How to Own the World: A Plain English Guide to Thinking Globally and Investing Wisely: The new edition of the life-changing personal finance bestseller

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Discover the money secret understood by virtually every rich person in history. Turn hundreds into millions through the power of compound interest. The great thing about the foreign exchange markets is that “there is always a bull market somewhere”. Second, it provides asset class diversification. This offers a similar level of risk reduction, particularly when asset classes show some level of negative correlation.

Just as with earnings yield, dividend yield is simply the percentage return you get if you divide the money you have invested in your shares by the money you get from your dividend. When you look at a company, it is important to look at how much that company has traditionally paid out in dividends and what analysts think it might pay out in the future. The book value can be divided by the number of shares to give an idea of the value of existing assets that each share is entitled to. This ratio is called “price to book”. One of the biggest mistakes people make with their investments is that they tend, in the main, to own assets from their own country. A lot of people do not feel confident with their financial decisions and seek advice from others however be aware of what you are being sold as most financial advisors take a cut of investments they advise EG: insurance.Earning yield is the amount of profit you are entitled to each year, expressed as a percentage of the price you paid for your shares. Arguably the most important reason why most people fail at investment is that they fail to own a sufficiently wide range of investment products. Having a wide range of shares from all over the world, as well as property, bonds, and commodities, gives you the best chance of consistent success.

I have read many finance books over the years however I do not consider myself to be a financial expert. Craig’s book on how to own the world really opened up my eyes to the world of finance, how to invest, diversify, and make money work for you.

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Hedonic adjustment: e.g. reducing a price in the calculation according to the perceived utility of the product. Investing in financial markets without knowing what you are doing is like driving on a motorway before you have learned how to drive. The book taught me the importance of diversification in your portfolio, so straight after this I’ll be looking in to commodities like gold and also the importance of tax efficiency. So I’ll also be setting myself up with an ISA. Thankfully this book is a UK focus, unlike PIAR I’ve read before this.

Don’t get me wrong, this book is probably the heaviest financial book I’ve read. There are times, particularly the last chapter where I felt lost - which is okay. This book is so bad. It's full of half-true stuff presented as amazing insights to prop up the author's doom-mongering and sell his wealth management services. He's like a financial Deepak Chopra - every once in a while he says something pithy and sensible, and it's enough to keep you reading the rest of the bilge. The book could be useful to a complete novice who hadn’t decided if they want to invest and forget or day trade FX in their underwear.An ISA account is simply a type of investment account in which the government lets you invest a certain amount of money each year. Here’s a table of gold vs UK house prices, which makes gold look like a much better store of value: Plain English Finance exists because of one simple truth: Understanding finance is the single most important factor for your financial success. One of the fundamental truths of capitalism is that capital makes a great deal more money than labour—people who own businesses tend to make far more money than people who work for them.