Tuesday, June 23, 2009

Book to Learn About the Stock Market for Kids and Adults

Today I’m sharing a book recommendation from my husband who has a Wall Street related career including working as a securities analysis and doing portfolio management. He recently finished reading a book called “The Little Book That Beats the Market” by Joel Greenblatt.

Greenblatt, founder and managing partner of a Gotham Capital, wrote the book to explain the stock market and investing to his eleven year old son. The publisher targeted the book to ADULTS despite the fact that it was written for a CHILD. The book jacket states it can be read in about two hours. It is under 150 pages, with a small sized page and plenty of white space on each page. My husband feels that the book can be equally understood by an adult and an (interested) preteen or teen.

My husband said the book summarizes what it took years for him to learn through job experience (and he wished someone had told him all this before he started working on Wall Street). He said Greenblatt did a great job of telling just the right amount of information to get the point across using simple and effective explanations. The book wastes none of the reader’s time, it cuts to the chase.

So if you are an adult who wants to learn more about the stock market and you have two hours to spare, read this book. For parents, including homeschooling parents, know that this book can be read by or aloud to your child of about age eleven if they desire to learn more about the stock market. The fact that the author is a person passionate about this field qualifies this to be what Charlotte Mason calls a “living book”.

There are a few other titles in the “little books” series (written by different authors, each a specialist in that field). My husband read the value investing book first and said it is a very good book to read after the basics are known through your life experience or by a layperson after reading “Beats the Market”. My husband has not read the other titles yet and can’t comment.

The Little Book of Value Investing by Christopher Browne

I plan to read this book and to have my homeschooled eleven year old son read it too. I may choose to do it as a read-aloud so my reading can get done that way too. Also we’ll have discussions with my husband.

This will also be a good introduction for children participating in the competition “Connecticut Stock Market Simulation” which schools and homeschools can participate with. Check in your state to see if a similar program exists. Connecticut runs the competition in the fall and spring.

We have not yet read “The Little Book of Common Sense Investing” by John Bogle or “The Little Book That Makes You Rich” by Louis Navellier and Steve Forbes.

Disclosure: We obtained this book for our family’s personal use by swapping it with another reader through PaperBackSwap.
PaperBackSwap.com - Book Club to Swap, Trade & Exchange Books for Free.

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1 comment:

Sebastian said...

Those look interesting. I enjoyed reading Freakonomics last year and just recommended it to my son. Basic Economics by Thomas Sowell is also a very well done book, although more about economics in general than the stock market. Our library has the 3rd edition, which includes a set of study questions in the back (with page numbers for reference), so it could be a good text for an economics course.