As a financial journalist for 25 years, I'm constantly asked to review investment books. Due to time constraints, I generally don't. However, in the case of Mark Skousen's Investing in One Lesson, I found it well worth the time to both read and report on his new work.
Throughout the book, Mark systematically eliminates all the "noise" that makes investing appear overly complex. By simplifying many concepts that investors often view as incomprehensible, he leaves readers with a clear understanding of the difference between price and value, a company and its stock, and a business venture from a publicly traded entity.
When he begins teaching his investment classes at Rollins College and Columbia University, Mark Skousen holds uptwo pieces of paper -- a lottery ticket and a stock certificate. He asks, "Are these mostly the same, or are they mostly different."
Knowing the answer to this seemingly simple question could be the difference between investment success and failure.
It's a must read for the novice investor who frequently does not understand the counter-intuitive notions that a good company is not always a good stock or that good news does not necessarily spell higher prices for a company's shares.
Even for the most experienced investor, he offers compelling insights into the "efficient" market, investor psychology, the real stories behind the 1987 crash and the Internet bubble, the pros and cons of technical analysis, the misconceptions of growth versus income, and an in-depth look into his unique brand of contrarian analysis.
Despite a world of increasingly "sophisticated" computer models and technical strategies, Mark's exceptional new work helps remind us all that a combination of experience, knowledge and common sense remain the long-term investor's most important ally.
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