Recommend me a book on S & S investing.

[Benbay001]

Ive recently read "How to own the world" after reading recommendations on here.

But I would like something that specifically drilled into shares, rather than all forms of investing.

I follow an American (who also sells books) on youtube, whose way of explaining I find really easy to understand.

Would I be foolish to buy a book about investing from an American POV, when I have little intention of buying shares from American markets?

How much difference is there?

Ultimately I would like to understand how to decipher the real value of companies and understand the terminology etc.

Thanks

[xeny]

If you're going to share pick, plan to buy the "best" shares regardless of which market they're on.

I'd start with :The Intelligent Investor: , although I've also got a soft spot for :The Zulu Principle: and :Accounting for Growth:

[bogie]

Joel Greenblatt (successful fund manager) wrote a book about how he selects stock for his fund, website and stock screener here

https://www.magicformulainvesting.com/Home/AboutTh...

The book is another good one to add to your list

[Benbay001]

xeny said:

If you're going to share pick, plan to buy the "best" shares regardless of which market they're on.

I'd start with :The Intelligent Investor: , although I've also got a soft spot for :The Zulu Principle: and :Accounting for Growth:

I was more of the opinion that i know LSE listed companies better than American ones (some obvious companies aside)

I will check those books.
Thanks

bogie said:

Joel Greenblatt (successful fund manager) wrote a book about how he selects stock for his fund, website and stock screener here

https://www.magicformulainvesting.com/Home/AboutTh...

The book is another good one to add to your list

I will also check that book.

Thanks.

[xeny]

I've found that "knowing a company" and analysing it with a view to investing in it are so different in approach that I don't think the former necessarily helps with the latter, unless you work in a relevant role in the company in question.

[Jon39]

Not a book, but looking at Mr Warren Buffett's interviews (YouTube) and reading his quotes, should be very worthwhile for you.
Gives you a feeling for the subject, and guidance on the thought process of buying into businesses.

If you want to be a share gambler, try short-term share trading.
If you want to be a share investor, then long-term investment is the proven method for most private investors.

Trying to pick businesses to invest in is the tricky part, but I have had good results with large UK international businesses. Some safety in size, and exposure to worldwide trade and currency.
Keep in mind that steadily increasing dividend income, often forms a significant proportion of a long-term investment return. Many FTSE 100 companies now have dividend yields over 5%.

If you are employed by a firm offering an employee share option scheme, that is the first thing to consider. No risk to your savings, a discount on the share price, and you only 'bet on the horse, after it has crossed the finish line'. If a share price fall occurs before year two, might then be worth withdrawing your 12 months savings, and begin again at the lower option price.

Edited by Jon39 on Saturday 9th June 20:41

[BarryGibb]

Benbay001 said:

Ive recently read "How to own the world" after reading recommendations on here.

But I would like something that specifically drilled into shares, rather than all forms of investing.

I follow an American (who also sells books) on youtube, whose way of explaining I find really easy to understand.

Would I be foolish to buy a book about investing from an American POV, when I have little intention of buying shares from American markets?

How much difference is there?

Ultimately I would like to understand how to decipher the real value of companies and understand the terminology etc.

Thanks

Can I ask why you are thinking of buying individual shares? Is it "fun" money or part of an investment portfolio?

[anonymous-user]

Jon39 said:

If you want to be a share gambler, try short-term share trading.
If you want to be a share investor, then long-term investment is the proven method for most private investors.

It is vital for any newcomer to understand this distinction.

As an "investor" it's not been difficult to achieve good long term returns. All investors can benefit simultaneously from global economic growth. There is no one who you have to beat to make money.

A trader is in a different position, trying to make money by being smarter than other people. It's more like gambling - not the roulette "game of chance" style of gambling but more like poker where the table is surrounded by highly skilled players in a game of strategy and skill. Put simply, if you wouldn't walk into a room of experts and challenge them to a game of poker you should ask yourself why you would engage in share trading without extensive knowledge of companies and markets.

[aww999]

I would recommend a book called "the long and the short of it", which talks in some detail about common investment mistakes, a variety of long term strategies, the cheapest way to own shares, funds etc, diversification, and how to move the odds a little in your favour.

It doesn't go into detail about analysing companies' financial statements but, as alluded to above, that is quite a skilled and specialised area. It taught me that I don't know enough* to have much chance of successful stock picking, and I am a chartered accountant working in global finance

It's pitched at intelligent, numerate non-experts and is very well written.

• I could have a go but don't want to spend my evenings and weekends reading financial statements, hence sticking to funds for now.