"Just Keep Buying" by Nick Maggiulli

Review by Borodutch

"Just Keep Buying" is one of the best wealth-building books I've read in a long time. The author's new perspective on investment somewhat goes against mainstream advice. Nick doesn't simply claim that the usual "don't buy $5 lattes" advice is bogus but presents the readers with relevant data.

The book could as well be a short article — or even simply the book's name would suffice. However, the presented ideas are so counter-intuitive and "too good to be true" that the author had to go into depth, offering actual market data and simulations to justify the case.

The book's main idea is that one must keep buying into financial markets gradually but constantly. There are great arguments against it (e.g. invest a lump sum right away instead of gradually increasing the deposit), but the author virtuously clashes them with actual data.

The proper way to increase wealth isn't saving more — but earning more and investing the extra income. Nick explains a few crucial market mechanisms (e.g. the difference between bonds and stocks and rebalancing a portfolio) in layperson's terms which is why I'm happy to recommend the book to virtually anyone.

After you have disposable income, make sure to enter the market — and keep adding to the deposit no matter the market conditions. In the end, history shows that people following this strategy earn more. Fortunately, here in Canada, we have TFSA accounts where capital gains or dividends aren't taxed. So my goal for the next few years? Max out TFSA from the disposable income I earn monthly.

Also, don't bother with individual stocks unless you're gambling — and gambling is never investing. Buying into index funds and bonds constantly is the easiest and, at the same time, the best strategy to "win" on the market.