Book Review > Shares in a Nutshell 2nd Edition

This book is aimed at giving beginners in the market a basic understanding of how the markets work, how to purchase stocks and develop a balanced portfolio.

As Connelly says in the preface, the hype associated with floats of government enterprises and major demutualisations, together with the subsequent increase in share prices can encourage newcomers to the market to think and act like speculators, always seeking a bigger bang for their buck.

The aim of this book is give investors an informed, disciplined yet flexible approach, a recognition of how risk, price and value are related and an acceptance that a reasonable level of return is a worthy goal.

A key feature of the book is the concise summary In a nutshell of the main points made at the start of each chapter. These allow a reader with limited time to review the important points before reading the chapter, giving him the option to read the detail and explanation or skip to the next chapter.

The book gives some good insights into the nature of risk and how to manage it. It also gives some practical examples to assist in the selection of sectors and individual stocks and some useful tips on getting into the market at a lower price after specific stock selections have been made.

In summary, the book is easy to read, so it is an excellent starting point for new investors and a refreshing review for experienced investors.