In a nutshell, “How to Own the World” is a beginner’s guide to investing, and it was exactly the book that I was looking for!
Why this book?
I knew that I wanted to begin investing, but I didn’t know anything about how to invest.
In these situations, you can consult a financial advisor who can help you with this kind of thing, but I wanted to learn more about it myself. In short, I wanted to increase my own financial education.
There are plenty of books out there on investing, including the very famous book by Benjamin Graham, “The Intelligent Investor”, but I needed something for a complete novice.
After doing a bit of research, I ended up with this book and it was perfect for me! Needless to say, I made lots and lots of notes and My Book of 100 Books workbook was filled on every line!
About the book and author
Although this is a professional investment book, the book began its life as a self-published read. (I do like it when people take action to publish their own books rather than waiting for that ‘book deal’ moment.)
The book is now in its third edition.
Andrew Craig, the author, is an investment manager and founder of the website PlainEnglishFinance.co.uk which you can visit to find out more about this book and his investment methods.
The title of the book, “How to Own the World”, comes from the premise of having investments all over the globe and therefore ‘owning the world’.
What you will learn
Firstly, the book is very clear on why learning this stuff is important for your future and financial security. Secondly, it reiterates that with a little bit of know-how you are more than capable of managing your finances on your own.
Once that’s out of the way, the book then covers various different asset classes and ways to invest including:
- Insurance products
- Foreign exchange
The author explains how all of these options came to exist, what they all do, and who should be investing in what.
He also covers what costs you should be aware of when investing in various asset classes. Costs such as one-time fees, entry fees, exit fees, management fees, and, of course, inflation.
Two investment methods
After educating you on how investments work and the various asset classes available, the book then provides you with two investment methods that you can follow should you wish to do so.
The first method is the “set it all leave it” method. As the name suggests, you simply choose your investments and leave them alone. At most, you may re-visit your portfolio 2-4 times throughout the year to re-balance it.
The second method is a little more hands-on and for those who wish to trade more frequently.
You can choose whichever method is most suitable for you, depending on how much time you have available.
My experience with investing
I knew nothing about this subject whatsoever before I read this book.
To give you an example, I undertook a dry run a year or so ago by opening an account via an investment app that allows you to trade with dummy money. I managed to lose my pretend £50k in just a few months! I’m not even sure how I did it.
However, since reading this book, I have indeed opened my own investment account and created a portfolio, using real money this time. And I’m pleased to say that my portfolio is actually making me money, despite the current market volatility thanks to the Coronavirus pandemic.
My overall thoughts
This book was exactly what I was looking for. As someone who previously couldn’t tell you the difference between a share and a fund, I now feel as though I have a good-enough basic understanding to make my own decisions on how to invest my money.
Although I still have much to learn about this topic, this book has given me a good foundation from which to build upon.
A great book that I would recommend to anyone who is new to investing and is wondering where to start.
Have you read How To Own The World?
This book review is my personal opinion and experience of How To Own The World.
If you’ve read this book, share your thoughts in the comments section, and leave the book your own review in the box below.
Also, please let me know if you have any other book recommendations when it comes to learning more about how to invest. I’m keen to learn more about this subject.
How to Own the World
A beginner's guide to investing. This book explains the various investment assets (stocks, bonds, funds, property, commodities, etc), outlines how they work, and who should be investing in what. As someone who previously couldn't tell you the difference between a share and a fund, I now feel as though I have a good-enough basic understanding to make my own decisions on how to invest my money.
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