Only few books would exactly convey what it is all about in the title itself. Just Keep Buying by Nick Maggiulli is one such book. Morgan Housel, author of The Psychology of Money, recommended this book in one of the podcast. Nick is a data obsessed person who runs a blog finance blog https://ofdollarsanddata.com where he crunches lot of numbers/data and writes in depth information about personal finance using his data analysis.
When it comes to investing, I myself did lot of research about Indian stock market and published detailed articles on different investing approach in my blog https://www.squareoffbots.com After reading many books, research papers from SSRN I ended up testing multiple models to check two scenarios.
- How much we would have made by now, if we had invested X amount in Nifty bees every month.
- How much we would have made by now, if we had invested X amount only on Months when Nifty gone down significantly
I realised that regularly investing X amount every month is the best strategy one can follow for long term wealth accumulation. I have shared the detailed article about the same in this link https://squareoff.in/is-it-a-good-idea-to-keep-accumulating-nifty-bees-on-every-market-crash-for-a-long-time/
In the Just Keep Buying, Nick has also concluded the same. We always think that we will make more money if we keep on saving cash every month and invest only during crash, but with 100 years of US historical data Nick found that investing a regular amount every month makes much higher returns in the long run.
There are 21 chapters in this book divided into two segments, Saving and Investing. He never explained with jargons, he tried to explain everything in laymen terms. So it’s much easier to understand even if you are a complete beginner in stock market.
Initially he explained about multiple factors like
- How much one should save?
- How to spend less, save more?
- Why Debt is not bad?
- Should you rent a property or buy it?
- When should one retire?
I really loved the chapter where he explained about retirement. Everyone thinks that once I make X amount of money, they will retire from their 9 to 5 job. But Nick explained in this book beautifully why one shouldn’t simply retire once they make enough money. You need to read the book to understand clearly about early retirement. If you are planning to retire early from your day job, definitely this book would help you a lot. In fact I wrote a detailed article about the retirement chapter alone in a separate blog post https://squareoff.in/how-much-money-do-i-need-to-retire-early/
In the second of half of the book, he did lot of data crunching with historical US stock market data and explained many important factors with respect to investing.
- Where should you Invest in?
- Why you shouldn’t buy Individual stocks?
- Why waiting for dip is not a ideal investing strategy
- When should you sell?
- Why Investing in index is lot better?
Best thing about this book is it is written in such a manner that you can directly jump to any chapter you want and start reading it. Its not a story book, so you don’t need to worry if you miss any chapters in between.
There are different types of individuals out there, some never started their investment journey, some would have already started but not sure if they are doing it correctly and there are some professionals who are already into investment field and they might have already read about many topics discussed in this book, these folks can directly pick any chapter they wish to read.
There are two or three chapters in this book which is specifically focused on US market and not applicable for other citizens. However, throughout the book Nick has burst many myths with respect to investing through his data analysis.
I would highly recommend this book if you are in the age of 18 to 45, specially if you are a working professional who is not sure about the house loan that you are about to take, who do not know exactly how to plan for your retirement, and do not know where to invest for long term, you should buy this book.