Book Review: The Motley Fool Investment Guide

As background, I picked up this copy at my local library book sale. The library decided it needed to let go of some books to make way for digital copies. After having read this book from 1996 which espouses the inevitable and useful shift towards online investment and research, I fully appreciated the irony. Nevertheless, I am a bit old fashioned and love the simplicity of a book in hardcopy format.

I had heard of the Motley Fool and even perused their forums from time to time before picking up this book. The book itself provides a great approach for those looking to begin the descent into the investment pool. This pool certainly is one you want to toe-test and gradually acclimate to. Very few of us like the sudden shock of how cold or shallow a pool can be... and though it sometimes is faster to just leap in, I know I pray I return to the surface after the initial financial (sometimes fatal) shock passes.

David and Tom Gardner try to provide both sides of the investment coin. They may nudge the reader towards their preferences but certainly rest the final decision in the readers hands. The book walks through basics of product offerings, portfolio theory, comparison statistics, and benchmarks. The brothers provide some road signs to warn travelers, especially in a chapter devoted to the biggest circus of all, investing (my personal favorite chapter). The wit and sarcasm certainly add to the charm of this book and the concepts discussed at the Fool's level.

After having read this book I have just one sure-fire insight into the current economy, the Leibniz PreHarmonic Oscillator is showing very strong sentiment readings… which is of course, bearish as usual, since it’s a classic contrarian indicator. Take what you will from this insight but I recommend you read this book first. Enjoy.