Why Are We So Clueless About the Stock Market?:Book Review and Giveaway

I was recently provided a copy of the book, “Why Are We So Clueless About the Stock Market?” by Mariusz Skonieczny. As I usually do when provided with books for review I will be giving away a copy as well. The giveaway rules will be at the end of the post.

This book starts out explaining what stocks are and how the stock market works. This explanation is simplified so that even a novice investor should be able to understand it.

The author then goes in to some detail on how to evaluate a stock for purchase. He mainly focuses on the company’s projected earnings compared to its current price. He points out that if the stock doesn’t offer a return greater than you would get from a Treasury note than the stock is a pass. He also prefers to invest in companies with “moats”, which are barriers to competition.

The book also includes a chapter on when to sell. This is an important part of stock investing that is often overlooked.

His advice on diversifying goes against the conventional wisdom. He warns against over-diversifying which can prevent your top picks from having much impact on the overall performance of your portfolio.

In summary, I think this book would be a solid resource for anyone who is looking to invest in the stock market or simply wants to learn more about stock investing.

Leave a comment on this post if you would like to win a copy of this book. I will be choosing a winner at random this Friday. Only one entry per person and you need to have a U.S. mailing address. Good Luck!