Thursday, February 4, 2010

The Lazy Investor - Derek Foster

The Lazy Investor
Derek Foster
Foster, Underhill Financial Press
Copyright: 2007

The blurb from the Stop Working Website:
The Lazy Investor: Start with $50 and no Investment Knowledge was written for beginner investors. The book details a step-by-step plan for you to gradually accumulate wealth over time without falling victim to the high fees many beginner investors pay. A strategy simple enough for anyone to understand and one that runs on “autopilot” once it’s set up. Derek’s children are currently using this strategy to accumulate wealth.
This little book is written for Canadians who are interested in getting started with investing. It's designed for people who are starting with no knowlege of the subject. Which, I have to say fits me exactly. The book is short (I read it through in one evening), and simple. It's also written in a way that made me feel that this is something I can do.

The idea of being able to start investing without needing a lot of money is an intriguing one. The claim on the cover is that you can start with as little as fifty dollars CDN. Inside it turns out to be a bit more, but not by much. The initial purchase as described still comes out to less than a hundred dollars.

The author gives suggestions for some good companies to start with (including their histories) and also goes over the process of getting started and buying your first stock certificates step by step. I haven't gone out and tried it yet, but the process looks like it makes sense and the book is clearly and simply written.

At the back of the book is included a list of further books on the subject that your could read if you want to learn more.

The one thing that makes me a bit hesitant is that the book was written before the great crash of the last couple of years and quite a few of the companies the author looks at are banks. On the other had, they're all Canadian ones and my understanding is that we made it out a lot better than some of the other countries.

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