Buy all-world stock ETFs, of course
This book blew me away. Not so much because of its advice (it recommends global diversification and a variation of the permanent portfolio) but because it made me change my mind about a couple of things.
How to Own the World starts off with two alarming claims:
- government pension schemes (with the exception of Norway and Australia) are all broke
- inflation is much higher than official government figures show
It then explains how individuals can deal with this through saving and investing.
The author recommends 'owning the world' by buying global indexes and 'owning inflation' by buying commodities, specifically gold and silver.
The book is full of careful explanations that back up each claim made by Craig. I found it very persuasive and it challenged my thinking on precious metals, technical analysis, and spread betting.
It has very nice sections on how to think about valuation of shares, bonds, property, and commodities.
There is a definitely UK bias to the book, but I would say 90% or so of the book is universal, and you can use the other 10% by substituting NISA for ISA and J401k for employer pension :)
How to Own the World is the first personal finance book I have read in a while that brought something new to the table, and I really recommend it for that reason. I'll be adding it to the Resources page and recommend it strongly.
Andrew Craig, the author, also has a website that seems to feature a lot of content from the book. I wasn't as impressed with the website as I was with How to Own the World.
Anyone else read this book? What's your view on precious metals?