Book Review: 42 Rules of Sensible Investing
Valuable Insight into Investing During a Recession
In early October 2008 when Shirman completed his first draft of the book 42 Rules of Sensible Investing (Superstar Press, December 2008, ISBN 978-1-60773-008-8) theUnited States had hit the greatest financial crisis since the 1929 Great Depression. History seemed to be repeating itself as individual and institutional investors worldwide panicked but this time the Internet seemed to make everything worse with its 24X7 availability of real time information. A year later, many are either still in shock or by now simply numb by what happened to their retirement, 401K, stock portfolio, and future plans.
In his book Shirman is a realist about the current crisis. While it does not go unnoticed he acknowledges the irony of the situation—writing rules for investing during a financial crisis—and stays focused on delivering a valuable reference guide for investors of all ages and experience levels. As a managing partner of Etalon Investments, a fund he started in 2002, he is no stranger to the fear everyone was/is experiencing. He realized first and foremost the need to control emotions (Rule 14) and get real about what was going on and what needed to get done to survive and eventually thrive. Shirman writes about investing principals that can be used to evaluate anyone’s portfolio and immediately implement changes if necessary, no matter the economic conditions of the day.
Recession Investing Made Easy
“In 42 Rules for Sensible Investing, I compiled practical approaches and techniques that I used over the years into a number of concise and easy-to-follow rules. The rules themselves are not new. I am sure many people have been or are using them, either consciously or subconsciously,” said Shirman. “Some of them I arrived at by personal trial error. Some I consider to be common sense. And some were inspired by strategies used by successful investors like Benjamin Graham, Warren Buffett and Peter Lynch.”
Throughout the book Shirman provides knowledge, guidance and advice on investing so that the reader has the foundation from which to build their own investment strategies and personal vision that’s right for their own individual situation.
Ideal for Experienced Investors and Beginners
Unlike so many personal investing books that can require some advanced education to understand the language Shirman has created a book that is so reader-friendly that the style of the language flows like a friendly coffeehouse conversation complete with a handy check list that can be referred to over and over again. Even he admits that this book is a “condensation of valuable investment ideas—Cliff Notes on investing.”
In fact Bert Frydman, author and consultant and former chairman of the board for Valley Credit Union says Shirman’s book is a, “…clear, easy-to-read, objective and balanced review of the basic fundamentals of investing. It is ideal and essential for the novice and a helpful reminder for the experienced investor.”
The presentation of the book makes it easily conducive to being a desktop reference guide that can be kept within reach or easily fit into a top desk drawer. All of the rules are clearly explained in two pages or less. The book itself is perfect bound paperback, size 8 ½” X 5 ½”, and only 95 pages long including the easy-to-read and reference Appendix. Published by Superstar Press the book is available on Amazon.
42 is the Answer
To the cult following of The Hithhiker's Guide to the Galaxy (Adams, Harmony, 25th Anv edition, 2004, ISBN-13 978-1400052929) the number 42 is the answer to the ultimate question of life, the universe and everything. To the publishers at Superstar Press and its contributing authors, the Hitchhiker’s Guide’s meaning of 42 has provided a launching pad for a series of books authored by independent professionals from a wide range of disciplines. If 42 really is the answer to life’s biggest questions then Shirman’s creation of 42 rules for investing during these tumultuous times is fitting.
About Leon Shirman
Prior to launching his investment career, Leon Shirman worked in prominent high-tech companies, such as Sun Microsystems and Microsoft, and in start-ups, including one he founded. His research has yielded a number of publications in scientific magazines, as well as numerous U.S. patents. Shirman earned his Ph.D. in Applied Mathematics from the University of California at Berkeley and turned his attention to investing in 1987 after the market crash that year. His weekly blog Sensible Investing provides a real time compliment and ongoing update to the information in the book. Shirman is the founder, managing partner and major investor in Etalon Investments.
42 Rules of Sensible Investing is a Must Read
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