What do you think?
Rate this book
Uncommon Sense: Investment Wisdom Since the Stock Market's Dawn
Question everything – and become a better investor in the process Uncommon Sense takes readers on a four-century journey; from the dawn of public share ownership (in 1602) right up to today. But this is not simply a history book. It's a book for serious investors. Along the way it reveals the fascinating stories, the market characters and the important financial developments that have sculpted the thinking behind the value investor's craft. Blended throughout the narrative Kemp delivers an array of interesting anecdotes and rock solid logic regarding what works when investing in the stock market, what doesn't, and why.
Early in the 20th Century, Charles Dow remarked of Wall Street Operators that 'the more they actually know, the less confident they become.' Continuing in the tradition of that simple, elegant statement, this enlightening and entertaining book will have you thinking, acting and succeeding on your own in your investment endeavours.
Learn to question conventional wisdom at every turn and develop a healthy skepticism as you plan your own investment strategies Develop a rich understanding of the stock valuation process Discover the methods that have been used by successful investors from the dawn of the modern stock market (in 1602) right up to today Learn how to interact simply and successfully with markets that are vastly complex and largely inexplicable Uncommon Sense will have you questioning and doubting much that's stated about stock market investing, then developing your own winning strategy based on reason and understanding.
Early in the 20th Century, Charles Dow remarked of Wall Street Operators that 'the more they actually know, the less confident they become.' Continuing in the tradition of that simple, elegant statement, this enlightening and entertaining book will have you thinking, acting and succeeding on your own in your investment endeavours.
Learn to question conventional wisdom at every turn and develop a healthy skepticism as you plan your own investment strategies Develop a rich understanding of the stock valuation process Discover the methods that have been used by successful investors from the dawn of the modern stock market (in 1602) right up to today Learn how to interact simply and successfully with markets that are vastly complex and largely inexplicable Uncommon Sense will have you questioning and doubting much that's stated about stock market investing, then developing your own winning strategy based on reason and understanding.
327 pages, Kindle Edition
First published September 15, 2015
23 people are currently reading
212 people want to read
Ratings & Reviews
Friends & Following
Create a free account to discover what your friends think of this book!
Community Reviews
Displaying 1 - 11 of 11 reviews
May 30, 2022
I was introduced to Mike Kemp through his work with Scott Pape in the Barefoot Investor Newsletter. From that I already knew that Mike was a smart guy who could write, and that he had a process for valuing stocks that has worked well for him through time.
In this book he re-enforced that he has researched the area well and has put a lot of thought into it. However, as the book wore on the focus on economic history combined with pointing out the flaws in technical indicators and valuation models felt more like helping to destroy potential approaches rather than building a particular approach up. At the end of each part I had fresh hope that the next section would start being useful and actually showing what Mike believed in (rather than what he stood asgainst). This finally came part way through the last chapter... and was anti-climactic.
Unless you love economic history just read the chapter summaries, the final chapter and the appendices (the 2 appendiceshad good content)... or take another approach - find a book about Buffet, you'll probably take more usable thoughts away from it.
In this book he re-enforced that he has researched the area well and has put a lot of thought into it. However, as the book wore on the focus on economic history combined with pointing out the flaws in technical indicators and valuation models felt more like helping to destroy potential approaches rather than building a particular approach up. At the end of each part I had fresh hope that the next section would start being useful and actually showing what Mike believed in (rather than what he stood asgainst). This finally came part way through the last chapter... and was anti-climactic.
Unless you love economic history just read the chapter summaries, the final chapter and the appendices (the 2 appendiceshad good content)... or take another approach - find a book about Buffet, you'll probably take more usable thoughts away from it.
November 19, 2017
UNLIKE MOST MARKETS THE SUPPLY OF STOCKS DOESNT CHANGE MUCH SO ITS REALLY THE DEMAND FOR STOCKS THAT MOVES PRICES. IF DEMAND FALLS YOU CANT REDUCE SUPPLY MUCH TO COMPENSATE SO THERE ARE LARGE SWINGS IN PRICES.
Being contrarian doesnt mean always running against the crowd, it means questioning the actions of the majority.
I havent met a good investor who wasnt driven by the need to learn and to keep learning.
John Keynes managed the endowment of Kings College at Cambridge University. His part of the portfolio beat the market by 8% pa from 1921-46. Used a bottom-up process after underperforming for 4 years with top down.
The most important inputs are insightful subjective judgements regarding a company's future business prospects.
Humans behave inappropriately when interacting with the financial markets because their instincts were shaped in an environment of physical risk, not financial risk. Markets are a very recent phenomenon (400 years).
Being contrarian doesnt mean always running against the crowd, it means questioning the actions of the majority.
I havent met a good investor who wasnt driven by the need to learn and to keep learning.
John Keynes managed the endowment of Kings College at Cambridge University. His part of the portfolio beat the market by 8% pa from 1921-46. Used a bottom-up process after underperforming for 4 years with top down.
The most important inputs are insightful subjective judgements regarding a company's future business prospects.
Humans behave inappropriately when interacting with the financial markets because their instincts were shaped in an environment of physical risk, not financial risk. Markets are a very recent phenomenon (400 years).
March 21, 2017
An enlightening read. In this book, Mike Kemp will show you why Warren Buffett said that the only job of economic forecasters is to make fortune tellers look good. When buying individual stocks, focus on the micro because the macro is pretty much unpredictable. Carefully analysing the micro aspects of a company and buying with a margin of safety will ensure that your downside is protected in the event of short term macro meltdowns. A must read for those who follow the Value Investing philosophy.
January 2, 2022
An excellent book for the layperson or beginning investor with an emphasis on value investing a la Warren Buffett. Relevant internationally but delightful that there is some Australian context in the book. It did not give me any definitive answers (perhaps there aren't any) but certainly helped me to reflect on the relative limitations of various metrics investors use.
October 8, 2022
The book is written by one who studied science so sure there is some logic rather than just a hot air. The point that the stock market is unpredictable and future prices can't be predicted is emphasized in every chapter. Though it's overemphasized, I believe it's the most important rule to remember and I fully agree with it. There are lots of historical stories that sometimes get boring.
June 23, 2017
I love the historical aspects which are drawn into this book. Great read if you like investing and financial history.
June 18, 2019
About half this book is really engaging and interesting. The rest is rather more analytical and dry. Mike does a good job at engaging the reader in topics that are usually dull to read.
Read
December 1, 2020Definitely worth the read, I learnt a lot and it was easy to read through, it broaden my perspective about investing in general for sure.
November 28, 2023
Good info, but I feel like I've read this book before. Felt a bit flat.
November 6, 2016
Uncommon Sense is an uncommon book written by an uncommonly successful investor. One that has beaten the (Australian) market over the last three decades.
Unlike many finance authors, Michael Kemp promises you no market-beating formulas or “time-tested” trading algorithms. The book will teach you two important lessons to become a successful investor: The value of a business, and the mentality of the market.
The first part of book took you through the 400-plus-year history of the share market to answer some of the most controversial questions in the finance community: Does market prediction work? Trader or investor? Buffett of Livermore? Is computer algorithm the answer? Is the market efficient? How about Beta, EMH, or the “Efficient Frontier”? With a good mix of statistics, quotes, stories and humours, the author presented logical and convincing answers to these questions. Those who are keen on financial history will find this part immensely informative and entertaining.
In the later parts of the book, the author evaluated a range of metrics and techniques used in the stock screening and valuation process of many investment greats including Warren Buffett, Benjamin Graham, J.P. Morgan, and John Maynard Keynes. Although these processes are not discussed in-depth, they help construct a solid logical framework for your stock valuation process.
I thoroughly enjoy this informative book. It is well-referenced, well-researched and is backed up with decades of investment experience. I will however only recommend this book to those who already have general knowledge of finance/accounting and the stock market.
Unlike many finance authors, Michael Kemp promises you no market-beating formulas or “time-tested” trading algorithms. The book will teach you two important lessons to become a successful investor: The value of a business, and the mentality of the market.
The first part of book took you through the 400-plus-year history of the share market to answer some of the most controversial questions in the finance community: Does market prediction work? Trader or investor? Buffett of Livermore? Is computer algorithm the answer? Is the market efficient? How about Beta, EMH, or the “Efficient Frontier”? With a good mix of statistics, quotes, stories and humours, the author presented logical and convincing answers to these questions. Those who are keen on financial history will find this part immensely informative and entertaining.
In the later parts of the book, the author evaluated a range of metrics and techniques used in the stock screening and valuation process of many investment greats including Warren Buffett, Benjamin Graham, J.P. Morgan, and John Maynard Keynes. Although these processes are not discussed in-depth, they help construct a solid logical framework for your stock valuation process.
I thoroughly enjoy this informative book. It is well-referenced, well-researched and is backed up with decades of investment experience. I will however only recommend this book to those who already have general knowledge of finance/accounting and the stock market.
December 22, 2015
An interesting historical journey which is well written and referenced, but fails to deliver the potential market street smarts ones suspects the writer has in abundance.
Displaying 1 - 11 of 11 reviews