturns are your worst enemy. And today, they're happening far more in the last 18 years, the S&P 500 has experienced sixteen violent market declines. Institutions and professional investors have mastered powerful hedging strategies for dramatically reducing the risks of market volatility. Now, you can do it, too--and you can't afford not to. In Buy and Hedge , two leading investment experts show how to apply hedging as part of a long-term program for growing and preserving your assets. CNBC Fast Money guest Jay Pestrichelli and seasoned financial industry veteran Wayne Ferbert show how to systematically protect yourself against violent downward moves while giving your portfolio maximum room to run in upward markets. The authors' techniques are easy to use, can be applied to most investment vehicles, and require surprisingly little "care and feeding" once implemented. You'll discover how - Take advantage of the hedge-building mechanisms built into low-cost index funds - Invest in your ideas with confidence, because you've hedged the downside - Systematically manage portfolios for risk as well as return - Master and apply the "5 Iron Rules of Buy & Hedge" - Use options to manage risk, not to create excess leverage - Generate more dividends - Effectively manage cash

Genres: Finance, Business, Ebooks, Reference, Economics

304 pages, Kindle Edition

First published September 1, 2011

Reviews

[Kevin · Rating 3 out of 5]

Buy and Hedge does a thorough job explaining what options are and how to use them to limit the downside risk of you investments. While the concepts of their strategy work in theory, it seems like they only make sense for very large investments. The commission costs from constantly buying options does not make it a effective technique for hedging on the scale of an average investor's portfolio.

[Ryan Cox · Rating 4 out of 5]

Fundamentally, this book gives really good advice. And as CCU alumni, I love their ties to Joe Moglia. I had a hard time following everything past the concepts themselves. But I won’t hold that against my rating. As a holder of some YieldMax ETFs that Jay runs, it would be nice if he wrote another book about YieldMax and maybe even hedging with high yield investments.

[Sam · Rating 4 out of 5]

It has some very interesting and useful strategies, but it was a bit drawn out.

[Michael Cloin · Rating 4 out of 5]

I was fortunate enough to choose this book while they were giving it away on Amazon.

It explained the details around various trading strategies using options. It did not over-complicate the subject but provided enough information to serve as a reference long after I finished the book.

I can't say that I have made millions of dollars by trading options but this book has been extremely valuable as part of my trading toolset.

[Ken · Rating 3 out of 5]

This book offers details and strategies on protecting your investments through hedging to reduce the risk in your portfolio. While I do think the 5 iron rules are great, the strategies discussed in the book could end up quite expensive to execute. So before you implement the strategies, you got to take a look at your portfolio and ask how much you are willing to risk.

[Traven Teng Teck Poh Poh · Rating 5 out of 5]

I have read many books on Options and by far this is the best.
Not only does the author managed to explain it well, the examples are relevant and easy to understand (though I will still need to read it a few times more to really digest it well)
Strongly recommending to anyone who wishes to use Options to Hedge their investment !

Ohya, one of my fav strategies mentioned is the Portfolio Put !