Recenze knih
Book of the Month December 2026: Investment Strategy for the Third Millennium
Key takeaways
- Kohout's book brings modern portfolio theory in Czech — an exceptional combination of depth and clarity.
- The Czech perspective on taxes, currency, and local specifics makes it a practical guide for domestic investors.
- Suitable for investors who want to understand why diversification works, not just what to buy.
- The book does not rush to recommend specific stocks — it teaches thinking that holds for decades.
"Investment Strategy for the Third Millennium" by Pavel Kohout is probably the deepest book on portfolio theory and market behaviour written in Czech — and yet an investor without an economics background can read it cover to cover.
What the book is about
Pavel Kohout — an economist, analyst, and one of the most readable Czech authors writing about finance — builds on modern portfolio theory and expands it with a behavioural perspective. He explains why diversification is not just your grandmother's advice but a mathematically proven strategy. He works with historical data, regressions, and investor psychology — and yet stays readable throughout.
The Czech perspective as added value
Most global investing bestsellers (Bogle, Lynch, Graham) are written for the American investor. Kohout takes into account Czech specifics: the koruna, available instruments, the tax environment, and the historical experience of economic transformation. That is rare. If you want to think about CZK allocation or understand the quality of the Czech capital market, this book provides answers.
Key ideas from the book
- Risk cannot be eliminated — it can only be redistributed and compensated with return
- Diversification is the only "free lunch" in investing — scientifically verified
- Markets are efficient in the long run, but full of anomalies in the short run
- The average investor earns less than the average fund — because they buy and sell at the wrong time
Where to buy and what to read next
The book is available at Czech online bookshops. After reading it, I recommend following up with the book reviews section on Hřivna — you will find more recommendations there. If the discussion of allocation caught your interest, also read how to build your first portfolio or explore the return projections for different strategies.
FAQ
Who is the book suitable for?
Investors who want to understand the fundamentals of portfolio thinking — not just receive tips. Ideal after getting to grips with the basics of ETFs and before building your own strategy. No economics degree required.
Is the book still relevant?
The principles of modern portfolio theory, diversification, and behavioural finance are timeless. Specific examples and data may be older, but the logic and approach hold regardless of the era.
Where can I get the book?
At Czech online bookshops — Albatros Media, Kosmas, Databazeknih. An e-book version is available on most platforms. Older editions can also be found in second-hand bookshops at lower prices.
What are the alternatives for English-speaking investors?
"The Intelligent Investor" by Graham or "A Random Walk Down Wall Street" by Malkiel cover similar topics. Kohout's advantage is the Czech context and more accessible language for domestic readers.