Payback Time a great first-time investor tool

Author of New York Times’ bestselling book Rule #1 returns with a mutual-fund, Wall-Street bashing book on how to invest. Payback Time: Making big money is the best revenge! refutes the ‘waste of money’ that is the mutual fund, dispelling the rumour that it brings big returns as a long-term investment. According to the author’s research and personal experience, people who invest in mutual funds are putting their eggs into a basket that is pretty much hopeless.

According to the book, only 4% of fund managers consistently beat the S&P 500 index over a long-term period. Even worse than that is the calculation of fees wasting your nest egg away. According to the book as much as 60% of your investment on broker fees and management.

The book recommends what author Phil Town refers to as “stockpiling” – where an investor buys a company they understand and believe in with an MOS. These clients buy more when the price falls, a sort of buy low, sell high strategy.

While many investors knock the book for not being revolutionary, but rather talking about the obvious old-hat as if it’s new information, the book is an excellent how to guide for new investors. It provides instructions on how to find, value and select a company to invest in while also explaining the difference between price and value so that the market seems less intimidating for the new buyer.

Payback Time is available from WantItAll for the Best Price of R366.