I’m often wondered if my broker was speaking a foreign language. She’s a wonderful person and she tries so hard to explain the stock market to me. None of it ever makes sense. Mariusz Slonieczny begins his book by explaining the difference between stocks and businesses. “Stocks are a way to be an owner of a company. If a business performs well over time, its stock price will appreciate to reflect the value of the underlying business.”
He continues by explaining how a business makes investors money. What to look for in a business and how to assess its value. “Valuations depend on factors such as discount rates, growth rates, and terminal values. “
Skonieczny includes diagrams to assist the reader in understanding his statements. Why Are We So Clueless About The Stock Market is written in simple easy to understand terms. The author begins with the basics. There is one major area in which the author and I disagree. He discourages readers from investing in mutual funds. Investors with amounts under 50000 to invest should stick with the security mutual funds offer. I think this book will be a great benefit to investors.