Wednesday, June 16, 2010

What I've been reading

The Elements of Investing by Burton G. Malkiel and Charles D. Ellis. It's very very small book unlike the mammoth investing encyclopedia's which only the author can comprehend. I try to read most books recommend by Fareed but I was surprised since this was the first time he recommended an investment book. The book is very basic (painfully) and easy read.

If you are a "grown-up" please shed your ego for couple of hours and pick up this book. If you want this country to stay as the number one economy in the world, please give this book to you kid on their eighteenth birthday. This will be the best patriotic act you can do to save this country from ruins.

Here's brief summary (stop giggling) of KISS (Keep It Simple Sweetheart) investing:
1. Save regularly and start early (but it's never too late)
2. Use retirement plans to expedite saving and save on taxes.
3. Diversify your portfolio.
4. Rebalance annually according to the asset allocation.
5. Stay the course and ignore market fluctuations.


Of all sad words of tongue and pen, the saddest are "It Might have been."
John Greenleaf Whittier

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