The 3 Simple Rules of Investing: Why Everything You've Heard about Investing Is Wrong # and What to Do Instead Paperback – June 16, 2014

I wish I had read this when I was 20. Fortunately, I now have the chance to gift this book to my 2 daughters in their 20s. What makes this book so valuable is that it matches a perfectly simple roadmap with all the needed counterarguments to shrug off the bombardment of fear mongering from the financial services world that you need help. You don't. You just need a few simple rules. Or, as this book makes clear, 3 simple rules, to be exact.

This was a well written book that helped simplify the complex world of investing. Great examples to clarify complex ideas. Everyone who does any investing should read it.

Personal finance and investing is a crowded space in the publishing realm, and it's rare to find a book that has as much to offer as this one. It has originality, brutal honesty, and simple instructions about how to implement the underlying principles.The authors do not suffer fools, and they call out some of the most deceptive and manipulative practices in the advice industry. They provide a roadmap of sorts - that is designed to steer investors away from the temptations that distract, distort, and confuse.The book provides a detailed and thorough list of seven "Deadly Temptations" that are intentionally designed to create the impression that investing is extremely complicated and the only way to succeed is by hiring an expensive advisor who will tell you what to buy and sell.For example, the authors explain in detail why it's a bad idea for amateur investors (as opposed to full time professionals) to try to beat the market. "You are extremely unlikely to find a manager, an advisor, or a strategy that will enable you to predictably beat the market. It will be even more difficult to know whether you have found one. It will certainly not be worth the cost to try."Notice that they do not say that beating the market is impossible. They said that it's extremely unlikely, and it will carry a high cost to try. I would add that the few professionals who do manage to beat the market consistently, aren't likely to share their secrets with the world and thus create competition for themselves.The cost of trying to beat the market is significant, both in terms of the amount of time it requires and the dues that must be paid as you move up the learning curve, making mistakes that form the foundation of your experience. It can be done, but as the book asks, is that really the wisest use of your finite resources?The other six temptations are equally revealing, and together with the three rules, this book is loaded with valuable and practical advice.

He takes an interesting view on a way to invest and then spends a great deal of time explaining why the other investment ways don't work.

I read a lot of books on finance and this one is among the best. Very well written and right on the point. Every individual investor would benefit largely by reading this book. Kudos to the authors.

The authors provide convincing arguments that should push readers to a world of less stress, less complexity and some satisfaction in knowing that the prescribed simplification results in portfolios that, while not designed to beat the market, will beat the large majority of other potential portfolios when costs are considered. Ultimately it provides a blueprint for avoiding the unnecessary and large cost of most financial industry products.There is a nice mix of proscriptive (e.g. don't do this) and prescriptive. It has good lessons, especially for someone new to investing. I don't recall any formulas or any significant math, just descriptions of the results of the math. This makes it easy to grasp. If there was one area where more could have been provided it would be how to allocate among the very simple instruments. Also, maybe an appendix showing how some of the results in the examples that were provided were calculated. For instance, there is an example showing the simple portfolio in action. Beth wants to guarantee some amount of cash flow and use the market for upside. But unfortunately the detailed how-to calculations are not included: "Either she or her advisor calculates that investing half her portfolio, 50%, in TIPS will secure that guarantee". I have not checked, but maybe detailed calculations exist on their website.

Even though the data is somewhat old, the advice and conclusions seemed on target. I would have liked to have seen more on real estate or other inflation alternatives. However the basic prescription of a mix of inflation indexed bonds and a low cost total market mutual fund.

Good book.It opened my mind to new ways of handling my investments.I thought that the 50/50 mix of a world market etf and TIPS was interesting,plus having never to rebalance.

I’ve read over 100 investment books, have countless financial qualifications and was a financial adviser for 25 years but this book taught me several new ideas, concepts and perspectives. An absolute MUST READ for anyone who wants truth over hype or entrenched thinking. Brilliant!