Book Review > Share Investing for Dummies, 3rd Australian Edition

At first glance a newcomer to investing in shares will see this large book as a daunting experience.  However, if this fear can be overcome, and our new investor takes courage, the journey will be a rewarding one.

For a beginner this is a comprehensive and easy-to-understand bible.  The book is an updated, post-global financial crisis edition with new examples, charts and resources. 

The author cuts through the share market jargon and finds clear explanations in a light-hearted style.  The feeling is that he is writing just to you and for you.  If the reader is a more experienced investor they may, as I did, read the book beginning from the back.  The more technical chapters will fill in gaps for those who already think they know enough for their trading purposes.  For instance the author gives up to date information on tax and superannuation with the latest changes in government policy on capital gains tax and superannuation.

It gives information on investing using the internet and suggests winners to include in a portfolio.  The author shows how to use ASX Trade, the Australian Securities Exchange’s new trading platform.  He shows how to make the most of the computer and find the latest software, buy stocks online and stay abreast of company news and movements.

He also shows how to go global safely, and protect overseas investments when venturing into the global economy.

Another interesting chapter is on understanding how the global financial crisis happened, how it affected the stock market and its long-term implications.

I could not find a downside to this book other than it being a larger and more extensive treatment than I would expect with the title “Share Investing for Dummies”.  Perhaps the title is misleading because experienced investors will find it a valuable resource.  The “contents at a glance” and “table of contents” make it easy to identify subjects.  And within chapters good organisation makes it quick to grasp important summaries, the “technical stuff” and case histories.

One of the most important contribution the book makes for investors is a description of the many down-sides to investing in shares, and after a study of the chapter on “Assessing Your Risk” they would be obliged to discard any rose-coloured glasses they may have on the subject.  I feel confident with this book to hand investors would go on to make more informed decisions about the whole process.

Patricia Clifton is a member of the AIA.