Investing in financial markets can feel complicated and chaotic, however, the key to long-term success lies in developing a sound investment philosophy. In his latest book, Trailblazers, Heroes, and Crooks: Stories to Make You a Smarter Investor, Stephen Foerster, award-winning author and finance professor at the Ivey Business School, takes readers on a journey through time, highlighting pivotal moments in history that offer timeless lessons for investors of all experience levels.
Foerster blends historical storytelling with practical insights, demonstrating how understanding past investment successes and failures can help you sharpen your own strategy. His book serves as a call for investors to temper their emotions and adopt a disciplined, evidence-based philosophy. As Foerster explains, “We don’t always act rationally when it comes to investing. We often get excited and look at investment opportunities through rose-colored glasses. We’re overconfident in our stock-picking abilities.”
From a 12th-century Venetian hostage crisis that gave birth to government bonds, to the infamous Coca-Cola press conference where Cristiano Ronaldo’s gesture appeared to cost the company $4 billion in stock value, Foerster weaves together engaging stories that reflect the human side of investing—complete with greed, mistakes, and the occasional triumph.
For novice investors in particular, one of the biggest challenges they face is diving into the market without understanding key principles like diversification, risk management, and the difficulty of beating the market. Without a structured investment philosophy, many fall victim to common biases, leading to costly mistakes. Foerster highlights these pitfalls through stories from history which demonstrate why having a guiding set of beliefs is crucial to long-term investing success. He poses important questions such as: "Are you confident—or perhaps overconfident—of your investing skills? What’s your approach to investing? Maybe you haven’t given it much thought. And yet, it matters."
For professionals, the book serves as both a reminder of the importance of these principles and provides anecdotes and wisdom from some of history’s greatest financial minds. Foerster’s stories offer a fresh perspective on investing, with lessons drawn from past events that are still relevant today.
Dean Connor, retired President and CEO of Sun Life Financial, highlights the value of Foerster’s approach: “For as long as there have been investments, people have tried to find a special edge, a way to earn superior returns. Stephen Foerster’s latest book offers us a riveting collection of cautionary investment tales and insights from the masters, making it a must-read for novice investors and financial professionals alike.”
Foerster’s previous book, In Pursuit of the Perfect Portfolio, co-authored with MIT’s Andrew Lo, was featured in The Wall Street Journal’s Bookshelf column and won the Axiom Business Awards silver medal in Personal Finance and Investing.
In a time when markets are unpredictable, the lessons in Trailblazers, Heroes, and Crooks are more valuable than ever. Foerster’s thoughtful approach helps investors of all stripes learn from history, temper their emotions, and ultimately make smarter, more informed financial decisions.
More about Stephen Foerster
Stephen R. Foerster is an award-winning author and professor of finance at the Ivey Business School at Western University in London, Ontario, Canada. Foerster has also written two textbooks and over 100 case studies and technical notes in the areas of investments and financial management. He has published over 50 articles including in the Journal of Financial Economics, the Journal of Finance and Financial Analysts Journal. Foerster has served on pension and endowment fund boards as well as not-for-profit investment committees. He received a PhD in Finance from the Wharton School, University of Pennsylvania and has obtained the Chartered Financial Analyst designation. He was the founding co-director of Ivey’s Women in Asset Management program.
Additional Praise for Trailblazers, Heroes and Crooks
“Being a good investor entails doing the right things and avoiding errors. This delightfully written romp through some of the bogus promises and spectacular frauds from Roman times to the present, will help investors steer clear of the common blunders that can ruin any investment plan.” — Burton G. Malkiel, author of bestseller A Random Walk Down Wall Street, 50th anniversary edition, 2023
“If you like to have fun and learn great lessons at the same time, this wonderful book is for you. Every beginner should start here. Every veteran will enjoy the accuracy of the great stories well told. All investors will benefit from the important life lessons that Steve Foerster reveals in story after story in this delightful collection.” — Charley Ellis, author of bestseller Winning the Loser's Game: Timeless Strategies for Successful Investing
“A fun and enjoyable compilation of investment stories, packed with practical insights, for students to the most seasoned investors, to become smarter investors. Trailblazers, Heroes and Crooks will become a go-to book to gift to family, friends and colleagues, to give them an entertaining read on investment philosophies and lessons learned from heroes to crooks throughout history. Loved it!” — Nicole Musicco, former chief investment officer at CalPERS
“Stephen Foerster extracts lessons from exceptional episodes in financial history that ordinary investors and seasoned professionals alike can put to profitable use. The bonus is that Trailblazers, Heroes, and Crooks is immensely entertaining from start to finish.” — Marty Fridson chief investment officer at Lehmann, Livian, Fridson Advisors LLC on CFA Institute’s Enterprising Investor
