Investing For Dummies

by Eric Tyson

Do you have a few investments that you would like to develop into a full investment plan? Would you like to know how to strengthen your portfolio? Perhaps you want to roll your 401(k) into a new plan? Whatever your agenda is, nowadays it's hard to find good advice on where to invest your money. Now you'll have the ultimate one-stop, no-nonsense guide to investing with Investing for Dummies, Fourth Edition! This updated bestseller provides fresh data and analysis on where to put your money and how to improve returns on IRAs and 401(k)s, as well as investing fundamentals like examining your investment options and considering risks and returns. You'll have all the tools you need to:


Investigate and purchase individual stocks Buy bonds and other lending investments Select the right mutual fund Invest in the best stock, bond, and money market funds Choose a worthy brokerage firm Know when to invest in real estate Start and run your own small business Gather a collection of reliable investment resources This handy reference is packed with tips and advice on how to conquer important investment obstacles and what to consider when selling an investment, as well as how to invest in a down market. With Investing for Dummies, Fourth Edition, you'll soon have the power to turbo-charge your investment and maximize your returns!

Genres: Finance, Nonfiction, Business, Money, Reference, Self Help, Economics

430 pages, Paperback

Published January 1, 2005

Reviews

[Elizabeth · Rating 4 out of 5]

Finish this on the flight back from Cancun. It takes some humility to read "for dummies" books but I actually learned a ton and felt that it provided a very comprehensive, easy-to-understand explanation of conservative investing principles. I learned about ETF's, mutual funds, stocks, bonds, real estate investing, small biz investing, and general principles such as diversification and risk tolerance. Tyson could have organized the book a bit better (sometimes this issue is exacerbated when reading on Kindle because you can't easily find old notes or chapters), but his writing style seems relatively unbiased and it is great to learn about all the different sources of bias in financial brokerage firms and media coverage. Highly recommend for any millennial seeking to take control of his or her finances.

[Akhilesh · Rating 4 out of 5]

This book goes into extreme detail about the different aspects of investing and assumes that the reader is starting from scratch which was ideal for me. The book is divided into sections including stocks, index/mutual funds, real estate, and property. I focused on the first two sections since that's what I'm interested in right now and the book did a good job of explaining the difference between the different kinds of funds in the market. I used this book as a Kickstarter to do more research on my own about funds online.

[Aaron Barnett · Rating 5 out of 5]

Really helped me understand basic personal finance. Soon after reading, I opened a Roth IRA. I also changed my investment strategy in my 401k, and I began investing in some of the funds that Eric suggests across all accounts. The book does a great job of simplifying information and making data-driven investment suggestions. I’d highly recommend it to anybody trying to get a better understand of how to schedule their investments.

[Jillian · Rating 4 out of 5]

I didn't finish this book, but it doesn't look like I'm going to. It's not a laugh a minute, but it does give a clear picture of investing in general, including some decent advice. I do wish there had been a section on Socially Responsible Investing, though, since that is mostly what I try to do.

[Kimberly Te · Rating 4 out of 5]

Boring but had to be done :/

[El · Rating 3 out of 5]

Overall, this is a good starting point for a "dummy" - anyone with little to no idea about the several ways in which people can invest money. If you are looking for advice or a reference book about a specific type of investment, you're better off sticking to a book that is specifically about real estate, small business, or whatever venture you're looking to get into as it would provide more depth than what Tyson is capable of covering under such a broad title.

The book covers several different types of investments, beginning with stocks. As someone with a new interest in investing, the content was mostly easy to digest and didn't suffer much from dryness. However, if you have no interest whatsoever in the topic and are only reading it because you feel a responsibility to do something with your money, you may struggle to get through it. Regardless, it's something you should power through anyway - your finances will be much better off for it.

I read an outdated edition from 2011, but there are still a lot of useful investing principles that still apply today. It's also US-centric, so if you're not from the US it's probably better to find an equivalent introductory book for your country.

Despite the general good advice, there are a couple of some eyebrow-raising aspects to this book. I noted a section midway through where Tyson strongly advocated for a particular investment service company that spanned across an entire page, which read like an advertisement rather than his other briefer recommendations. He also states that you absolutely "need" life insurance if you have dependents, which is questionable (perhaps this is good advice for US citizens, but certainly not all countries).

Overall it's a good start, especially if you're from America. Don't be like me and settle for an older copy: grab the most recent version, educate yourself about investing, and put your money to work!

[George Moffatt · Rating 5 out of 5]

Being an idiot I found this a very easy read to get to grips with the basics of investing & the various forms of putting your money to work for you

[Stephen Rose · Rating 1 out of 5]

I do not recommend this book for beginning investing for 3 reasons:
1. Sets a negative tone about cryptocurrencies it’s essentially anti them. l'd rather it just leave it out if we are only talking stocks and bonds.
2. Pro- federal reserve / central
banking- of which I am not in favor - rather than just explaining it. Staunchly defends Quantitative Easing.
3. Presents factually, historically incorrect information about the housing crisis in the 2000's. “The risky ones (mortgage bonds) that were in the news in the late 2000’s for defaulting, were so called subprime mortgages, which lacked federal agency backing.” I may not know investing, but I do know history. I’m surprised he could say this as it’s easy to google that the subprime mortgages were backed by the government.

[Brandon Kriplean · Rating 4 out of 5]

Some would say this is the only book I’ve read WORTH reading lol

[Steven · Rating 3 out of 5]

Watch out, Wall Street! Armed with "Investing For Dummies," I am prepared to bedazzle the world with my investing prowess. Send me to New York. I'll bedazzle them all, I say! Joking aside, I chose to read this book because I know almost nothing about investing. The "Dummies" moniker had me sold. Give me a financial book that assumes I have absolutely zero background knowledge. That is what I need.

Since I have no experience, I can't really tell you if "Investing for Dummies" is good advice. It does seem in keeping with other advice I have heard. Overall, I found the book to be accessible, well organized, and true to the promise of being for dummies.

My only complaint is that, like all investment advisors, the author does not provide any real idea what kind of risk is involved in the prospect. What percentage of investments fail? What are the odds my business will fail? Tyson treats risk in some hand-wavey ways. But I think there are some concrete details that can better crystallize just what someone is in for. For example, Tyson promises that, on average, the stock market pays you about 9 cents for every dollar you invest. That's baloney! The actual historical returns depend very, very much over what time period you average. The average return looks very different depending on whether I average over 1985-2007 or 1987-2009. A more useful statement would be to say that the stock market returns something between 5-11% or something like that.

[Berke Sahbazoglu · Rating 4 out of 5]

Read this book to learn some money saving tips and basic investing. Tyson covers many different methods of investing like bonds, real estate, stocks, money markets, etc. Some thing I was not expecting was the simple yet most effective investment possible: Investing in your health and mental/physical well being. Tyson says eating healthy, exercising, and avoiding unhealthy habits like smoking and alcohol consumption could go a long way in extending your life and substantially improving your financial future.

Another interesting piece of advice he gives: Always know what or who you are saving money for. He said many people aspire to be frugal but they accumulate wealthy which they tend not to use for hobbies and things they love. So if you save thousands of dollars every month be sure to allocate a portion of that to spend for music, films, NBA games, restaurant food, or any thing you take pleasure in.

I recommend this book especially for college kids and those who are interested in improving their financial future and overall life quality.

[Lauren G · Rating 3 out of 5]

This is a solid 3.5 stars. A good first read if you are starting at the beginning. I now know what direction I want to move in to invest my money and I learned some new things.

The tone is very conversational and easy to understand. I'd say the small business section at the back part is the least useful and most basic, and that really the discussion of mutual finds and stocks and investing make up the best portion of this book.

I still feel the need to do some further reading, but I feel like with a little online research just this book wouldn't be too bad if someone had some extra money to put away and had no idea what to do with it.

[Carlos Ramos · Rating 5 out of 5]

First book I read about Eryc Tyson, and I must say now I want to read other of his "For Dummies" books about finances.

A good book to serve as overview of the main classes of investing: stocks, real estate, and small business.

He does not dwelve much on the complexities of the financial stuff, like options and futures, or about other things like commodities and collectibles.

In short, he supplies some basic tips for you to start your path in any of the three most basic and kind of safe paths.

A good "For Dummies" book, that has given me a nice direction to follow for stock investments.

[Truls Ljungström · Rating 5 out of 5]

När jag skaffade privatekonomi-bundeln var jag rätt säker på att jag kunde allt, men att det var klokt att dubbelkolla. Nu är jag rätt glad över det. Denna bok innehåller inget som jag inte kände till, i huvudet, men den formulerade saker på ett sätt som gav mig lite fler samband. Framförallt kring optionshandel och teknisk analys (som boken är kritisk till). Jag rekommenderar den för de som vill se om sitt hus - eller som funderar på att skaffa ett större.

[Zach · Rating 3 out of 5]

This book is great if you are brand new to investing or new to the stock Market. It gives you all the basics in a clear to understand format. If you already know the basics I’m not sure this book will do much for you. I don’t think I learned very much and their were whole sections I just skimmed because they had to do with topics that don’t really apply to or interest me.

[Renee' Williams · Rating 3 out of 5]

Hard to understand.

[Warren Green · Rating 3 out of 5]

Super super dry. Was trapped on a train for hours. Informative though

[Jorge Rosas · Rating 3 out of 5]

A nice and easy to understand guide to the principles of investing, super useful if you live in the USA and great if you don’t.

[Roope Kanninen · Rating 4 out of 5]

Käytiin laajasti läpi monenlaiset sijoituskohteet. Huomioitavat veroasiat koskivat tietenkin vain Yhdysvaltoja, mutta oli kiinnostavaa lukea niistäkin miten poikkeavat Suomen käytännöistä.

[Glakhmed · Rating 5 out of 5]

Packed with great info on investing, presented in an easy to read and digest format.

[Sherry · Rating 4 out of 5]

I gave Investing for Dummies 4 out of 5 stars—not because it's flawless, but because it far exceeded my expectations. Whether you're new to investing or revisiting the basics, this book is a rare blend of accessibility, practical wisdom, and strategic thinking. It doesn’t just teach you how to invest—it teaches you how to think like an investor.

This book earns 4 out of 5 stars for exceeding expectations. As an introductory guide, it strikes an impressive balance between simplicity and depth. It doesn't offer the most cutting-edge investing techniques, but that's not its purpose. It aims to build a foundational mindset, and it does that exceptionally well.

Both beginners and experienced investors can benefit. For newcomers, the jargon-free language and structured approach make investing feel less intimidating. For seasoned readers (especially those with formal finance training), it offers a much-needed refresh—highlighting how personal investing diverges from corporate finance or academic theory.

Tyson guides readers through:
Investment goal setting and self-assessment
Risk tolerance and time horizon mapping
Evaluation of various asset classes (stocks, bonds, ETFs, real estate, small businesses)
Portfolio construction strategies
Tax implications and planning tactics

What sets this book apart is its emphasis on mindset, discipline, and long-term thinking over short-term trades or market timing.

Real Estate and Small Business: The Hidden Gems
I picked up the book for its unique inclusion of real estate and small business investing—areas underexplored in finance curricula. The real estate section offers frameworks (e.g., NOI calculations), and the discussion on REITs is especially relevant for investors in high-cost, low-yield cities. The small business section frames entrepreneurship as an investment—highlighting both its high return potential and significant risk.

Practical, Not Prescriptive
Tyson doesn't walk you through every investing scenario. Instead, he gives you the tools and filters to make informed decisions—kind of like teaching someone how to fish, rather than handing them a rod and a list of lakes.

Why not five stars? Some chapters are broad and could go deeper (e.g., on modern ETFs, global diversification). Those seeking actionable, tactical advice may refer to his "Mutual Fund for Dummies", a step-by-step portfolio construction guide.

This isn’t just a “for Dummies” book—it’s a mindset primer for the financially curious. Tyson’s “buy-and-hold” philosophy, rooted in fundamental analysis and low-cost indexing, is the quiet confidence many of us need to navigate an otherwise noisy investing world.

The Psychology of Money by Morgan Housel complements Tyson’s mindset-focused investing approach. For a more technical yet accessible perspective, Peter Lynch’s One Up on Wall Street is an excellent choice. And for readers still debating efficient market theory or leaning toward technical analysis, Robert Shiller’s Irrational Exuberance provides a compelling view of how short- to medium-term markets can diverge from fundamentals and follow momentum-driven patterns.

[Alim Adigozalov · Rating 4 out of 5]

It is a good book for anyone who feels unsure in the world of investing. The written language of it is really easy understandable, which is perfect for beginners. The book describe everything from the basics of stocks and bonds to how to plan for retirement. It's like a friendly guide that takes you to the financial world, showing you how to make smart investing choices with your budget. Furthermore, the thing I really like about it is how it uses real-life examples to explain things, making the information not only helpful but also relatable. If you would like to enhance your skills on savings and to learn more about investing, this book is a good financial companion in your journey.

[J · Rating 3 out of 5]

Good content and good advice. I read the 4th edition, and it needs updating and restructuring. I would delete the sections about entrepreneurship (and put that content in a different book), delete much of the real estate management content (and replace it with information about more accessible ways to invest in real estate such as REITs, etc), and I would DEFINITELY move the final few sections, where Tyson correctly warns against getting investing advice from the TV or radio, toward the front of the book.

[Natalie · Rating 3 out of 5]

I'm baffled by how people said this is easy to read 😭. It's certainly informative and gave me the basics for stocks, but the book repeated things throughout which caused the organization of it to be lost, not to mention how there's a lot of "as I discussed earlier" and "as I will discuss later". I was overwhelmed by the amount of lingo- for instance, I'm not sure I need to know the names of all bonds that exist in order to get started with investing. I'm trying a different investing book now, and as I educate myself my review on this book may change.

[Zack · Rating 4 out of 5]

Look man, in terms of places you can get advice on the basics of investing, this is kind of peak. It's nonosense, practical, informative, and simple. The trouble with so much investing literature is usally that it's treated as a get rich quick scheme for gamblers or promotion of the writer's brand. But this is just straight informatation from reliable sources, stated as simply as possible.

Based.

[Tracy · Rating 4 out of 5]

Good book, with a lot of good information. Overwhelming at times. This is a book that I'll need to go back and read a couple of times. I've gotten through the initial run-thru, but I would like to sit and go through it again, maybe slower, looking into the charts and attachments that Eric references.

[Myra · Rating 3 out of 5]

A solid foundational book on investing (including everything from stocks/bonds/mutual funds to real estate and small business). Like all Dummies books, covers a lot of ground but not very deeply for the most part.

[Carolyn Lee · Rating 5 out of 5]

A good investment advice book that provides a comprehensive concept of how to avoid and what to do. Some practices are not applicable to non-US citizens but still can be referred to for what these practices are for and amended for scenarios applied to where the readers are living now.

[Leon Baxter · Rating 3 out of 5]

I listened to this book. It's got some good ideas, places to start, but because it's outdated, it's important that people do their own research or read something more current and talk to a professional, but having this information is great in order to know the questions to ask.

[g clark · Rating 3 out of 5]

It advocated a to safe strategy for my tastes so it was unhelpful in what I needed it for. However it helped me create a strategy for my g.f.