TRANSPARENT INVESTING

A longtime financial executive explains investing to novices.

In this debut business book, Geddes examines the basic principles of investing, how human psychology is often at odds with sound practices, and how individuals can choose to manage their own assets or hire a financial professional. And even though he has made his career managing the investments of others, the author tells readers that in most cases, they can get the best returns by doing it themselves and pursuing a passive strategy that requires little more than annual maintenance. The volume encourages readers to put their money in index funds rather than trying to pick high-performing stocks or attempting to profit from the rises and falls of the markets, arguing—with supporting evidence—that it is the method that provides the most reliable returns. Geddes recommends concentrating on improving returns by minimizing fees and taxes, showing that these are the ways investors are most able to improve their outcomes. The work also offers guidance for readers who would prefer to hire a professional, with advice on assessing potential advisers and working effectively with them. The author is a strong writer who does an excellent job of stripping away the bluster and complexity that often surround financial advice to focus instead on the fundamentals. The book’s grounding in psychology gives Geddes a theme to return to as he reminds readers throughout the text that although it may feel appropriate to buy and sell in response to changes in the market, resisting the urge will deliver the best long-term results. The balance between details and minutiae is well managed, with plenty of actionable information presented in a comprehensible format. Readers who are already aware of the basics of investing will find the volume an effective refresher and a useful reminder of the value of passive strategies while those without substantial knowledge of the subject will be able to use the work as an effective and engaging introduction.

A solid and well-written overview of how to invest effectively.