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The 80/20 Investor: How to Simplify Investing with a Powerful Principle to Achieve Superior Returns
Amazon #1 Bestseller in Wealth Management Are you looking for a simple investment strategy that fits your lifestyle? Do you want to become an independent investor? Tired of the same sales pitches you hear from bankers and investment advisers?
You’re in the right place.
Who is this book for?This book is for all people who are unsatisfied with their own work intensive and at times very complex investment strategies. It’s for individual investors and entrepreneurs who have day jobs and businesses to take care of, and don't want to spend hours in front of computer screens chasing other people's hot investment ideas.
It is also for young professionals who have recently started earning money and are willing to break with the norms of today’s outdated investor culture.
This book is NOT for complete beginners. To understand the key terminology used in this book and understand the core concept of investing, I would recommend reading a primer on investing.
After reading “The 80/20 Investor” you will How to apply the 80/20 Principle to financial freedom and the three pillars of 80/20 Investing.How to reduce your investment workload, by focusing only on the most valuable investment opportunities and achieve better performance than professionals. Learn how to improve your investment decision-making by using the 80/20 principle and effective “mental models.” Find the best investment opportunities by obeying the “investment seasons” and using the “magic categories” to find no-brainer opportunities. And much, much more…The 80/20 Investor, harnessing the power of the 80/20 principle, simplifies investing. In no time, you will learn the basics of investing, how to finance your investments, where to look for “no-brainer” opportunities, understand real investment risk and how to reduce it. This book allows you to enter the seemingly intimidating world of investing, with constructive tips from game-changers-- The Rothschilds, Hetty Green, J. Paul Getty, Henry Singleton, and others.
What people are saying about The 80/20 Investor?"Just as the internet has democratized work, it has also democratized investing. We are raised to believing that investing intelligently is complex and difficult, something best left to professionals. In the 80/20 investor, David shows that for those who take the 80/20 approach, investing is now easier, more fun and more profitable than ever."
- Taylor Pearson Bestselling Author of The End of Jobs
Bonus Package Included The 80/20 Investor “Support Package” contains a convenient overview of all action tasks described in the book along with user friendly checklists. It also contains several case studies on how to apply the key lessons of this book into real investment opportunities and a future investment portfolio.
CHECK OUT AND FOLLOW the 80/20 Model Portfolio with real time case studies and live commentary. See for yourself how this portfolio performs in ever-changing market environments.
You’re in the right place.
Who is this book for?This book is for all people who are unsatisfied with their own work intensive and at times very complex investment strategies. It’s for individual investors and entrepreneurs who have day jobs and businesses to take care of, and don't want to spend hours in front of computer screens chasing other people's hot investment ideas.
It is also for young professionals who have recently started earning money and are willing to break with the norms of today’s outdated investor culture.
This book is NOT for complete beginners. To understand the key terminology used in this book and understand the core concept of investing, I would recommend reading a primer on investing.
After reading “The 80/20 Investor” you will How to apply the 80/20 Principle to financial freedom and the three pillars of 80/20 Investing.How to reduce your investment workload, by focusing only on the most valuable investment opportunities and achieve better performance than professionals. Learn how to improve your investment decision-making by using the 80/20 principle and effective “mental models.” Find the best investment opportunities by obeying the “investment seasons” and using the “magic categories” to find no-brainer opportunities. And much, much more…The 80/20 Investor, harnessing the power of the 80/20 principle, simplifies investing. In no time, you will learn the basics of investing, how to finance your investments, where to look for “no-brainer” opportunities, understand real investment risk and how to reduce it. This book allows you to enter the seemingly intimidating world of investing, with constructive tips from game-changers-- The Rothschilds, Hetty Green, J. Paul Getty, Henry Singleton, and others.
What people are saying about The 80/20 Investor?"Just as the internet has democratized work, it has also democratized investing. We are raised to believing that investing intelligently is complex and difficult, something best left to professionals. In the 80/20 investor, David shows that for those who take the 80/20 approach, investing is now easier, more fun and more profitable than ever."
- Taylor Pearson Bestselling Author of The End of Jobs
Bonus Package Included The 80/20 Investor “Support Package” contains a convenient overview of all action tasks described in the book along with user friendly checklists. It also contains several case studies on how to apply the key lessons of this book into real investment opportunities and a future investment portfolio.
CHECK OUT AND FOLLOW the 80/20 Model Portfolio with real time case studies and live commentary. See for yourself how this portfolio performs in ever-changing market environments.
217 pages, Kindle Edition
Published February 25, 2016
77 people are currently reading
95 people want to read
About the author
David Schneider
8 books14 followersDavid Schneider trained as a banker in Düsseldorf, Germany and has studied financial services in London and Tokyo. He worked in investment banking and asset management in major Financial Centers such as London, Tokyo, and Singapore. Since 2011 he has become an independent investor and a location-independent entrepreneur and writer.
He is the co-host of The 80/20 Investing Show, a financial podcast that discusses all matters of investing, financial markets and personal wealth management.
He is the co-host of The 80/20 Investing Show, a financial podcast that discusses all matters of investing, financial markets and personal wealth management.
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Displaying 1 - 4 of 4 reviews
March 22, 2016
The book proposes a straightforward, simple and easy-to-follow set of principles to guide you in your investing. It's written for individual investors with some experience in investing. For me, as a total newbie to investing, I'd need to supplement this book with additional reading to learn the very basics of investing. If, like me, you're a total beginner, don't expect to learn everything you need to learn from this book. Do expect to learn a simple and memorable investing philosophy that may help you avoid panic, confusion and inefficient investing, later down the line.
August 20, 2018
I’m not sure this is the best way for a private person to invest his money but it is one that I feel very sympathetic towards. Fortunately life is so much more than investing. Thus, there is a need of rational investing that occupies very little time and this is where The 80/20 Investor by the entrepreneur and former banker plus asset manager, David Schneider enters the picture. This is a book that takes the private investor seriously. Not because it is a complex book, on the contrary – but because it trusts him to do the right thing, thinking long term.
The author’s 80/20-investment method is as they say simple but not easy. In a nutshell you are advised to get a steady and regular source of cash flow for example from a job or a business venture you enjoy. Then as early as possible in life start the habit of automatically saving 10% of all your income and put the money aside in an easily accessible account. Further, when – but only when – “no-brainer” investment opportunities present themselves, as good assets sell at low prices, a good chunk of the cash should be invested in these. Diversify somewhat. Live your life in peace. Check up on you portfolio with long-between intervals. Only sell if you realize you have made a mistake, if you feel very uncomfortable with a position, if the asset is severely overvalued or if you are forced to do so due to personal emergencies.
The structural advantage of the method is the ability to go against the general market psychology by using a longer time frame. The investor must bide his time, wait for the right moment and let the market come to him - not the reverse. Risk in investments is real loss of money. Mostly these losses come from overpaying for an asset. The main lurking danger is therefore that the investor’s impatience makes him invest his money before there are any no-brainers offered by motivated sellers that need the liquidity the 80/20-investor has available. To avoid being lured into the short-term competitive rat race, discussions around benchmarks, the performance of friends etc. should be avoided like the plague.
To build wealth it is vital to start saving and investing as early as possible to get the force of compound interest on your side. Investment action is only needed very infrequently so the investor should use the time in-between to read up on prospective investments. Schneider suggests to start looking for investments within one’s personal circle of competence, for example in the sector where one works or in an area of special interest. Otherwise other no-brainers could be found during a global market crisis, a country crisis, an industry crisis, an asset class depression and during a single company crisis. Just read the paper and the leads to an idea will probably be on the front page. Don’t time the bottom, simply buy at good prices.
The book is not without its objections. There is a bit too much space in the first half of the text that makes glorious promises of what will come later and that tries to create cliffhangers, instead of just getting to the point immediately. Perhaps the now 195 pages book would have been considered too short otherwise? Given the intended private investor audience I think the next edition should be 150 pages – it would only add to the book’s impact. Also, please make the print and the pictures somewhat prettier.
I’m not sure if the method actually beats simply constantly investing 10% of your income in an index fund ignoring the timing of the investments. Still, the methodology fits well with how I think and with how I would want to say that I invest. I would claim I pass the test when it comes to keeping a long time horizon and letting the market come to me, but I probably should save more while waiting. Instead I have prioritized paying back mortgage loans. It might not be that rational when interest rates are close to zero but for me it’s a matter of gaining independence.
There might be a specific time to sow and a different time to harvest in the financial markets but the time for buying this book is always.
The author’s 80/20-investment method is as they say simple but not easy. In a nutshell you are advised to get a steady and regular source of cash flow for example from a job or a business venture you enjoy. Then as early as possible in life start the habit of automatically saving 10% of all your income and put the money aside in an easily accessible account. Further, when – but only when – “no-brainer” investment opportunities present themselves, as good assets sell at low prices, a good chunk of the cash should be invested in these. Diversify somewhat. Live your life in peace. Check up on you portfolio with long-between intervals. Only sell if you realize you have made a mistake, if you feel very uncomfortable with a position, if the asset is severely overvalued or if you are forced to do so due to personal emergencies.
The structural advantage of the method is the ability to go against the general market psychology by using a longer time frame. The investor must bide his time, wait for the right moment and let the market come to him - not the reverse. Risk in investments is real loss of money. Mostly these losses come from overpaying for an asset. The main lurking danger is therefore that the investor’s impatience makes him invest his money before there are any no-brainers offered by motivated sellers that need the liquidity the 80/20-investor has available. To avoid being lured into the short-term competitive rat race, discussions around benchmarks, the performance of friends etc. should be avoided like the plague.
To build wealth it is vital to start saving and investing as early as possible to get the force of compound interest on your side. Investment action is only needed very infrequently so the investor should use the time in-between to read up on prospective investments. Schneider suggests to start looking for investments within one’s personal circle of competence, for example in the sector where one works or in an area of special interest. Otherwise other no-brainers could be found during a global market crisis, a country crisis, an industry crisis, an asset class depression and during a single company crisis. Just read the paper and the leads to an idea will probably be on the front page. Don’t time the bottom, simply buy at good prices.
The book is not without its objections. There is a bit too much space in the first half of the text that makes glorious promises of what will come later and that tries to create cliffhangers, instead of just getting to the point immediately. Perhaps the now 195 pages book would have been considered too short otherwise? Given the intended private investor audience I think the next edition should be 150 pages – it would only add to the book’s impact. Also, please make the print and the pictures somewhat prettier.
I’m not sure if the method actually beats simply constantly investing 10% of your income in an index fund ignoring the timing of the investments. Still, the methodology fits well with how I think and with how I would want to say that I invest. I would claim I pass the test when it comes to keeping a long time horizon and letting the market come to me, but I probably should save more while waiting. Instead I have prioritized paying back mortgage loans. It might not be that rational when interest rates are close to zero but for me it’s a matter of gaining independence.
There might be a specific time to sow and a different time to harvest in the financial markets but the time for buying this book is always.
August 22, 2020
The book presents one straight forward way of investing with 'almost' sure 'success'. If you are a newbie in this investment world, having basic knowledge of economics, welcome to a new paradigm, which professionals really don't like (for the fact that they don't like the notion of you taking your own money decisions with minimalist approach).
Now success (in investing) as per the book is not becoming immensely rich or making more money out of your capital or beating the market (benchmarks) or gaining a persistent income overtime , but is rather measured by the quality of time and effort you have put in to gain returns that can beat the market, along with the time you have spend in other chores of life.
As per the author the one sure investment you can make is in your own self, and to your business. To lead a quality life without being overly obsessed with your investments and money is the purest form of success. Of course to make something out of our savings we have to create a cash flow channel that is our existing business and upon which the foundation to investment is made.
The book is targeted at those gainfully employed people who are new to field. Have primary cash flow channel and are not very obsessed with performance.
I have read a few books in recent past and although this book is not as deep on technical aspect it still follows the underlying current the market is facing now. Why put someone else as your money in-charge, when we can safely perform much better by sticking to our "field of competence" and only going for the sure bargain of a life time (No brainier opportunity).
Quite an nice guide on patience and having faith in your underlying decision.
Recommending as an early book to newbies, but after you have got some exposure from other sources first to get a prior understanding of underlying reason for the authors recommendation on any particular issue.
A nice filler book after that bulk of load/information any new investor get from other sources which are at times overwhelming with their technical aspects.
On a side note: Made my first No-brainier bargain investment before reading the book although book provided me the insight that it was my personal No-brainier investment and to only stay on lookout for something like those (although on hindsight I made a couple of mistake of not adding further position on downside and selling too early initially. Corrected it later.)
Now success (in investing) as per the book is not becoming immensely rich or making more money out of your capital or beating the market (benchmarks) or gaining a persistent income overtime , but is rather measured by the quality of time and effort you have put in to gain returns that can beat the market, along with the time you have spend in other chores of life.
As per the author the one sure investment you can make is in your own self, and to your business. To lead a quality life without being overly obsessed with your investments and money is the purest form of success. Of course to make something out of our savings we have to create a cash flow channel that is our existing business and upon which the foundation to investment is made.
The book is targeted at those gainfully employed people who are new to field. Have primary cash flow channel and are not very obsessed with performance.
I have read a few books in recent past and although this book is not as deep on technical aspect it still follows the underlying current the market is facing now. Why put someone else as your money in-charge, when we can safely perform much better by sticking to our "field of competence" and only going for the sure bargain of a life time (No brainier opportunity).
Quite an nice guide on patience and having faith in your underlying decision.
Recommending as an early book to newbies, but after you have got some exposure from other sources first to get a prior understanding of underlying reason for the authors recommendation on any particular issue.
A nice filler book after that bulk of load/information any new investor get from other sources which are at times overwhelming with their technical aspects.
On a side note: Made my first No-brainier bargain investment before reading the book although book provided me the insight that it was my personal No-brainier investment and to only stay on lookout for something like those (although on hindsight I made a couple of mistake of not adding further position on downside and selling too early initially. Corrected it later.)
April 10, 2017
I think that this is a good book for someone who has not studied finance. I cannot say that I have learned a lot out of this book but it gave some practical tips that can surely be useful in the future
Displaying 1 - 4 of 4 reviews