The Art of Investing is an incredibly insightful book that educates readers about the concept of investment. According to Warren Buffet, if you don’t find a way to make money while you sleep, you will work until you die. So what is investing?
Investing refers to allocating resources, usually money, to generate an income or profit. The book answers why, when, and where you need to invest. First, investing allows you to maintain your purchasing power. It also minimizes the impact of inflation (the why). You will be pleased to note that the author provided a couple of options in which one can invest. Other than the stock market, Certificates of Deposit, and bonds, real estate, Real Estate Investments (REITS), and cryptocurrencies are other investment options (the where). Lastly, anytime you have some extra cash is the right time to invest (the when).
A good investor needs adequate knowledge of the market. The good news is that brokers form part of the market. Lacking the required attributes or time can be resolved by the broker. It is prudent to understand some facets before approaching a broker. It is also fundamental to apprehend the broker-related fees, the available instruments, and other crucial aspects.
The Art of Investing is rich with insights into investing. In this book, you will find the asset classes people can invest their money in and how to start making money. Most readers do not realize they can enter the investing world without funds. How well do you understand shorting a stock? It is a risky investment, but with the necessary knowledge and risk appetite, gains can be made.
Artenie Alexandru's book is highly accommodating. Risk-averse and risk-seeking individuals will find what works for them by trolling through the myriad choices suggested in this book. My favorite part was Chapter 5, which discusses stock picking. The author thoroughly explains fundamental analysis, which encompasses qualitative and quantitative analysis. While quantitative analysis involves the study of a company's financial statements, qualitative analysis science uses the SWOT (strengths, weaknesses, opportunities, and threats) analysis tool. The concept of "Good Stock at a Good Time" (derived from fundamental analysis and technical analysis) is fascinating.
I also appreciate how Artenie Alexandru gradually increases the complexity of the topics covered in his book. He begins with basic concepts before moving on to more advanced ones. While some of the topics may require a business background to fathom fully, he provides graphical presentations, formulae, and case studies to help readers grasp the concepts.
Aside from the minor grammatical error, I felt that the resolution of most illustrations could be improved. I had to squint to notice the finer details in the graphs. However, this does not detract from the overall message of the book. I would rate this book 4 out of 5 stars. Once the resolution of the illustrations is improved, it will merit a perfect rating.
I recommend this book to anyone interested in finding a stream of passive or active income. Once you grasp the information therein, I’m confident you will assess and evaluate viable investment options and make the right investment decisions.
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