These books – by founder and former chief executive of Vanguard John Bogle, investment author Andrew Tobias and financial planner Carrie Schwab-Pomerantz – have become even more compelling reading as global markets immediately react to the election results.
In the wake of the US elections, Australian investors are being acutely reminded about how much is beyond their control – including the emotions of other investors and how world stock markets impact on Australian share prices.
Fortunately, as such books remind us, investors who follow the principles of sound investment practice have more control over their financial futures than they may think.
Investors have the power to choose their long-term goals, set appropriate strategic asset allocations and investment diversifications for their portfolios, to minimise their investment management costs and to efficiently manage their taxes. And disciplined investors can aim to keep their emotions under control by concentrating on their long-term objectives.
Heard it all before? Chances are you are a regular Smart Investing reader. (See How to climb the wall of worry, November 1.)
The Little Book of Common Sense Investing by John Bogle has been reminding us about investment's building blocks for almost a decade while The Only Investment Guide You'll Ever Need by Andrew Tobias has been at it for almost 40 years. Meanwhile, The Charles Schwab Guide to Finances after Fifty by Carrie Schwab-Pomerantz is a relative newcomer.
Consider some of the straightforward pointers from the three authors:
These authors appear to successfully deal with a challenge that many personal investor writers. This is challenge of making their explanations of disarmingly simple investment and personal financial principles high readable – even for more experienced investors.
Robin Bowerman
14 November 2016
www.vanguardinvestments.com.au
