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Investment theory

Investment discussion for beginners. Why you should invest your money, get help getting started
Jolead19
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Investment theory

#304624

Postby Jolead19 » April 30th, 2020, 10:02 pm

Moderator Message:
Moved to more appropriate board. Shadow left in place on original board


Good evening

I'm looking for a book on investing that specifically is not about shares (I probably have all of them already)

Something that out lines what makes a Good investment in general and how to think about them(numbers wise) and what to look for.

Does anyone know anything like it.

I'm good with money anyway but most of the books I see for sale are general advice ie reduce debt and don't buy Costa coffee at lunchtime etc.

I know I'm being vague but hopefully you get the idea....

Itsallaguess
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Re: Investment theory

#304650

Postby Itsallaguess » May 1st, 2020, 6:29 am

Jolead19 wrote:
I'm looking for a book on investing that specifically is not about shares (I probably have all of them already)

Something that out lines what makes a Good investment in general and how to think about them(numbers wise) and what to look for.


This is a fairly common question, and so one of the longest-running topics on this subject has been made into a 'Sticky-post' over on the 'How Do I Invest?' board -

https://www.lemonfool.co.uk/viewtopic.php?f=88&t=16116

I'd have a read through those posts, perhaps with a parallel browser-tab open on the Amazon site, and have a read of some of the top user-reviews for each book mentioned - some of the top reviews will often be written by like-minded readers, and should help you get a good feel for where each book is being pitched. I've also asked if this topic of yours can be moved over to that 'How Do I Invest?' board, given the subject-matter.

Some starters for ten -

Smarter Investing: Simpler Decisions for Better Results (Financial Times Series) - Tim Hale - https://www.amazon.co.uk/Smarter-Investing-Simpler-Decisions-Financial/dp/0273785370

Investing Demystified: How to Invest Without Speculation and Sleepless Nights (Financial Times Series) - Lars Kroijer - https://www.amazon.co.uk/Investing-Demystified-Speculation-Sleepless-Financial/dp/0273781340

Common Stocks and Uncommon Profits and Other Writings (Wiley Investment Classics) - Philip A. Fisher - https://www.amazon.co.uk/Uncommon-Profits-Writings-Investment-Classics/dp/0471445509/

The Little Book of Common Sense Investing - John C. Bogle - https://www.amazon.co.uk/Little-Book-Common-Sense-Investing/dp/1119404509

Intelligent Investor: The Definitive Book on Value Investing - Benjamin Graham - https://www.amazon.co.uk/Intelligent-Investor-Definitive-Investing-Practical/dp/0060555661

On a slightly different tack, I always think it's worth anyone wanting to get a better understanding of individual investments and companies to have a good read of Warren Buffett's 'Shareholder Letters' -

https://www.berkshirehathaway.com/letters/letters.html

You won't find many numbers in there, or great 'technical insight', but you do get a really good feel for how simple his approach is, and how much value he places on good, hard-working management, and businesses operating in areas of the economy that are likely to be around for many, many years into the future...

Cheers,

Itsallaguess

Dod101
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Re: Investment theory

#304653

Postby Dod101 » May 1st, 2020, 6:39 am

But the OP said he probably had all of them already (shares, that is) and he is 'good with money'.

He should be telling us what to do or writing his own book.

Dod

Itsallaguess
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Re: Investment theory

#304654

Postby Itsallaguess » May 1st, 2020, 6:44 am

Dod101 wrote:
But the OP said he probably had all of them already (shares, that is) and he is 'good with money'.

He should be telling us what to do or writing his own book.


Well I'd like to think we can be a bit more welcoming and charitable than that Dod...

It's only the OP's fourth post on this site, and there's clearly an interest to learn...

Cheers,

Itsallaguess

Dod101
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Re: Investment theory

#304657

Postby Dod101 » May 1st, 2020, 7:00 am

My remarks were not intended to be taken entirely seriously for heaven's sake!

Anyway it really depends what he is actually looking for. I assume the OP meant that he probably had all the books on investing in shares not that he had all the shares. He also tells us that he is good with money. Sounds like a good start for me.

Dod

Urbandreamer
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Re: Investment theory

#304674

Postby Urbandreamer » May 1st, 2020, 8:08 am

I'm afriad that I find the original question rather too vague for me to get what is being asked (given books about share investing are out).

For example, somewhat difficult to find and long out of print, but "The man catchers manual" Anne Lambton & Hazel Meyrick (1972) might fit.
Invest in certain self improvements in order to nab a rich Husband or sugar daddy.

No?

Well "Rich Dad, Poor Dad" by R T Kiyosaki is a good read. The problem is that the author has a business selling his image and there is strong suggestions that it is just image. As I said a good read, but don't trust it for ideas.

How about "Be more Pirate"?
https://en.wikipedia.org/wiki/Be_More_Pirate

Or "The Richest Man in Babylon", old folksy essays about working hard and putting money away.

I know that you said that you're good with money, but this might be worth a read.

"Your Money or Your Life"
https://www.goodreads.com/book/show/784 ... _Your_Life
Dull as ditchwater, but worth the slog.

Then again although you claim to have read many books about share investing, given current market turbulance what of speculation?

For examle Nissam Taleb's books
"The Black Swan" and "Antifragile"

Or Soros
"The Alchemy of Finance"

Or Gunther
"The Zurich Axioms"
https://www.goodreads.com/book/show/117 ... ich_Axioms

bungeejumper
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Re: Investment theory

#304699

Postby bungeejumper » May 1st, 2020, 9:24 am

Buy high, sell low. Or something like that. I forget the exact details ;)

First off, though (and apologies if you've already done all this), do a fundamental risk assessment, as an IFA would always do if he were meeting you for the first time. Once you've got a clear map of your financial commitments, your time horizons, your age, and how your family's support needs are likely to pan out over the coming decades, you'll be better placed to decide how much risk you should be taking on, or how little. From then on, it becomes easier to select an appropriate set of investment tools.

Make sure the books you read are up to date. It isn't so very long since banks and mining companies were thought to be boring, plodding, high-yielding, and generally suitable for little old ladies' retirement portfolios. :|

BJ

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Re: Investment theory

#304729

Postby tikunetih » May 1st, 2020, 10:41 am

Jolead19 wrote:I'm looking for a book on investing that specifically is not about shares (I probably have all of them already)


Accepting that the question is rather vague, then studying human behaviour is likely to prove very beneficial.

If you're happy with the "market return", then you can simply invest in the market (ie. a proxy for the market portfolio), do nothing, and await your eventual long term returns. Job done - almost. Almost, as to "do nothing" may be harder than you expect. Understanding human behaviour, and thus your own behaviour and your (emotional) responses to the behaviour of others, will prove useful in staying the course.

But if you want a shot at a different (better) outcome than the market return then you need to do something different to what everyone else is doing. Whatever framework you adopt will, by necessity, have at its core the need to have you behaving differently to other investors in aggregate, in order that you enjoy an outcome different to other investors in aggregate.

So study human behaviour: understand the intrinsic mental heuristics/biases that repeatedly trip people up, then consider ways to turn these into advantages able to deliver better-than-market returns.

Read up on behavioural finance/economics and psychology as it pertains to markets and in general. And practice zen-like suppression of your own ego, which otherwise always trips people up, whether investing or in life in general. As someone maybe once said: "Before you make any decision, stop...and set aside your ego."

JohnW
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Re: Investment theory

#304737

Postby JohnW » May 1st, 2020, 10:55 am

An investing book specifically not about shares? You need a bond book, don't you?

tjh290633
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Re: Investment theory

#304740

Postby tjh290633 » May 1st, 2020, 10:59 am

JohnW wrote:An investing book specifically not about shares? You need a bond book, don't you?

Property, Fine Art, Rare Motor Vehicles, maybe more ought to be considered.

TJH

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Re: Investment theory

#304839

Postby TUK020 » May 1st, 2020, 3:37 pm

this website is worth a good rummage:

Monevator
https://monevator.com/

Itsallaguess
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Re: Investment theory

#304851

Postby Itsallaguess » May 1st, 2020, 4:09 pm

JohnW wrote:
You need a bond book, don't you?


If asset-allocation is where Jolead19 is really looking for guidance, then the following two books have been mentioned regularly in the past, although I think the first might be a little more accessible for beginners, with the second maybe requiring a bit more background knowledge -

The Intelligent Asset Allocator: How to Build Your Portfolio to Maximize Returns and Minimize Risk - William Bernstein - https://www.amazon.co.uk/Intelligent-Asset-Allocator-Portfolio-Maximize/dp/1260026647

Rational Expectations: Asset Allocation for Investing Adults - William Bernstein - https://www.amazon.co.uk/Rational-Expectations-Allocation-Investing-Adults/dp/0988780321

For a good initial visit to asset allocation, and the importance of it to individual investors, then I think this article is also worth a read - http://diyinvestoruk.blogspot.com/2016/05/asset-allocation-revisited.html

Cheers,

Itsallaguess

Itsallaguess
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Re: Investment theory

#304877

Postby Itsallaguess » May 1st, 2020, 5:22 pm

Itsallaguess wrote:
For a good initial visit to asset allocation, and the importance of it to individual investors, then I think this article is also worth a read - http://diyinvestoruk.blogspot.com/2016/05/asset-allocation-revisited.html


Just a quick note to say that there's a link on the above article that goes to a great 'Asset allocation quilt' page by Ben Carlson, but unfortunately it links to an older page that has not been updated for a few years.

Here's a URL to an updated 'Asset allocation quilt' article by Ben, that's been updated as recently as January of this year -

https://awealthofcommonsense.com/2020/01/asset-allocation-quilt-redux/

The updated quilt itself is obviously US-based, but I think it quite clearly demonstrates the importance of good asset-allocation in a way that I hope is useful to the OP -

Image

Cheers,

Itsallaguess

GoSeigen
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Re: Investment theory

#304976

Postby GoSeigen » May 2nd, 2020, 8:24 am

Jolead19 wrote:
Moderator Message:
Moved to more appropriate board. Shadow left in place on original board


Good evening

I'm looking for a book on investing that specifically is not about shares (I probably have all of them already)

Something that out lines what makes a Good investment in general and how to think about them(numbers wise) and what to look for.

Does anyone know anything like it.

I'm good with money anyway but most of the books I see for sale are general advice ie reduce debt and don't buy Costa coffee at lunchtime etc.

I know I'm being vague but hopefully you get the idea....



All negotiable instruments are a variation on a bond. If you don't know about bonds you don't really know about investing (numbers wise).

Moorad Choudhry wrote the bible on bonds, he's actually easy to read too; his book will cover everything a non-professional needs to know and more:

https://www.amazon.com/Introduction-Bon ... 047068724X


GS
[No connection to the author]

Bubblesofearth
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Re: Investment theory

#304978

Postby Bubblesofearth » May 2nd, 2020, 8:32 am

Jolead19 wrote:
Something that out lines what makes a Good investment in general and how to think about them(numbers wise) and what to look for.



First decide how much of your wealth you want to allocate to shares. This will depend on your circumstances and attitude to risk.

Then it's a question of where to invest the rest and there are currently no good answers. Despite what some big complex books will try to tell you.

The problem is that since the GFC we have been living through what is termed 'financial repression' which roughly translates into not being able to keep up with inflation through cash or cash-like savings. In the good old days, pre-GFC, it was always possible for private investors to keep their noses ahead of inflation through fixed term deposits. No longer. 1.6% is about the best you can hope for from 2-5 year cash deposits.

Gilts and bonds are no better. Most gilts are paying less than 1% and you can only get better potential returns from bonds that carry significant risk to capital. Sure, you may get capital gain but you could also get capital loss.

Gold is an option as an asset that has kept up with inflation long-term. But it has risen a lot recently and if you want physical then there are buy/sell and possibly storage costs.

You could look at less mainstream options (collectables etc) but these usually require specialist knowledge/expertise and unless you have that you are likely to get burned.

Bottom line I would go for equities (global tracker would be my pick just now) plus cash.

BoE

Jolead19
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Re: Investment theory

#316207

Postby Jolead19 » June 7th, 2020, 8:50 pm

Good evening

Sorry for my lack of replies but events took over.....

Yes my question was vague but there were some good suggestions there so appreciate everyone taking the time.

Thanks

AleisterCrowley
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Re: Investment theory

#316229

Postby AleisterCrowley » June 7th, 2020, 10:51 pm

GoSeigen wrote:
All negotiable instruments are a variation on a bond. If you don't know about bonds you don't really know about investing (numbers wise).

Moorad Choudhry wrote the bible on bonds, he's actually easy to read too; his book will cover everything a non-professional needs to know and more:

https://www.amazon.com/Introduction-Bon ... 047068724X

GS
[No connection to the author]


I've got this one somewhere, mislaid it when I moved but I was half way through and it seemed pretty good;

"The Sterling Bonds and Fixed Income Handbook: A practical guide for investors and advisers"
Mark Glowrey
https://www.amazon.co.uk/Sterling-Bonds ... 199&sr=8-6

I think he is (was?) the chap behind
http://www.fixedincomeinvestor.co.uk/x/default.html

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Re: Investment theory

#316798

Postby Charlottesquare » June 9th, 2020, 2:25 pm

No idea if there is a more up to date equivalent, but a long time ago I found "The Investors Chronicle Beginners Guide to Investment" useful. Whilst at the time I had a fair bit of business finance technical knowledge (investment appraisal/redemption yields/IRR/NPV etc etc) and could put accounts together, I was pretty raw at the actual business of making investments ( except for stagging a few HMG giveaways after prompting by my father)

https://www.amazon.co.uk/Investors-Chro ... 065&sr=8-1

If you can find a rounded introductory book covering everything from shares, bonds, gilts, ITs, UTs etc, even premium bonds, you can then branch out and read more in depth in the areas that prick your further curiosity.


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