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The Financial Times Guide to Investing: The Definitive Companion to Investment and the Financial Markets
'The most damaging half truth for savers is “performance matters more than expenses”. Read this book carefully and the financial services industry will have one fewer easy victim, but you will have a sound base for a lifetime of successful investment.'
Martin White, Chair of UK Shareholders Association
This is one of those great big books to buy and then tuck away for constant reference. It's a tour through everything from managing a portfolio to establishing a fair intrinsic value for a share. If it moves in the world of investing, it’s probably here.'
David Stevenson, 'Adventurous Investor' in the Financial Times
‘Informative and easy to read, Glen Arnold has produced arguably the most comprehensive book there is today on stock market investing and one that unquestionably will give an edge to any retail investor. This is a must read for anyone serious about investing.'
Simon Thompson, Companies Editor, Investors Chronicle
AN UPDATED VERSION OF THE BESTSELLING INVESTING BOOK IN THE UK
The Financial Times Guide to Investing is the definitive introduction to the art of successful stock market investing by debunking the myth that investing is only for the wealthy.
Bestselling author Glen Arnold covers the basics of what investors do and why companies need them, through to the practicalities of buying and selling shares and how to make the most from your money. Learn how to understand different types of investment vehicles, pick the right companies and understand their accounts so you can compile and manage a sophisticated portfolio.
The fourth edition of this investing classic has been thoroughly updated and will give you everything you need to choose your shares with skill and confidence.
New for this edition:
Updated insights into the inner workings of stock markets, new accounting rules and dangers to watch out for when looking for investment gems Recent Financial Times articles, and the latest statistics to illustrate and expand on case studies and examples Detailed updates of changes to tax rules and rates
956 pages, Kindle Edition
First published January 1, 2004
170 people are currently reading
557 people want to read
About the author
Glen Arnold
65 books26 followersGlen Arnold is a businessman, investor and professor of investment at the University of Salford. He is the author of numerous finance and investing books.
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Displaying 1 - 10 of 10 reviews
December 13, 2019
Dry and very extensive but also very useful. I enjoyed the book thoroughly, some chapters were too difficult to follow so I'd recommend people to take a small introduction to economics and management to get the terms. The indexes and equations chapter was very nicely explained with lots of examples.
Some may not apply to those living outside the UK and it may need to update according to switches in the market. But overall it's a very good book.
Some may not apply to those living outside the UK and it may need to update according to switches in the market. But overall it's a very good book.
May 18, 2014
Describes most of the famous investments in an easy-understandable manner. Has a plethora of links to external sources in case one want to learn more. Gives a good description of investment company types including funds, trusts, banks.
December 31, 2022
Good to learn the fundamentals, but it's too focused on UK and is afraid to show mathematical formulas. It mostly focuses on shares instead of mutual funds.
April 12, 2023
v focused on the UK market which is what I wanted.
was good to learn more about how the UK market is regulated (e.g. FCA, how companies can get listed on the Main Market) and the different tax / regulations for diff investment products. skimmed the bits about how to analyse a company since it covered the porter 5 forces & some generic ratios like Sharpe.
I did not know that FTSE = Financial Times Stock Exchange.... also learned about Building Society Account and Investment Club Accounts.
"In the UK we define shares as equity in companies – the ‘risk capital’ as described above. Stocks are financial instruments that pay interest, such as bonds. "
was good to learn more about how the UK market is regulated (e.g. FCA, how companies can get listed on the Main Market) and the different tax / regulations for diff investment products. skimmed the bits about how to analyse a company since it covered the porter 5 forces & some generic ratios like Sharpe.
I did not know that FTSE = Financial Times Stock Exchange.... also learned about Building Society Account and Investment Club Accounts.
"In the UK we define shares as equity in companies – the ‘risk capital’ as described above. Stocks are financial instruments that pay interest, such as bonds. "
November 24, 2023
As a relatively beginner investor, I've found this book to be incredibly insightful and useful. I will definitely be dipping back into this book over time, especially the glossary. Yes, there are some complicated terms if you're not a financial guru but the explanations are in clear English that even I as a beginner can understand. I very much liked the story of Mr Stephenson and Mr Brunel!
This has definitely helped me on my journey with investing!
This has definitely helped me on my journey with investing!
March 18, 2020
A solid reference for navigating the financial world. Centered around investing in the UK.
Read
November 15, 2020I have the second edition from 2010 (the third edition went to print in 2014).
At page 11, we have: "Market makers,...follow strict codes of behaviour." How concerned should we be about that?-ty.
At page 202, we have: "A derivative instrument is an asset whose performance is based on (derived from) the behaviour of the value of an underlying asset (usually referred to simply as the 'underlying'). The most common underlyings are commodities (e.g. tea or pork bellies), shares, bonds, share indices, currencies and interest rates. Derivatives are contracts which give the right, and sometimes the obligation, to buy or sell a quantity of the underlying, or benefit in another way from a rise or fall in the value of the underlying. It is the legal right that becomes an asset, with its own value, and it is the right that is purchased or sold."
What else may be significant in relation to the asset-as-right-and-obligation-as-possible-liability argument?
A readable introduction to the rights and obligations of actors in the capital markets: a Barclays covered warrant example is shown on p246. The distinction between a speculator and an investor is drawn at the top of p252.
At p253, we have: 'In May, Entrenched [PLC, run by the well-respected, highly experienced Chief Executive, Sir John Wiseman] completed at GBP700m share buy-back. Sir John said that the company is throwing off cash and shareholders could probably use the money more effectively than the company. Quote We do not want to grow the business just for the sake of growth - we must generate a return greater than our investors could obtain investing elsewhere with that money to justify expansion. end-of-quote.' Who would like to go first?
Concerning the net profit at p263, to what extent is it clear which indicia of virtue govern the dividends paid out on preference shares?
On p269, we are invited to consider: 'What proportion of any increase in profit is swallowed up by ever larger investments in fixed assets, debtors and stocks needed to maintain earnings growth? If all of the cash is being absorbed, what is going to be left for dividends?' and so, which pathways are available readily to set, articulate and implement a proper and decent dividends policy? What else may be significant in this context?
On p272, we have: 'Example of a profitable company forced into liquidation.' How would this firm be best advised before liquidation and during any restructuring? What else may be significant in this context? Quoth Arnold at p272: 'Examine the [chairman's] statement not for what it contains, but for what it leaves out.' Yay, indeedy.
At page 11, we have: "Market makers,...follow strict codes of behaviour." How concerned should we be about that?-ty.
At page 202, we have: "A derivative instrument is an asset whose performance is based on (derived from) the behaviour of the value of an underlying asset (usually referred to simply as the 'underlying'). The most common underlyings are commodities (e.g. tea or pork bellies), shares, bonds, share indices, currencies and interest rates. Derivatives are contracts which give the right, and sometimes the obligation, to buy or sell a quantity of the underlying, or benefit in another way from a rise or fall in the value of the underlying. It is the legal right that becomes an asset, with its own value, and it is the right that is purchased or sold."
What else may be significant in relation to the asset-as-right-and-obligation-as-possible-liability argument?
A readable introduction to the rights and obligations of actors in the capital markets: a Barclays covered warrant example is shown on p246. The distinction between a speculator and an investor is drawn at the top of p252.
At p253, we have: 'In May, Entrenched [PLC, run by the well-respected, highly experienced Chief Executive, Sir John Wiseman] completed at GBP700m share buy-back. Sir John said that the company is throwing off cash and shareholders could probably use the money more effectively than the company. Quote We do not want to grow the business just for the sake of growth - we must generate a return greater than our investors could obtain investing elsewhere with that money to justify expansion. end-of-quote.' Who would like to go first?
Concerning the net profit at p263, to what extent is it clear which indicia of virtue govern the dividends paid out on preference shares?
On p269, we are invited to consider: 'What proportion of any increase in profit is swallowed up by ever larger investments in fixed assets, debtors and stocks needed to maintain earnings growth? If all of the cash is being absorbed, what is going to be left for dividends?' and so, which pathways are available readily to set, articulate and implement a proper and decent dividends policy? What else may be significant in this context?
On p272, we have: 'Example of a profitable company forced into liquidation.' How would this firm be best advised before liquidation and during any restructuring? What else may be significant in this context? Quoth Arnold at p272: 'Examine the [chairman's] statement not for what it contains, but for what it leaves out.' Yay, indeedy.
August 16, 2013
i like it.
This entire review has been hidden because of spoilers.
December 5, 2015
Didn't finish it but manage to have some basic concepts on the plethora of the financial products.
August 11, 2011
Good revision of Financial Strategy from the other side of the fence
Displaying 1 - 10 of 10 reviews