I was in Barnes and Nobel the other night, and I stumbled across the book The Investment Answer by Daniel C. Goldie and Gordon S. Murray. It looked interesting, and so I decided to give it a try. I'm glad I did. The book is a straightforward and practical approach to investing, and is great for beginning investors. It is extremely reader friendly, which is a huge positive for and investment book. It is also a quick read, which is perfect for the busy individual.
What is it all about?
This book was written by two individuals at different ends of the investment spectrum. Gordon Murray is a Wall Street veteran who made a living trading stocks and other investments. Meanwhile, Daniel Goldie is a life-long financial adviser who had always done his best to take care of his clients and their money. The book came about because they both, shockingly, agree on some very simple and straightforward strategies and advice that every investor needs to know.
This book is only 5 chapters, and these chapters address the five questions that the authors' believe every investor needs to address:
- 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 should I follow a passive alternative?
- When should I sell assets and when should I buy more?
Why I Recommend This Book
This book is very comprehensive in terms of the basics of investing. It is great for people who are just getting started, and offers practical, no BS advice. Also, this book is very easy to read for any audience. Finally, it offers straightforward ideas on how to execute so that you can manage your money.
Also, this book is not just financial adviser fluff. This book is based in solid data and facts that any individual can find by doing basic research. What this book emphasizes is that you won't be a huge winner every year, but that you can get the market return. It highlights how many fund managers fail to achieve this after fees, and how individual investors can achieve this if they follow some very simple steps.
If you are interested in a great, low priced, book on how to get started in investing, this book is for you.