Do you find investing to be complex to understand? Would you like to know more about investing in real estate or a small business? Eric Tyson's book Investing For Dummies discusses these investments and more. His writing is clear and concise so a beginning investor can easily learn how to invest.
One of the things I really like about this book is its section on real estate investing. Tyson clearly explains both the pros and the cons of choosing to invest. I particularly like the section describing being a landlord. Too often an investor only hears the good news about real estate. The truth is that real estate investing can be a lot of work.
For example, one factor to keep in mind is that vacancy rates need to be accounted for in estimating income. It is normal to have a vacancy at least some of the time. An investor who does not factor this in will see his or her profits from rental income adversely affected.
Investing for Dummies also covers the topic of investing in a business. There are a lot of considerations when choosing to open your own business. The book does a nice job of covering how a business can be a good investment. It also gives a good overview of the financial costs and problems a business can incur.
Not interested in real estate or opening a business? Investing for Dummies also has sections on stocks, bonds and mutual funds. It focuses more on buying individual stocks. The book shows where to get information on a stock. It explains what an annual report is and gives a basic overview of how to read it. I like the example of how to read a stock price quote in the newspaper or online.
One final section I like is on how to evaluate risk and return. The author shows historical returns for different asset classes. He explains how to factor in the investor's personal risk factors and profile. Knowing your personal risk profile goes a long way to determining your investment success.
I would recommend this book. It is very good for a beginning investor to read. It gives a nice overview of the investing options out there. The real estate and small business sections are particularly good for anyone thinking of investing in either area. It pays to learn about any investment before you pursue it. Investing for Dummies gives good and easy-to-comprehend information.
I borrowed this book from my local library to do this review.
This book is available at Amazon.com.
Also available in Kindle Edition: