Free Capital
How 12 private investors made millions in the stock market

Preface

What this book covers

This book profiles 12 private investors. All of them have accumulated £1m or more – in most cases considerably more – mainly from stock market investment. Six of them have accumulated £1m or more in a tax-free Investment Savings Account (ISA), which is arithmetically impossible without exceptional investment returns.

The profiles cover the investors’ backgrounds and how they first became interested in the stock market; how the interest progressed to the point where they gave up their day job; and how they spend their days now. They describe each subject’s current investment approach, and reflect on lessons learnt from life as a full-time private investor.

Although a careful reading will yield many investment hints, this is not a how-to guide. The book aims to provoke reflection and provide ideas and inspiration, rather than the snake oil of simple prescriptions.

Who this book is for

Readers who may enjoy this book include:

• sophisticated private investors who want to compare their own approaches and experiences with others
• less experienced private investors who want to read about role models
• any reader of magazines like Investors Chronicle or Shares
• anyone who is curious about how stock market fortunes are made
• anyone who dreams of freedom and wealth!

Whilst the insights and reflections are at a level which should appeal to experienced investors, this is not a technical book. If a particular concept mentioned by any of the investors is obscure it can generally be skipped without impairing your enjoyment of the rest of the book.

How to use this book

The book consists of an introduction and conclusion surrounding 12 personal stories, which do not need to be read sequentially; the book can be dipped into at will.

As well as noting the investment hints and insights, readers may like to relate each profile to their own personality and experience. How well does the subject’s approach match with your own temperament? Do you already possess skills which would help in applying the approach?

For example, someone who needs activity and quick feedback to sustain their interest is likely to be a poor fit with the long-term strategic approach of Luke, which involves only a handful of trades every year. Someone who dislikes frenetic activity is likely to be a poor fit with the day-trading style of Khalid. Introverts who prefer to spend most of their time just reading and thinking may feel drawn to the styles of Bill or Sushil. Outgoing personalities who prefer to absorb information through one-to-one conversations may identify more with John Lee or Eric.

Free capital?

Free capital – a pot of money surplus to immediate living expenses – is the raw material with which the investors work. Free capital can also be thought of as their psychological habitat, free from the restrictions of conventional working life as an employee. Free capital also describes the footloose nature of their funds, which can be which can be quickly redirected towards any type of investment anywhere in the world, without the mandate constraints which institutional investors often face.

Read the first chapter here.

Or buy from Harriman House or Amazon.