Five Smart Investing Resources

Since you're reading this, it's fair to assume you'd like to learn more about investing for the long term. While SmartMilMoney can provide the beginnings of a foundation for your investing future, my hope is that it also provides motivation to learn more. I've found each of the following five resources (two websites, two books, and a podcast) to be helpful - each in a different way - in elevating understanding of the factors that affect long-term investing.

Learning lingo:  Investopedia

As the name implies, Investopedia (http://www.investopedia.com/investing/) is the Wikipedia of investing. One can spend hours on the site learning financial terms and concepts. There's a bit of easy-to-spot marketing (its a for-profit site, after all), but the content more than makes up for it.

Investment research:  Morningstar

The Morningstar site (http://www.morningstar.com), a leader in investment research, is notable for its Morningstar Style Box.  The site describes it as

A nine-square grid that provides a graphical representation of the "investment style" of stocks and mutual funds. This easy-to-understand visual representation of stock and fund characteristics, the Morningstar Style Box allows for informed comparisons and portfolio construction based on actual holdings, as opposed to assumptions based on a fund's name or how it is marketed.

Much of Morningstar's content is free, while some of the more in-depth analysis lies beyond a pay wall. It's well organized, easy to compare, and appears to be quite free from bias of conflicts of interest. If you have a stock or fund you want to know more about, this site's a great place to start.  

Simplifying complexity: The Investment Answer

Written by a Wall Street veteran after he was diagnosed with terminal brain cancer, this 96-page book (http://www.theinvestmentanswerbook.com) breaks investing down into five decisions that every investor should make:

  1. The do-it-yourself decision
  2. The asset allocation decision
  3. The diversification decision
  4. The active vs. passive decision
  5. The rebalancing decision

Additionally, you'll recognize the themes discussed in the book from SmartMilMoney, because the book's powerful simplicity has strongly influenced our investment philosophy. They are:

-The global capitalist system generates a positive return on capital over time.

-Investing broadly and cheaply in global capital markets with asset class funds and index funds is a winning strategy over the long term because global capital market returns are available to everyone overall.

-With a proper time horizon and discipline, investors can capture global capital market returns which should beat most active investors (who try to beat the market) with less risk.

-The most effective and efficient way to invest in stocks and bonds is in public equity and debt markets.

-Stock picking and market timing are speculation, while asset allocation, broad diversification of portfolio risk, reducing costs and staying the course are investing.

It's a quick read, and serves as a proud legacy to its now-deceased author. 

DIY advice: Bogleheads Guide to Investing

John Bogle invented the 'index fund' and founded the Vanguard Group of Mutual Funds, a fund family whose popularity has exploded over the couple decades. His band of groupies - named 'Bogleheads' - have established an online community of self-directed investors who operationalize Bogle's vision of cost minimization and simplicity in investing. Their book helps the long-term investor through many of the decisions required for a successful DIY investment experience.  Their community approach borne from their roots as an online forum help newbies feel welcome to ask the most elementary of questions. They have an acknowledged bias toward the Vanguard family of mutual funds, but seem to have no financial relationship with the company beyond their personal investment accounts.  

Economic Intelligence: Marketplace

This final resource transcends long-term investing, focusing on larger business and economic issues. Produced by American Public Media and hosted by former naval officer Kai Ryssdal, the podcast is an entertaining way to further understanding of how economics works.  The show: 

Raises the economic intelligence of the country through the unorthodox story, the casual conversation and the unexpected angle on the news

It does so in an engaging way that can enhance your comprehension of how current events and emerging technologies can shape the economics of the world we live in. While this sounds quite dry, the shows producers find creative ways to link national or international issues to the effect each issue is likely to have on the listener's life that provide the "so what?".