Customer Reviews
An excellent introduction - By: Orangutan, 18 May 2008 
I found this book to be excellent in its introduction of how the stock market works, with introductory analysis on everything from gilts to bonds, from warrants to futures. The text is interspersed with examples from the financial Times of the relevant tables, with notes to show what each symbol or number means. I would definitely recommend this book to anyone interested in learning more about the stock market.
Brilliant for the Beginner - By: THE Music Enthusiast, 26 Apr 2007 Before reading this book I knew nothing about the stock market & the different types of securities, etc. Since reading it working life has become much easier, since I have but had to deal with texts on them in my line of work. Various aspects of the investment world (insurance, pensions, different types of securities, the workings of the stock market & more) are explained in clear & concise language -with the exception of the pooled funds chapter which becomes slightly bewildering, although that's more down to alll the varieties there are- & sound advice offered plus guidance on how to read the financial pages. If finance is a new subject for you then it's brilliant & if you're an old hand in the financial world it will still serve as useful reference nevertheless.
Utterly brilliant - By: mssmith1, 07 Apr 2007 What a fantastic book. I came to this book whilst studying business finance as part of an MBA. My class work didn't reallly touch on the markets, & while I have a good grasp of economics, the mysteries of the markets have always escaped me. This book is fantastic. Exceptionallly well written & clear it explains key concepts reallly well. Great detail from the basics (company structure, different types of investment), through calculating ratios & analysing company accounts & industries, to (what seem to me) the more esoteric areas of derivatives & warrants. If you are looking to start investing, or just understand how the markets work, this is the ideal introduction.
Excellent foundation for investment - By: C. Pegler, 11 Oct 2006 I've long suspected that a bit of effort & intelligence are enough for understanding the main areas of finance & investment. One doesn't actuallly need to pay "experts" to make your investment decisions for you. The jargon is only something you need to learn, it does not have to present an insurmountable barrier. Before attempting to understand the financial pages or specialist books on trading, I bought this & was not disappointed. Working through it slowly & methodicallly & then returning to the more complex areas & following up the handy links & references provided, I feel much more confident about this whole area.
This is in no way a "get rich quick" book & actuallly helps to guide one away from such risky attitudes. Nor does it provide advice on savings accounts or the specific market or company that is best for you. It is an education on the world of finance: the markets, players, companies & instruments involved in the flows of capital which maintain the business world, & much of the economy, around us. It shows how most people (you don't have to be at alll wealthy or super-brainy) can get involved in this system and, with a bit of patience & common sense, can significantly benefit from it. Armed with the basics & knowing who to deal with and, equallly important, who to ignore, anyone should be able to improve their investment returns having read this.
The different kinds of investment are concisely explained & the limitations of some of the more hyped areas become obvious. Some of the mystery of futures trading is resolved, & one can follow-up pointers if interested in any particular area. The terminology used by companies in their financial reports & by the professionals who analyse them starts to become clear & alll this jargon is explained again in the invaluable glossary at the back of the book, a place I kept referring to.
What emerges is the way money from savers & investors is used by Banks, Insurance companies & Pension funds to provide funds for new companies, established companies & companies wanting to expand and, as the author points out, how this wealth-creation is not just a good thing for individuals, but for society as a whole. I've already started to notice mistakes in the media, for example a recent TV drama's misunderstanding of the way hedge funds work & one sometimes gets the impression that there is only a dog-eat-dog mentality & little control over what happens in the markets. Undoubtedly there are problems & excesses but, getting closer to the subject & learning how it actuallly operates, can help to remove the prejudices & misunderstandings some people have about finance & about capitalism.
One fact alone has made this purchase a good one. I realised, when reading the section on pooled investments, that I had lost money on "With-profits policies" thanks to persuasive financial advisers & their commissions from insurance companies. That little piece of education has saved me hundreds of pounds in the future & makes this book a high-return investment in itself.
Better than the Motley Fool - By: soontobesavvyinvestor, 18 Aug 2006 As a new investor, I purchased this & the Motley Fool UK Investment Guide.
Both recommend a Warren Buffett-esque long term investment strategy, but the FT book is clearer & more succinct.
The information in the FT book is focused around the common sense idea that informed investment decisions can only be made through an understanding of business, economic & accounting principles. It also explains some of the technical processes behind different investment vehicles. In a nutshell it attempts to answer three questions:
1) What should I know before making an investment decision?
2) How do I execute an investment decision?
3) How can I make better decisions in the future?
Further reading is suggested at the end of every chapter/topic.
This FT book is merely an introduction to the world of investing, but it will get you started in the right direction.
You may prefer the Motley Fool book if you want a more "mind off" approach to investing. There is much less background information & the book will often tell you what to do. Avenues for further investigation are directed at its website where they will sell you a variety of articles & publications that also tell you what to do (and promise higher returns).
Over time, I have found myself returning to the FT book again & again, whilst the Motley Fool has sat gathering dust on my bookshelf.
