More Straight Talk on Investing

1Successful Investing Is Easier Than You Think

Successful investing is not difficult. But it can seem intimidating. Some assume that you have to be rich or possess an advanced degree to accumulate wealth as an investor. They think you have to be able to understand all the topics covered in The Wall Street Journal—the ups and downs of the stock markets; the interest-rate decisions of the Federal Reserve Board; corporate earnings announcements and dividend policies; the meaning of economic indicators; and so forth. All of these things have meaning, but you don't have to follow them closely to invest successfully. In reality, investing is easier than most people think.

The purpose of this book is to give you the understanding you need to accomplish your financial goals through investing. Over the past 40 years, I've talked to tens of thousands of successful investors. They come from all backgrounds and all stages of life. Some are young; others are old. Some are sophisticated; others are unsophisticated. Many have elite undergraduate and graduate educations; some never went to college.

Despite their differences, all the successful investors I've met share several traits, beginning with a very important one: They invest with confidence. They don't spend their lives searching for a get-rich scheme or investment gimmick that will lead them to a pot of gold, or worrying about what other people are doing with their money. Frankly, they really don't care—nor are they influenced by—how ...