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MILLION DOLLAR PORTFOLIO By David and Tom Gardner – Reviewed

Posted in Life..., Personal Finance, Reviews with tags , , , , , , , , , , , , , , , , , , , , , , , , , on May 28, 2012 by stanleyriiks

I’ve long been a fan of the Fool.com website and it’s UK equivalent. The fools practice no-sense, common-sense driven, long-term investing. This book is more of the same. Although you could find very similar articles to each chapter on the website, and I have read very similar to most of them, the book sums things up nicely. The style is the same, so if you enjoy the website you’ll enjoy the sensible with a touch of humour narrative.

The book will not make you rich. The sub-title is a much better description of what you get in this book: How to build and grow a panic-proof investment portfolio.

As I said before, fans of the website are not likely to find much new here, the book takes you through the steps of creating a diversified portfolio, helps you to maximise your investment returns and if you follow the instructions and use their methods it would be possible to create a million dollar portfolio if you started off with enough money and invested for long enough. In one scenario the brothers provide it take about 30 years.

Not the most exciting book on investing, this is a good guide for beginners but will hold little interest for experienced investors or those regularly uses of the Motley Fool.

THE SNOWBALL: WARREN BUFFETT AND THE BUSINESS OF LIFE By Alice Shroeder – Reviewed

Posted in Life..., Personal Finance, Reviews, Uncategorized with tags , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , on February 16, 2010 by stanleyriiks

Despite this being an epic book, I expected more.

How can you sum up the Oracle of Omaha? The most successful investor in the history of investing?

For a man over seventy years old, having his life described in a little over 700 pages gives us about a 100 pages per ten years. Even though the first page is so awash with description (of Buffett sitting in his office) that it’s difficult to read, what we don’t get in the full Warren Buffett. We get a version, the tight-fisted, thrifty, intelligent, teacher, who’s more at ease with numbers than he is with human beings, and certainly more comfortable dealing with a class room full of students than he is with his own children. A man obsessed with making money and keeping it. To the point where much of the time his family acted almost, but not quite, as a distraction, and Buffett doesn’t particularly like distractions.

The failure of this book is the lack of detail about some of Buffett’s investments. Probably the most important part of his life, not only for him but also for most of his readers. We get the glamorous stuff, and we also get the dirty stuff, but where’s the detail of the stuff that made him his money?

Most of the information contained in the book can be found on Buffett’s wikipedia entry. The details of his earlier life are interesting, and the milestones he achieved in his early years are quite extraordinary. But I want a map. I want to see what he invested in, at how much and why: I want a description of how he made his billions. I don’t understand how a book so huge and detailed about Buffett’s life but be so bereft of such important details.

For a financial analyst Shroeder doesn’t seem very interested in the money.

This is certainly an interesting book, and Warren’s life as a self-made man certainly holds your attention. But the missing details of his investments, the things that are skipped over, or just not even mentioned, serve to give us only half an image of this great investor.

Buffett is still my hero, with the knowledge gained from this book even more so. We share much in common, he had a paper-round, as did I. Buffett was making money as a child, as did I, once getting in trouble at school for telling my friends toys. Buffett also skirted a bit too close to the law, well, I’m refusing to comment on that! He was also buying shares before he was sixteen. I bought shares in my mother’s name because I was too young to have them in my own. Unfortunately, and I really don’t know what happened (perhaps discovering horror novels), but our paths diverged and I’m not a billionaire.

This is a personal and probably the most detailed of the books on Buffett, and yet it still doesn’t manage to capture the complete man. It does capture most of him, and it’s a moving story, but I almost feel short changed.

Amazing book, and yet still slightly disappointing.