02/28/2022
Market guru Geddes demystifies investing, presenting it as a clear-eyed, no-nonsense process in a guide that readers new to the market will find helpful, cautionary, and inspiring. Using a metaphor of rational results versus primal cravings, Geddes explains that consumers are often deceived by a “romantic narrative” about investing–the myth that portfolio performance can, for the most part, be controlled. In contrast, he offers up a data-based alternative that focuses first on regulating fees and taxes, followed by risk and return, and walks readers through how to become an “empowered investor,” someone with a watchful eye for portfolio managers who try to misrepresent potential outcomes.
For readers who shy away from technically complicated writing, this guide will be a strong fit. Geddes is candidly direct—even going so far as to caution readers against the myth that investors can consistently outperform the market—and delivers user-friendly tools to help followers improve their returns. He urges potential investors to begin with understanding investment fees, noting that these are the “easiest to control,” and clarifies complex market terms like asset and wealth managers, security selection, and benchmarks. His close attention to tax impacts will be a welcome topic for readers looking to manage their funds more efficiently.
Most helpful are Geddes’s step-by-step instructions on deciding whether to hire an advisor, including a self-assessment quiz to determine the viability of investing without one, and follow up measures readers can take if they elect to go that route. He identifies questions to ask when interviewing potential wealth managers, as well as a technical glossary, alongside upfront counsel that “if you’re a long-term investor in stocks, at some point you’ll have to endure a horrible, gut-wrenching downturn.” Buyers beware: This is a guide tailored to investors looking to get started, laying out structured advice and the necessary know-how for success.
Takeaway: A candid guide on getting started in market investing that will please readers looking for easy-to-follow, understandable steps.
Great for fans of: Erin Lowry’s Broke Millennial Takes on Investing, Daniel Crosby’s The Behavioral Investor.
Production grades Cover: B+ Design and typography: A Illustrations: N/A Editing: A Marketing copy: A
2022-02-07
A longtime financial executive explains investing to novices.
In this debut business book, Geddes examines the basic principles of investing, how human psychology is often at odds with sound practices, and how individuals can choose to manage their own assets or hire a financial professional. And even though he has made his career managing the investments of others, the author tells readers that in most cases, they can get the best returns by doing it themselves and pursuing a passive strategy that requires little more than annual maintenance. The volume encourages readers to put their money in index funds rather than trying to pick high-performing stocks or attempting to profit from the rises and falls of the markets, arguing—with supporting evidence—that it is the method that provides the most reliable returns. Geddes recommends concentrating on improving returns by minimizing fees and taxes, showing that these are the ways investors are most able to improve their outcomes. The work also offers guidance for readers who would prefer to hire a professional, with advice on assessing potential advisers and working effectively with them. The author is a strong writer who does an excellent job of stripping away the bluster and complexity that often surround financial advice to focus instead on the fundamentals. The book’s grounding in psychology gives Geddes a theme to return to as he reminds readers throughout the text that although it may feel appropriate to buy and sell in response to changes in the market, resisting the urge will deliver the best long-term results. The balance between details and minutiae is well managed, with plenty of actionable information presented in a comprehensible format. Readers who are already aware of the basics of investing will find the volume an effective refresher and a useful reminder of the value of passive strategies while those without substantial knowledge of the subject will be able to use the work as an effective and engaging introduction.
A solid and well-written overview of how to invest effectively.
