The Elements of Investing - Great Book for Investors

The audiobook The Elements of Investing by Charles D Ellis and Burton G Malkiel, ISBN 978-1-59659-458-6, Gildan Media Corporation, sets forth its premise quickly and efficiently. In the The Elements of Investing, Charles D Ellis and Burton G Malkiel take the everyday investor from confusion to confidence.

I am good with words, not so much with math. However, I found practical value in The Elements of Investing by Charles D Ellis and Burton G Malkiel. Ellis and Malkiel made the investing information in The Elements of Investing both understandable, practical and doable. Those with more understanding will find this audiobook an even more valuable asset in exploring investment possibilities.

The authors know of which they speak. Author of A Random Walk that has so far sold over a million copies and Chemical Bank Chairman's Professor of Economics at Princeton University, Burton G. Malkiel, has served as the Dean of the Yale School of Management, Chair of Princeton's Economics Department and has chaired the President's Counsel of Economic Advisors.

A former managing partner of Greenwich Associates, an international business strategy consulting firm, Charles D. Ellis serves financial service organizations throughout the world. Ellis has authored 12 books including the bestselling Winning the Loser's Game.

Ellis and Malkiel make it clear there is no big secret to investing. And, there is no secret to quick wealth. Wealth, real wealth, wealth that lasts is made slowly and prudently. A "get rich quick" mentality will only lead to unwise investments. Overconfidence leads to mistakes and the prudent investor, one who is investing for the long-term benefits, will minimize mistakes.

Of course, one has to have something to invest. The first step to successful investing is to live within your means and save. Save until there is something to invest. One of the best ways to live within your means, of course, is not to use credit cards. This is always a losing proposition. However, a home mortgage, one that fits your income, is a positive investment,

It is important not to put all those investment "eggs" in one basket. If you have only basket or business in which you are investing and that business fails, you'll lose everything. Be sure to diversify.

Ignore market forecasts. By the time they come out, what will happen already has.

Keep it simple.

Keep six months cash reserves.

Minimize mistakes.

Build wealth slowly, but consistently.

Each age group may wish to change the allocation of bonds to stocks and stocks to bonds. As we age, we may wish to take even less risk and make sure the money will be available on retirement.

In the The Elements of Investing Charles D Ellis and Burton G Malkiel reminds the listener that investing is not for those who wish to get rich quick. Investing takes patience and persistence, recognizing that true wealth doesn't grow on trees but in slow, wisely chosen, diverse investments.

The Elements of Investing is worth a listen.