The Long and the Short of It

An 'educated laymans' guide to investment and finance

This book provides a guide to the complexities of modern finance, both the basics of investment and the sophisticated innovations of the modern financial system.

It explains how twice in the last decade — in the new economy bubble and the credit crunch — the follies of finance have threatened the stability of the world economy. It describes an environment that is complex and sophisticated, but greedy, cynical and self-interested.

This book explains how to put your finances in the only hands you can confidently trust — your own. You will learn everything you need to be your own investment manager; to recognize your investment options, and the institutions that will try to sell them to you; to understand the principles of sound investment and the research that supports these principles.

Since much of your portfolio will be in stocks and shares, this book describes why some companies succeed and others fail, and how to distinguish fact and fiction in what companies tell you.

John Kay explains many meanings people attach to the term risk; the tools professionals use to analyse risk and the different tools you need to manage risk for yourself. You will learn a practical investment strategy and how to implement it. This is the only book about finance and investment you need, and the one you must have.

John Kay is one of Britain’s leading economists. He has been a professor at London Business School and Oxford University and is a Fellow of St John’s College, Oxford and a Visiting Professor at the London School of Economics. He is a Fellow of the British Academy and the Royal Society of Edinburgh and a member of the Scottish Government’s Council of Economic Advisers.

He was founding chairman of a successful business and has been a director of several financial and investment companies. For more than twenty years he has been Investment Officer of Oxford’s wealthiest college. He combines academic credentials and practical experience with the ability to express complex ideas clearly and with dry humour, which he does through a weekly column in the Financial Times .

2009, Published by Eramus Press, ISBN 978 0 954809 324, 242pp, PB