The Standard & Poor's Guide to Long-Term Investing

I picked up this book after reading another book by Mr. Tigue on dividend investing. Like the first book I read by Tigue, this book is simple, straightforward, and very well written. However, I have to admit that at some points it was slow going, but then much of the information is not new to me, so I believe that may explain it. Tigue borrows a marketing ploy from the infamous Stephen Covey, and uses it to pass on some general, but very powerful ideas on long term investing. The first chapter talks about the various investment vehicles available to save and invest, either tax-deferred or tax-free. This chapter is probably the most important one of the book (apart from the chapter on keeping costs down), because it discusses the critical concept behind any successful long-term investing strategy: paying oneself first. Anyone that works for a living should get into the habit of setting aside a fixed percentage of their net (after-tax) income, and put it to work building capital. The second chapter talks about diversification, and is probably a very good idea for the small investor. However, I felt this chapter was a bit under-done, because most small investors are of limited means, and to achieve adequate diversification, one would need a sizable bankroll (about fifty grand, minimum I would say). So, I believe most folks would be better off by automatically investing a fixed percentage of their net, after-tax income in a good, no-load, low cost stock mutual fund. Most index mutual funds allow you to participate with automatic contributions of a hundred bucks, and thus would be a good way to achieve diversification- if, of course, diversification is important to you. The third chapter talks about holding stocks for the long term, and points out that over long periods of time, stocks have low volatility. 'Tis the short term that causes ulcers. The fourth chapter talks about doing those things you know and understand, avoiding the sophisticated and exotic, and most important, evaluating the business and not the stock. I felt Tigue could have said more on this, but this is a book for the beginner, so I will not mark him down for it. The fifth and sixth chapters talk about when to buy in, and having done a fair of investing over the years, I feel that these chapters are potentially misleading. Serious investors buy businesses, and not stocks. The seventh chapter talks about keeping costs down, and is probably the most important chapter for the seasoned small investor, but second in importance to the novice. Costs do matter because all the players know what you know, and most of you achieve the same results as most everyone else. By netting as much as the return as possible, you can very easily propel yourself far above average. However, I think for the novice the concept of paying oneself first, CONSISTENTLY, is the most important lesson to take away from the book. Chapter eight talks about knowing when to sell, and is good backg

If you want to understand long term investing, this book is the key to grasping the fundamentals.

Very useful if you are a beginninger in investing and know nothing about it. Explain in very simple term but at the same time, give quite a detail. I enjoy it. Of course, this book is not mean to make you rich in 24 hrs but does provide some tips on how we should manage our personal investment.

This book explains, in simple terms, how to be a successful investor based on proven techniques. It covers almost all aspects of investments (stocks, bonds, funds, and more)A great book. I changed my investment strategy because of this book. I am also going to keep in mind a lot of the tips that were covered in the book. Good job, Tigue.