Carlson argues that, in this unpredictable and erratic financial environment, one must adjust his or her strategies constantly in order to achieve their desired investment goals. Any savvy investor or professional money manager can suggest methods of building wealth, but what many of these market participants fail to address is the fundamentals to preserving this wealth. Emphasizing the mitigation of risk and prudent money management, Carlson shows us a way to accrue and maintain wealth -- all in a clear voice that can be understood by even a beginning investor, but which will be helpful to long-timers too.

According to Carlson, the key to attaining wealth and success lies in one's ability to abandon the inflexible values that characterize what he calls a "hedgehog" and attain the adaptability of a "fox."

Carlson defines his two investor "animals" as follows:

The Hedgehog:

• Possesses an inflexible way of thinking and tenaciously sticks with one strategy,
• ignores the constant changes in today's active financial markets.
• Thinks the world is more explainable, more logical and, hence, more predictable than it actually is
• Constantly searches for ways to identify trends and overstatement signals which are subject to misinterpretation and
• Relates everything to a single vision
• Rolls itself into a ball when attacked -- in other words, doesn't face up to challenging markets
• Tries to justify their mistakes with an excuse
  

The Fox:

• Dynamic, flexible, counterintuitive and always attentive to the market, its potential volatility (uncertainty), and its surroundings
• Has the ability to constantly adapt and adjust his or her strategies to new information and changing markets, while making the most of new developments and trends
• Pursues various ends, and thinks and acts on many levels
  
• Is eclectic in his or her thinking, with an emphasis on how to think and decipher problems rather than what to think
• Learns from experience, acknowledges mistakes in previous forecasts, and embraces fresh ideas
  

The fox's cunning and eclectic style enables it to adapt and adjust strategy, and thereby to slip through the frantic herds of bulls and bears that cause the market to swing one way or another. This vibrant herd of wild beasts is
constantly in motion. At times the herd is lead by the bulls, and at other times by the bears. One must approach this herd with an open mind, acknowledging the fact that things could change at any moment. As the herds of bulls and bears shift their position, closing some of the existing opportunities while creating new ones, the inflexible hedgehog's inability to process, react, and adapt to the new movements and adjustments of the herd prevents him from finding a path out of the stampede. When the bears start dominating, the hedgehog is stuck investing like a bull, and vice versa. Even if the hedgehog has made money for a time, his intransigence
prevents him from maintaining that wealth when the market turns. The fox is able to adjust and to preserve his gains.

In addition to distilling investing into this charming and effective animal model, Carlson spends a considerable amount of time explaining in detail how today's investors misuse and misinterpret data. He discusses some of today's most popular valuation measures of the market, ( price/book ratio, dividend yield & price/earnings ratio) and the problems associated with their interpretations. The book also explores theories such as the distinguished Bayesian Theory of Probability and Behavioral Finance, along with strategic advice and observations from outside the financial community.

Along the way, he questions the reliability of some of the most widely accepted financial theories, (Capital Asset
Pricing Model, Modern Portfolio Theory, and the Efficient Market).

Carlson manages to make these more technical discussions absorbing and accessible, but the real strength of the book is his animal model. Beyond introducing the principles of fox-style investing, Carlson also systematically clarifies various courses of action one could take in order to attain his or her desired wealth in a thoughtful and thorough manner.

As Carlson argues, there are numerous techniques and investment strategies which can assist an individual to
achieve their investment goals. His book will help any type of investor as long as the investor follows his basic advice to be adaptable. Ultimately, the way the investor thinks about the market and reacts to new information will determine the probability of his or her long term success. There is much to ponder here, and I recommend the book to investors of all types and levels of experience.

Hilary Kramer is a financial editor and money coach for AOL and an authority on investing. Visit her at www.hilarykramer.com.