“High Returns from Low Risk” by Pim van Vliet is the most approachable book on the low volatility stock anomaly. Most investors will tell you that risk and return are two linked parts of investment – a willingness to take more risk delivers higher returns.
But is this always the case? Pim van Vliet doesn’t think so, and has built a large and successful funds management business out of his belief that assets that are lower risk deliver higher rewards than investment theory says they should. The book teaches you how to build low volatility equity portfolios that not only beat the market, but do so at lower levels . Here are five things that I learnt from this excellent book: .