Rating:		5/5	Finance

The Art of Execution

by Lee Freeman-Shor

As a casual investor that wants to take a long term view in terms of stock and share investments, I assumed that books like this one would be more suited to serious money managers and day traders rather than someone like me. However the information in this book would be hugely beneficial to anyone that wants to invest in stocks and shares; regardless of their level of experience and knowledge.

The basic premise of the book is to describe three key personality traits that define three broad categories of investor and to explain the most successful investment strategies that align with each of those characteristics.

The book is packed with many anecdotes and actual trading examples which clearly explain the successes and failures of different money managers; many of whom lose on most of their investment bets but rely on their strategies and one or two major upsides which then provide gains that more than offset any losses on other stocks in their portfolio.

One key message is to have a plan or strategy that you are comfortable with and to follow through on that strategy; especially when it means closing our a position that puts you into a loss and not to dwell on it but instead focus on the next investment opportunity.

Another message is to avoid spreading your investment pot over too many stocks and to focus instead on fewer than you might expect. The idea being that wins on any one stock will greatly amplify your overall portfolio gain, while a loss can be capped depending on your investment strategy.

I found the book both highly informative and very clearly written with some great examples of successes and failures. I have to keep reminding myself to return to it every few months to ensure that I continue to follow the advice given.

Highly recommended for its conciseness, accessibility and simplicity.