Investing Demystified: How to Invest Without Speculation and Sleepless Nights by Lars Kroijer

Part one
 Introduction

Chapter 1
 Introduction to markets and
 portfolios
 Our objective
 This book will help you – the rational investor – create a portfolio that will have the
 best returns for any risk level. You will think about risk, taxation and incorporating
 other assets in your portfolio. This approach will result in more cash being available in
 the future through better investment returns than other investment methods. This book
 is about sleeping well at night, confident that you have the best possible investment
 portfolio for someone who can’t consistently outperform the market – and this covers
 the vast majority of investors.
 This is perhaps an unusual book about investments. I will not tell you how
 to analyse company accounts, spot economic trends, identify great products,
 recognise the next hot stock or anything like that. Instead, I will try to
 convince you that you are probably among the vast majority of investors
 who are better off not trying any of that complicated analysis and then I’ll
 tell you what to do with your investments on the basis of that premise. In
 other words, this is a book for investors who have no ‘edge’ over the
 markets.
 In reality, very few investors have the edge to outperform the financial
 markets, where many thousands of investors with access to the best and
 most timely information, analysis and financial models compete. Those
 investors speak to companies, research analysts, economists, traders,
 customers and so on. Then they read any report, web-chat, filing, news
 piece, etc. before they analyse the information using the most sophisticated

Investing Demystified: How to Invest Without Speculation and Sleepless Nights by Lars Kroijer