The trick to successful investment is to buy and sell at the right time. In a world where the only constant is uncertainty and change, the right information at the right time is a must for the successful investor. A lack of information increases the risk of poor decisions which can result in poor returns. Sources of information and news come and go with great rapidity and this guide aims to be “not only a complete guide to sources of investment information, but also a reference on how to use the information for investment decision making”.
The book begins with an overview chapter which briefly discusses investment sources in general. More usefully it discusses the factors which can cause the stock market to move, such as rumours, company announcements or interest rates; and the questions the investor should be seeking answers to ‐ what is the state of the economy, the market, specific industries and which companies are currently attractive? The chapters following then set about providing guidance on where to find the answers to these questions and how to read and interpret the information found.
Other general chapters discuss share price information, economic information, industry information and understanding companies. The company information chapter looks in detail at how to read and, more importantly, understand and analyse a company’s prospectus, annual report and interim statements. It also explains how to calculate financial ratios and explains their limitations. The remaining chapters cover specific types of investments ‐ securities, bonds, mutual funds, leveraged investments and international investing. Each begins by explaining the characteristics of the investment type; their advantages and disadvantages and how to read the information contained in each source. In addition to the sources mentioned within the chapter, a list of useful Web sites is given at the end of each chapter.
Advice is also given on how to structure an investment portfolio; online data services; investment software; how to select the right advisory newsletter for your needs and where to locate free financial information on the Internet. An extensive glossary and index complete the volume.
This is a book for the American investor or for anyone wishing to invest in and understand the US financial scene as it is US financial indexes, stocks, terminology and sources which are the focus of the book and are used as examples throughout. The more general explanations of the workings of financial and economic issues should however appeal to a wider audience.
This volume covers everything the investor needs to know. It is also written in a very easy to follow and comprehensible style. It should appeal to the student of finance, the layman who dabbles in the stock exchange, as well as to the serious investor.
