Investing Demystified, 2nd Edition

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 ...