Fortunately, understanding saving, investing, and
our financial system works is straightforward. One key is
to get the complete picture. The other
is to understand how things work.
Much of the financial world is based on win-win
structures that allow savers and other market participants to benefit. Understanding these fundamental concepts is crucial to understanding
what is happening and what might happen next. These concepts are consistently used by people that become rich and that stay
that way.
The book looks at:
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Savings
growth through compounding;
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How debt grows through compounding (usually even faster);
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Why money compounds;
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How users of capital like
companies and governments interact with savers;
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Equity and debt;
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Stocks and bonds;
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Why financial markets are
so important;
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Equity and bond markets and their indices;
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Mutual Funds/Unit Trusts;
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Hedge Funds;
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Real Estate including Real Estate Investment Trusts (REITs);
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Other
investment choices including commodities and art;
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The economy;
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Central banks;
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Economic cycles and how they can impact investments;
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Practical
considerations such as time horizons, timing of investments, taxes, compounding,
diversification and transactions costs;
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Getting started.