The Lazy Investor: Start with $50...and no Investment Knowledge

Paperback | August 23, 2007

byDerek William Foster

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Format:PaperbackDimensions:182 pages, 8.52 × 5.6 × 0.47 inPublished:August 23, 2007Language:English

The following ISBNs are associated with this title:

ISBN - 10:097369601X

ISBN - 13:9780973696011

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Rated 4 out of 5 by from Good for Canadians starting out in investing The greatest praise I have of this book is for its clarity. The subject of finance is a murky one and can be confusing for those who are financially illiterate. Derek Foster does a great job of explaining the world of stock investing in layman's terms. If you go into reading this book with no knowledge of the subject matter you will come much more knowledgeable and confident. This book won't turn you into a sophisticated, master trader, but that isn't the author's intent. This book is written for the Canadian investor too which is a big plus. Most books on finance and investing refer to the American market so it's about time that a book has been written with Canadians in mind. That being said, if you are competent investor already, than this book is not for you. Many of the negative reviews here seem to be from self-proclaimed experts who criticise this book as being too simple. Well guess what? This book isn't for you, it's for people that are starting out. I do concede that the book's subtitle, "Start with $50..." is completely misleading. No one has ever attained wealth with an initial investment of only $50. Foster even admits within the book itself that your initial investment will require more than $50. All DIY finance books overpromise with unrealistic titles though. This is to get the attention of the passive shopper so they will pick the book up off its shelf and put it in their shopping bag. The titles of all self-books need to be taken with a grain of salt. My only real compaint about this book: I read the Revised Edition from 2012. This edition contains an extra chapter at the end which details all the changes that have occured in the financial world since the book was written in 2006. That means that some of the material learned throughout the book is rendered null and void when you read the final chapter. Foster should have gone back and rewritten the text that is no longer relevant instead of shoehorning the new info into an epilogue. This way we wouldn't have had to unlearn some of the info we aborbed in earlier chapters. I'm referring specifically to the tips he shares on Income Trusts. Ignore all the info on that subject as it no longer applies after the changes made by the federal government in 2011. Also, there is no info on Tax Free Savings Accounts (TFSAs) since they weren't created until 2008. Foster briefly mentions them in his addendum but there's no real info offered. I suspect that will be a future book from him.spect that will be a future book from him.
Date published: 2014-01-29
Rated 5 out of 5 by from Easy and Interesting Read I am currently embarking on my DRIPping investment strategy. I purchased a couple of shares on the exchange board the author recommended. With the current global economic downturn, I believe this is an excellent time to invest in the stock market AND find a way to minimize your expenses. Money tucked away in a mutual funds set up for retirement dropped signifigantly for many people yet you still have to pay management expenses (MER). Mr. Foster shows an excellent strategy to minimize investment fees and, if focusing on dividend income, ways to minimize taxes. I encourage every Canadian to read this book.
Date published: 2008-11-09
Rated 4 out of 5 by from I like this book It might be controversial whether DRIPing is going to sustain one to have an early retirement. Nevertheless, this book provides a good alternative for some simple long term investing for regular folks. The idea that impresses me most was not about how early the author got to early retirement, but his definition of retirement that was revealed in the book - not about having unlimited material possession or "n" million of money in the bank, but the humility and satisfaction of understanding what is enough. I like this book.
Date published: 2008-10-21
Rated 5 out of 5 by from Clever and Useful With all due respect to other reviewers, this book is a) a straight forward read and b) pretty darn accurate. Looking at the plan he lays out in this book -- using DRPs coupled with SPPs your investment quickly becomes sizable. Look at the major Canadian banks: BNS dividend .50/share/quarter that means at 100 shares ($4850.00 roughly) you will be receiving 1 additional share every quarter. Assuming that you continue to invest regularly (say about 375-400 dollars per month -- remember pay yourself first, let the bill collectors wait) you will receive 4 "free" shares in the second year (plus partial shares from the year before) 8 "free" shares the third etc... And that's not looking at splits, dividend increases, partial share reinvestment etc. At 2500 shares (his average recommendation in his first book) you would receive a quarterly income of $1250 dollars -- now multiply that by the number of companies in your portfolio (Say for example: BNS, CM .87/share/quarter, BMO .70/share/quarter, REI.UN .11/share/month, and NA .62/share/quarter) is roughly $6250 per quarter (three months) which is over $2000.00 a month. I say its definitely achievable -- My wife and I have already started, we have an 18 year plan. Its a long term plan, but that is his point in the book -- this isn't a get rich quick scheme its a retirement plan. And according to Canadian law its a retirement plan you can pass on to your children (Securities can be directly transferred at death). Now having said all that, I wouldn't stop with this plan -- I'm greedy -- but he also has a list of books for his readers in the back and I highly recommend reading them. Look into things like incorporating, rental properties etc... Very useful, all of it.
Date published: 2008-06-05
Rated 1 out of 5 by from Misleading C'mon RP. There is no way that a 2-3% div payout will become a 4-6% payout the following year unless the stock literally doubles. How is that realistic? The div payout will likely double after 8 to 10 years. If what you are saying is true, one could buy a few bank stocks and be a millionaire in about 10 years due to compounding. His numbers were nowhere near being realistic.
Date published: 2008-05-25
Rated 5 out of 5 by from If you want it done right... DO IT YOURSELF! I have read a lot of books on investing, and this is the one that I would recommend first to anybody. The concept is so simple. Forget day trading and get rich quick nonsense. Anyone who is serious about securing their financial future should consider the fundamentals that this book outlines. This is the strategy that I am going to follow.
Date published: 2008-05-14
Rated 5 out of 5 by from Awesome book - too bad a lot of people don't get it!!! I have to comment on the Review done by Andrew P as I'm sorry Andrew but you just don't get it! When he says that he get a 2 - 3% return on his investment, that only for the FIRST year! As long as the dividends keep going up, then say for example the next year it's looks like 4-5% return and a 6-8% the following year, etc.... Using the rule of 72 and the rising dividends, it won't be long before he has made all of his original investment back and seeing double digit (+10%) returns on the investment. So, yes he's numbers are correct. Also if he points out that dividend income is taxes a lot less so that he doesn't need as much as us working saps. So again, I believe you missed a very important point. Anyways, I believe it's an awesome book and a must read!
Date published: 2008-03-21
Rated 3 out of 5 by from Good reading but limited applicability (use with caution !) While reading this book, I was fascinated by author's talent to clearly articulate his investment strategies. Common sense language and pretty convincing reasoning make it an easy and enjoyable ride from the very first to the very last page. Being written for Canadians, the book's focus on Canadian markets' specifics further contributes to its attractiveness and usability. HOWEVER, after having done some further research, I came to conclusion that such strategies have rather limited applicability. For most companies (including those referenced in the book) with average dividends yield of 2-3% of their stock price, one has to have about $1.5 million in such investments to generate $50,000 a year in dividend payments that are necessary for an average family to survive if there's no other regular income. So, either the author is kind of lying when he says he has far less than $1M invested or doesn't tell the whole truth about other sources of his income like, for example, capital gains from regular stocks trading. So, in conclusion, my advise would be to use this book with caution and a fair portion of healthy skepticism. In any case, don't make mistake and "stop working" by solely relying on the author's strategies (unless, of course, you have $1M+ to invest, but in that case you would do well even without Derek's recommendations :-)).
Date published: 2008-02-23
Rated 5 out of 5 by from "unique" I am finally glad to see the Canadians writting books about Canada for other Canadians. For so long, We have been listening to the American way of life, but now we are making Canada our own. I found the Lazy Investor to be an interesting technique to invest money. I am presently practising this technique and have found it to be quite useful and rewarding. The best thing about this book, is that it is not a "Get Rich Quick book", where the authour suggests five ways for people to get rich just like him. This book is written by a common person in Canada, about his way of smart investing and not getting so emotionally chagred over the market's ups and downs. All New investors should read this book. He actually gives you step by step ways how to implement his plan, which I found very helpful.
Date published: 2008-01-19
Rated 4 out of 5 by from Great this book is really helpful!
Date published: 2007-10-06