The First Time Investor: How to Start Safe, Invest Smart, and Sleep Well

I was thrilled to finally get some serious and safe " how to" information on investing. I thoroughly read and enjoyed Peter Lynch's book " One Up On Wall Street", which is the true ABC guide to investing, but never felt confident enough to put my money in any sort of investment vehicle. This book helps the reader to diversify and thus reduce risk. Simple explanations and data to back up the authors' claims makes this an excellent guide for the first time investor. A strong 5 stars!

Although I'm a veteran investor, I enjoyed reading this well-written updated third edition by two highly qualified authors. Everyone involved in investing in the stock market, mutual funds or separately managed accounts will glean useful information from this book. Composed of 22 chapters and three appendices, this 300-page paperback covers the key basics of investing. This no-nonsense easy-to-read text explains the importance of determining your risk tolerance before you invest, understanding the difference between asset allocation and diversification so you don't make foolish mistakes, knowing how to determine your retirement income goals and capabilities, and investing for your children's education. Many investors do not have a clear idea of the riskiness of the stock market. Perhaps after the the Nasdaq Composite Index fell from 5048 in March 2000 to 1100 in October 2002, investors learned the hard way that risk really matters. That is why one of the key discussion points that the authors hammer home is the comparison of investment risk vs. reward. The authors cover the risk-to-reward spectrum with numerical examples, the meaning of the efficient frontier, beta, and the standard deviation. One chapter provides a blueprint of how to build a diversified portfolio in five easy steps. Additional chapters cover the basics of investing in active and passive mutual funds, their share classes, stocks, bonds, annuities,separate accounts and company stock options. Also provided is a 17-page glossary of investment terms. If you have never invested in the stock market or have a minimal knowledge of how to play the game, then I highly recommend that your read this book before you place your hard-earned cash in the market so that the odds are in your favor. You need at least a basic knowledge prior to investing, otherwise your may lost a large portion of your capital without realizing what happened to you, and that would be a shame.

An easy read yet full of useful info. The authors explained some concepts I'd heard often but never fully understood. I'm excited about applying the concepts to my personal portfolio and my 401k.

I'm no writer, but I've been an investor for 25 years. I have two kids in college. I bought books for both of them. The author makes it clear how to invest without taking needless risks understandable. I know the "On-line Day Traders" are today's hot books, but I've seen traders come and go. I like how the author refers to investment news as investment pornography. It get you all excited but that's about all. I think this is an important book because once this part of your life is handled, you can make different life decisions. Not decisions based on investment catch-up. Today's college kids are watching CNBC and CNN on their breaks. They think that kind of info gives them up to the minute answers. But so much of the news is mis-information. This book will help anyone who is serious about saving and investing. I recommend it.