Book Review - Selecting Shares That Perform

in #books2 years ago

Selecting Shares That Perform: 10 Ways to Beat the Index (Investor's Guides) by Richard Koch outlines ten different approaches to investing, from Growth strategies to Value investing to buying Warrants.

The chief insight in his book is that there is no one magic bullet approach: Often a strategy depends on the personalty and skills of the person trying to apply it. If you are not good at detail and analytics for instance, it's no good trying Value Investing. No matter how good the strategy is, you won't have the skills to make it work for you. Similarly, if you are risk-averse, you should avoid Emerging Markets and Warrants.

He begins the book with an overview of investing and then goes on to discuss the importance of record keeping and risk management, with ten rules to stop you from losing money. There is then a quiz to take, to decide what type of investing strategy would suit your personality.

The second part of the book outlines the ten strategies in detail, and you can either read all of them, or simply concentrate on the strategies that the quiz results recommended you try.

I loved this book. It was intelligently written, and I liked the emphasis at the beginning on making sure you don't lose money (it calls to mind a saying attributed to Warren Buffet, where he stated that the First Rule of Investing is "Don't Lose Money" and the Second Rule is "Don't forget the first rule"). The strategies are all clearly explained with plenty of examples.

If you are new to investing, I highly recommend this book.