A concise guide to personal finance and investing.
Investment expert and CEO Pecaut (University of Berkshire Hathaway, 2017, etc.) states at the book’s outset that he’s aiming to present timeless principles about how to think about and handle money. The book’s first section includes basic concepts, such as compound interest and the importance of saving. The second section is aimed at readers looking for a deeper dive into investment. The author writes from the perspective of a Warren Buffett-inspired investor who looks at the fundamentals of a company (such as price-to-earnings ratios) to find moneymaking opportunities. The third section takes a turn away from other, more traditional books on money management to offer insight on giving to charity. This advice is far from abstract and draws, in part, on the author’s own experiences with micro-lending. Taken as a whole, this book is a well-rounded guide to personal finance. Although some elements are familiar from other, similar works (including Albert Einstein’s oft-cited quote about compound interest being the eighth wonder of the world), the book offers nuanced advice that goes beyond simply getting out of debt and saving 10 percent of one’s income. For instance, Pecaut advises would-be investors to look hard at specifics of a company other than the raw numbers. For example, who’s in charge of the company? Is it just a hired hand or someone fully concerned with the company’s success? The book’s surprisingly personal section on giving is another highlight. Regardless of the topic, it unfolds in simple, straightforward language throughout.
A brisk, practical take on money management.