Cotter on Investing: Book Review

Cotter on Investing: Book Review
October 12, 2011
R.R.P: £19.99

The 3 Box Test framework for this book keeps things simple and highly effective.

Cotter on Investing is a book which aims to introduce key concepts related to investing in shares without the use of jargon. The author has used the ?3 Box Test? as the framework of this book, which means it has to be simple, make sense and work most of the time.

Author: John Cotter, a financial services veteran with 38 years of experiencing working within the Barclays Group. Currently he serves as Vice President of Barclays Stockbrokers.

Quote of the book:

?The institutions that used to look after us can no longer be relied on to do so; whether this is your employer, the government or the NHS. For Mr and Mrs Average who have aspirations of a quality life both while working and in retirement, the message is clear: if you don?t provide it for yourself then no-one else is likely to do it for you.?

What we like about the book

+ Cotter manages to make what one may deem ?complex concepts?, incredibly easy to understand. His writing style in this book is simple and clear.

+ There are 13 chapters within this book and cover key areas such as shares, ETF?s, and even investment methods such as the PEG ratio.

+ Everything is either backed up with A) a clear example or B) a clear visual chart. This makes for easy digestion of the content.

+ The author?s fascination with ASOS! Referenced numerous times throughout the book and with good reason.

+ Appendices include PEG?s and PE?s of FTSE 100 companies as well as a well-defined glossary of terms which will further enhance understanding of key investment concepts.

What we don?t like about this book

– Some of the content has been unnecessarily ?padded out? into complete chapters such as Director Dealing?s. Would have been great to combine some of these methods together and add in some more chapters.

– This book is not suitable for investors beyond an amateur standing, but it provides a great base for progression.

Final Thoughts

John Cotter has lived up to his billing, and manages to make understanding investment concepts incredibly easy. The combination of examples, visual aids and above all clear writing style makes this book a must read for any newcomers to the world of investment.