Stocks for the Long Run

by Jeremy Siegel

The fifth edition of Jeremy Siegel’s Stocks for the Long Run, features great updates written in light of recent economic events, i.e. important stuff that happened long after the publication of this book. That is why after 20 years, it remains required reading for stock investors of all ilks, and its value continues to grow through the years. With Mr. Siegel’s penchant for being a scholar and purveyor of insight and current knowledge, he expertly extends his previous work to cover the real estate implosion, the 2008 depression, the post-depression recovery, and the Fed’s tight money policy and quantitative easing. Everything that the press and TV financial gurus have worked so hard to obfuscate over the last six years suddenly becomes lucid and, if not sensible, at least explainable.

Of course, the majority of the book is the original classic, where Mr. Siegel displays considerable acumen and gobs of statistics and applies them to markets and investments. Although this is my first time reading this book, I’ve had some exposure over the years to Mr. Siegel’s writing in economic magazines and newspapers. He is always one of the most lucid financial pundits around, a skill that was obviously honed in the writing (and rewriting) of this book over the last two decades. He uses clear examples, easy to understand graphs and tables, and an overall “no nonsense” tone that keeps the book light but “sturdy”. And instead of telling potential investors what they should do, he tells you what to expect when it comes to markets, individual stocks, and particular sectors, how to recognize what they are doing, and what you might want to consider doing to take advantage of that. If none of that suits you, all you have to do is skip to the next chapter, where he will give you different insight into a different investment aspect. Mr. Siegel covers everything stocks, so someone looking for detailed information can read individual sections to their taste, while someone looking for a thorough overview can just go through the book, cover to cover.

This is one of the best books ever written on investing in stocks, a book that other pros, authors, and analysts keep on their shelf for a ready reference. If you’re serious about investing in stocks, you need to keep a copy of this five dollar-sign book on your shelf as well.