What if there were a way to cut through all the financial mumbo-jumbo? Wouldn't it be great if someone could really explain to us-in plain and simple English-the basics we must know about investing in order to insure our financial freedom?
At last, here's good news.
Jargon-free and written for all investors-experienced, beginner, and everyone in between-The Investment Answer distills the process into just five decisions-five straightforward choices that can lead to safe and sound ways to manage your money.
When Wall Street veteran Gordon Murray told his good friend and financial advisor, Dan Goldie, that he had only six months to live, Dan responded, "Do you want to write that book you've always wanted to do?" The result is this eminently valuable primer which can be read and understood in one sitting, and has advice that benefits you, not Wall Street and the rest of the traditional financial services industry.
The Investment Answer asks readers to make five basic but key decisions to stack the investment odds in their favor. The advice is simple, easy-to-follow, and effective, and can lead to a more profitable portfolio for every investor. Specifically:
Should I invest on my own or seek help from an investment professional?
How should I allocate my investments among stocks, bonds, and cash?
Which specific asset classes within these broad categories should I include in my portfolio?
Should I take an actively managed approach to investing, or follow a passive alternative?
When should I sell assets and when should I buy more?
In a world of fast-talking traders who believe that they can game the system and a market characterized by instability, this extraordinary and timely book offers guidance every investor should have.
Great book for understanding the basics of smart investing.
A Strunk & White for Investing
There, I said it. It's actually even shorter than the page count suggests, speaks frankly about the basics a cites sources. It serves as a stand-alone reference for many basic topics and as a great jumping off point for further reading.
As a physics major, the mathematical basis of the principles described here are straight forward and I commend the authors for at least mentioning standard deviation, though I would think variance is really the better thing to think about ( standard deviation only applies to Gaussian distributions, and finance is not Gaussian to the core).
As a physician, the concept of an independent advisor reverberates deeply with me. As a general rule, doctors do not treat their friends and family (colds, sure, surgery or serious disease, not so much) because we know outcomes are worse. Same with money, and the authors really could have gone deep into the growing deluge of behavioral economics research that bears this out.
I agree with the reviewers: if I had only one book on inveting to recommend to friends and family, this would be it. In fact, I often give friends a copy of Strunk & White. I may have to expand that gift to a two-pack!
The author leads you to believe that he is going to tell you something fresh and new from an insiders's perspective. But all that is done here is a regurgitation of general investment knowledge. Save your 10 dollars. It appears to me that the author was merely attempting to leave a larger inheritance for his family.