The Smart & Common Sense Investor - Personal finance book for 2016

 

 

For 2016, learn the principles of profitable long term investment in stocks and shares. Buy a copy of The Smart & Common Investor today and join the rest who have benefited from the simple principles well elucidated in the book which is available in both ebook and paperback formats.


Amazon UK
http://www.amazon.co.uk/Books-Chinedu-Chiana/s?ie=UTF8&page=1&rh=n%3A266239%2Cp_27%3AChinedu%20Chiana

Amazon.com
http://www.amazon.com/s?ie=UTF8&page=1&rh=n%3A283155%2Cp_27%3AChinedu%20Chiana

The FANG stocks continue to lead the way

The FANG stocks ( Facebook, Amazon, Netflix, Google) all rose at the close of trading on Tuesday 29th December and continue to be market leaders. Tesla also rose 3.6%.

Aveva

The Sunday Times reports that Aveva, the engineering software developer in which the author has a stake, is facing pressure from shareholders to put itself up for auction after the failed £1.3bn tie up with Schneider Electric.

Time to dip into energy and mining stocks?

The prices of energy and mining stocks have been pummelled over the past three years, battered by a combination of oversupply and poor demand especially in China. Though low prices do not necessarily reflect a buy signal, for the long term investor this might be a time to look at toe-dipping into the sector. A monthly savings plan would be ideal in which small amounts are invested regularly employing the benefits of pound cost averaging (or dollar cost averaging). However the smart investor should do their research and be selective in which companies to invest in. Alternatively a broad based fund would reduce the risk of investing in individual companies.

Invest long term, invest the 'Arsenal Way'

I often use sport analogies to describe investment principles. The smart and common sense investor should pick quality companies and invest long term, ignoring the short termism that is rampant in both the sporting, particularly football and financial universe. Football clubs panic when results go against them and there is a knee jerk reaction to change the manager. Arsenal have kept faith with Arsene Wenger, built a solid foundation and strong finances, developed an attractive playing style, constructed an envious stadium and will go into the future to achieve success. The investor should develop such psychology to withstand short term panic when the prices of quality companies are pulled down in a market downturn. These periods should instead be seen as an opportunity to buy at depressed prices.

Ignore the noise and invest long term

There is so much collateral noise in the investment world and the disciplined investor may sometimes forget the basic tenet of investment - finding and buying quality companies at reasonable prices. Endless professionals appear on the financial media and try to predict the direction of the macroeconomic radar. For the smart and long term investor, the focus should be to treat investing as if you were buying a business. When you find such a quality company, selling at a reasonable price, ignore the noise and invest for the long term. Do not be deterred by short term gyrations but focus on where the business will be in the net 10 - 20 years.

The Smart & Common Sense Investor on Amazon.com

The Smart & Common Sense Investor is available in both paperback and ebook formats on Amazon.com

http://www.amazon.com/The-Smart-Common-Sense-Investor/dp/0992654513