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moneysense.ca, 30/04/05
Book Review: Stop Working
Current issue:
I finally managed to borrow the book, Stop Working: Here’s How You Can!, from our local public library. It is self-published by Derek Foster, who retired at the ripe old age of 34 and promises to teach how anyone can do it.
The book reveals that Derek was able to retire early by saving regularly and diligently, and investing the proceeds in the stock market. Most of the book deals with his investment style, which he calls “Show me the money!” investing.
The author’s preferred investment vehicles are Canadian financials (banks, insurance, mutual funds), blue-chip American multi-national corporations, REITs and income trusts (power, pipeline and energy). I think the author’s strategy of investing in companies with a long history of dividend increases and his view of stocks as an investment in future cash flows are the secrets to his success.
There are no new “secrets to success” in the book (which is a good thing). I would definitely recommend the book to anyone who is just starting to invest in the market.
moneysense.ca, 30/04/05
I put the book on hold at my library on line and I am number 57 on the list! Wow a popular book!
c8j
I put in a request as soon as I read a story in The Toronto Star. Now, I wish the library would order Jeremey Siegel’s The Future for Investors. Looks like I might have to buy it from the bookstore!
I bought this book a few months ago after reading about Derek in Money Sense magazine. He neglects the fact that he made an initial big gamble on Philip Morris, using borrowed money as well, and was able to build his grubstake from which he was able to then pad out his portfolio and supply his stream of income. It wasn’t solely from the $200 he socked away every month. He also calculates his income using government handouts like the GST rebate and CTC, which may seem a little dubious to those of us paying the taxes. Still the idea and theory seem sound. Though not written well (and his poetry is lousy), I still found it inspirational to a degree and motivating.
Dave: I agree with you and I made the point is a post when I first heard about Derek’s gamble in MO. Still, I have to concede that Derek is a very good investor, so I question whether his ideas are applicable to everyone.
I have read both of Derek’s books but I seem to have missed
a small part of the “drip plan.” I am 50 and I don’t have a lot of time left to get his dollars, but I thought I could maybe get a few bucks saved up. The question I have is; how long do you have to commit to the drip? Are you locked up for years, or can decide after a while you would like to just take the money you are earning on dividends and maybe stop buying shares? I’m not to sure how this part works. If you could answer this it would be appreciated much.
Thankyou.
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