Investment Discipline:
Making Errors Is OK, Repeating Errors Is Not OK

Buy at AmazonBarnes & NobleBalboa Press

image descriptionMany highly paid investment gurus will insist that successful investing is a function of painfully collected experience, expansive research, skillful market timing and sophisticated analysis. Others emphasize fundamental research about companies, industries and markets.

Based on his experience over 30 years in the investment industry, Gallati says the ingredients for a successful investment portfolio are stubborn belief in the quality, diversification, growth and long-term principles from Investments and Management 101. Unlike MBA textbooks, which tend to be more theoretical, Investment Discipline provides practical insights into what works and what does not based on his own successes and failures,  and includes recommendations of what to repeat and what to avoid.

Investment Discipline contains no secrets and no magic equations. It discusses the most common investor mistakes and provides advice on how to avoid these errors in order to become a successful investor. It will guide you in your decisions, from setting up your investment objectives, conducting research and buying/ selling securities to adjusting your portfolio to achieving long-term returns that match your personal financial objectives.

You will learn how to:

  • Define your investment profile and your specific objectives;
  • Establish a sustainable investment process based on your objectives;
  • Analyze information and perform your own research; and
  • Make sound investment decisions.

The book points out that even the world's most famous investment professionals, including Warren Buffett and Peter Lynch, from time to time make mistakes; however, they do not repeat them. They stubbornly adhere to their investment approach and appy discipline over a long time period, resulting in superior returns. Obviously successful investors are lucky as well; however, they play the numbers right, and over time their performance exceeds that of their peers.

In Investment Discipline, you will learn how to become a successful, disciplined investor.


"No equations, just sound thinking applied to the way people manage their money."