Average Reviews:
(More customer reviews)This is a very valuable resource for serious investors. It is not for everyone. The concepts presented in this book take a certain level of knowledge to implement. It takes time to learn the concepts and to stay abreast of what is happening in the world.
The first thing that Mr. Winter does is to dispel the myth that you can become automatically wealthy by following the buy and hold method of investing. He does a good job of showing the dangers of the buy and hold philosophy of investing.
Unfortunately, far too many Americans will not take the time to understand the basic factors controlling the domestic stock markets let alone trying to understand the more complex global markets.
There are, in my opinion, three major lessons in this book. The first is while buy and hold may have worked at one time, it no longer works.
The second major lesson has to do with effective decision making. Here Mr. Winter gives a good lesson on binary decision making. Simply reduce every decision to a yes or no outcome. It does not matter how much you study a question, eventually you need to make a decision. So learn to structure your research so that you arrive at an either/or decision.
The third major portion of the book is a set of concepts or questions that an astute investor needs to examine. These questions concern where and why you will invest or choose not to invest in a given situation. For example, should you invest in the developed world or the developing world? Should you invest where a country is ruled by the rule of power or the rule of law? Should your investment decisions be based on fear or greed? It is interesting that he defines greed as a sub-set of fear, that is, we actually fear that we are not going to get our share.
There are twenty-one either/or questions that he presents with a full explanation of the significance the question has on our investment choices.
The book is well written and easy to understand. However, it is not for the casual reader. While understanding the concept of binary decision making will improve the decision making process for some, I would not recommend you read the book just for that purpose.
If you are a serious investor, with a strong desire to become a successful investor, then this book should be high on your reading list. It does not dwell on the fundamentals verses the technical charts. It looks at investing from a higher perspective. The book examines the various factors that impact successful investing. In a changing world, where events happening around the world affect what happens everywhere, you really need to understand the interactions. This book does a very good job of making the complex financial world at least understandable. Mr. Winter also gives you are detailed model to follow to stay informed about how the changes will affect your investment decisions.
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