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    Investing in Shares for Beginners: Unlock the Power of Passive Income
    Investing in Shares for Beginners: Unlock the Power of Passive Income
    Investing in Shares for Beginners: Unlock the Power of Passive Income
    Ebook110 pages1 hour

    Investing in Shares for Beginners: Unlock the Power of Passive Income

    By Jackson Kruger

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    About this ebook

    Are stocks and shares a mystery to you? Do you dream of a financially abundant future where you can live life on your own terms? This accessible and straightforward guide demonstrates how stock markets can be used to generate passive income streams - money that comes to you for doing nothing at all! Over the long term, you too can build incremental cash flows and work towards true independence and freedom!

    This book includes the following:

    PART 1: The Rational Basis for Income Investing

    >My Journey: Better Late than Never!

    >The Pursuit of Wealth: A Moral Conundrum?

    >The Spectre of Inflation

    >Government and Pensions Won't Save You

    >Investing and Speculation: An Important Distinction

    >The Power of Compounding: Building Cash Flow

    >Developing an Ownership Mindset

    >Getting Started: Taking the Reins

    PART 2: Stock Selection and Valuation Principles

    >Dividends: The Cornerstone>Market Valuation

    >Financial Health

    >Management Effectiveness and Quality

    >Margin of Safety and Economic Moat

    PART 3: Putting Things into Practice

    >Building a Portfolio from Scratch

    >International Investing: It's a Big World Out There

    >Passive Investing Strategies: Taking a Back Seat

    >A Word on Mutual Funds

    >Mortgage or REIT?

    >When to Sell

    >Evaluating Performance and Success

    >Closing Thoughts and Reading List

    LanguageEnglish
    PublisherRising Tide Press
    Release dateApr 22, 2019
    ISBN9781916462939
    Investing in Shares for Beginners: Unlock the Power of Passive Income

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      Book preview

      Investing in Shares for Beginners - Jackson Kruger

      Investing in Shares for Beginners

      Unlock the Power of Passive Income

      by Jackson Kruger

      Copyright © 2019 by Jackson R. Kruger. All rights reserved.

      ISBN: 978-1-9164629-3-9

      No part of this book may be used or reproduced in any manner whatsoever without written permission except in the case of brief quotations for the purposes of critical review.

      Published by Rising Tide Press

      Rising Tide Press Limited,

      71 – 75 Shelton Street,

      Covent Garden,

      London,

      WC2H 9JQ

      www.RisingTidePress.co.uk

      Requests to publish work from this book should be sent to: enquiries@RisingTidePress.co.uk

      Cover created by Sophie Lees Design

      sophie.lees-design@outlook.com

      Table of Contents

      Disclaimer

      Introduction

      PART I The Rational Basis for Income Investing

      My Journey: Better Late than Never!

      Early Education and Schooling

      First Employment and Adulthood

      Credit Crunch

      University and Academic Career

      The Pursuit of Wealth: A Moral Conundrum?

      The Highway to Freedom

      Morality and Greed

      The Spectre of Inflation

      Government and Pensions Won’t Save You

      Investing and Speculation: An Important Distinction

      The Power of Compounding: Building Cash Flow

      Developing an Ownership Mindset

      Be Clear on Assets and Liabilities

      Getting Started: Taking the Reins

      Stock Market Basics

      Finding a Broker

      PART II Stock Selection and Valuation Principles

      Dividends: The Cornerstone

      Payment History

      Yield

      Growth Rate

      Sustainability

      The Importance of Yield on Cost

      Market Valuation

      Price-Earnings Ratio

      Price-to-Book Ratio

      Price-Earnings Growth Ratio (PEG)

      Financial Health

      Use of Debt

      Profitability

      Free Cash Flow

      Management Effectiveness and Quality

      Insider Ownership

      Margin of Safety and Economic Moat

      PART III Putting Things into Practice

      Building a Portfolio from Scratch

      Diversification: The Only Free Lunch in Investing

      International Investing: It’s a Big World Out There

      Passive Investing Strategies: Taking a Back Seat

      A Word on Mutual Funds

      Mortgage or REIT?

      When to Sell

      Evaluating Performance and Success

      Case Study 1: Under Construction

      Case Study 2: As Good as Gold

      Closing Thoughts

      Reading List: Taking Things Further

      About the Publisher

      Disclaimer

      This book is intended as a starting point and foundational text to springboard the reader into making rational and considered investment decisions. I am not an accredited financial adviser or investment professional, and do not provide personalised investment advice. Any content presented here, such as predictions, opinions, commentaries, forecasts, stock picks or suggestions, expressed or implied herein, is included solely for the purposes of information, education or entertainment. It should not be regarded as investment advice under any circumstances. You are responsible for your own investment decisions and I will not be held liable for any actions you take as a consequence of reading this book. Conduct your own due diligence and consult a licensed financial professional before committing to any investment decision. All investments or trades carried out after reading this book are done so at your own risk.

      At the time of writing, all information was believed to be reliable, but its accuracy or completeness cannot be guaranteed. I will not be held responsible for any loss or damages, monetary or otherwise, resulting from investment decisions based on the aforementioned information, or anything else herein. Past results are not indicative of future performance. My objectives with this book are to educate and facilitate rational investment decisions, conducted at your own discretion.

      I hope you enjoy the book and wish you every success in your financial endeavours!

      Introduction

      For most of my life, I had no idea about the mechanisms of investing and believed that stock markets were the exclusive playgrounds of wealthy individuals and gargantuan institutions. These naive notions were shattered just a few short years ago - almost by accident, in fact - when I stumbled across some articles and books about building wealth and achieving financial success. Much of this information was difficult to comprehend at first and took a substantial amount of study to get to grips with. Indeed, a certain degree of mysticism shrouds the financial markets, not to mention confusing terminology. It was like learning a new language at times! Therefore, it’s not surprising that people find the markets so inaccessible that they leave everything to the so-called ‘professionals’. Since biting the bullet and purchasing my first stock four years ago, I’ve discovered a great deal and have had steady and consistent investment returns.

      In the beginning, I made some rather stupid mistakes, and will almost certainly make more on the journey towards my financial and career goals. My investing mindset is underpinned by critical reflection on these errors, accountability for them, and a constant desire for development and knowledge. I hope to pass on some of these concepts to you in this book. As you’ll see in these pages, participation in the stock market can be tremendously powerful and life-changing but is not without its risks. Although these investment risks need to be acknowledged and respected accordingly, I would suggest that the proposition of having to work well into your twilight years because you can’t afford to retire is perhaps the riskiest scenario of all. Sadly, this is the unfortunate reality for a growing number of people, a fact I regard as a complete travesty. This book is my small contribution to help address the ‘knowledge gap’ and make the process of investing a bit more accessible for the lay person.

      Unfortunately, the concepts I’m about to share with you are not taught in schools, at least none that my family or I have ever attended. Therein lies my major motivation (or is it aggravation?) for writing this book. A certain degree of righteous indignation fuels my words, but also a sense of great hope and optimism. For a large chunk of society, the stock market is merely a barometer of the nation’s economic and financial health. Most folks have no stake in its success or failure, and don’t know all that much about it. Worse still, many are ignorant of what the stock market represents or have disastrous and costly misconceptions about it. I intend to critique a number of these perspectives in the following pages, before delving into my core investing ideas.

      When I first started talking to work colleagues and family members about my newfound investing principles, it became apparent just how little many of them knew about the markets and how they can be used to generate considerable wealth over the long term. Many expressed feelings of concern and anxiety about the ‘risks’ involved and were scared that I would ‘lose all my money’. This is perfectly understandable, as the Great Recession of 2007 - 2009

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