Uncommon Sense: Investment Wisdom Since the Stock Market's Dawn

by M Kemp, Scott Pape (Foreword)

Question everything – and become a better investor in the process Uncommon Sense takes readers on a four-century journey; from the dawn of public share ownership (in 1602) right up to today. But this is not simply a history book. It's a book for serious investors. Along the way it reveals the fascinating stories, the market characters and the important financial developments that have sculpted the thinking behind the value investor's craft. Blended throughout the narrative Kemp delivers an array of interesting anecdotes and rock solid logic regarding what works when investing in the stock market, what doesn't, and why. Early in the 20 th Century, Charles Dow remarked of Wall Street Operators that 'the more they actually know, the less confident they become.' Continuing in the tradition of that simple, elegant statement, this enlightening and entertaining book will have you thinking, acting and succeeding on your own in your investment endeavours. Uncommon Sense will have you questioning and doubting much that's stated about stock market investing, then developing your own winning strategy based on reason and understanding.

368 pages, Paperback

First published December 2, 2015

Reviews

[Gary Morris · Rating 5 out of 5]

One of the best books on the Stock Market that I have read to date

[Joel Gray · Rating 3 out of 5]

UNLIKE MOST MARKETS THE SUPPLY OF STOCKS DOESNT CHANGE MUCH SO ITS REALLY THE DEMAND FOR STOCKS THAT MOVES PRICES. IF DEMAND FALLS YOU CANT REDUCE SUPPLY MUCH TO COMPENSATE SO YOU GET A BIG FALL IN PRICES.

I haven't met a good investor who wasnt driven by the need to learn and to keep learning.

Bucket shops were where you bet on SP movements but didn't ever own the physical.

Livermore made $100m shorting the market in 1929. He filed for bankruptcy in 1934. He took his own life in 1940 aged 63.

Being contrarian doesn't mean always running against the crowd, it means questioning the actions of the majority.

The most important inputs are insightful subjective judgements regarding a company's future business prospects.

The DJ didn't recover from its 1929 level until 1954.

From 10/29 to 7/32 the DJ fell 89%.

Humans behave in appropriately when interacting with the financial markets because their instincts were shaped in an environment of physical risk, not financial risk. Markets are a very recent phenomenon in the history of the world.