Book Review: The Little Book of Robo Investing -How to make money while you sleep
Alexandria, VA – Review: The Little Book of Robo Investing –How to make money while you sleep
Publisher: John Wiley and Sons
Authors: Qian Liu and Elizabeth MacBride
Reviewed by: Ralph Peluso, Literary Editor
Zebra Rating–5 Stripes
As I was reading The Little Book of Robo Investing (Robo Investing), I thought back to the earliest times of my career in finance. I worked at a Wall Street firm. I imagined I was going to invest and build a whopping nest egg. Once I built up the courage to approach one of the top stogey financial managers, I asked him, “So, do you have any good tips for a novice investor like me?”
The response was not as expected. “Figure out how much money you can afford to lose. Then burn it. It will be less painful.” There were clear and unfiltered messages. You had to be wealthy to invest. Invest with the experts. And if you are a member of the “club,” be prepared to pay for the best “less than certain advice.” I do not know if it was a scare tactic, good advice, or a blunt reminder that I was not yet a member of that club.
After reading Robo Investing, I realized that I wish I knew then what I know now. Of course, times and technology changed the ground rules of investing. Robo Investing accomplishes one very important thing for those mulling the investment decision. Elizabeth MacBride and Qian Liu successfully eliminate the fear of investing. They achieve this using poignant discussions to refute 18 troublesome misconceptions.
Written for the average person, those of us who are not experts in financial strategies or market globalization, Robo Investing explains effective investment tactics that enable the average person to invest confidently. In a recent interview, MacBride explained the motivation for writing Robo Investing. “Like many people, I’ve had different chapters in my career. In a previous chapter, I was on the founding team of Wealthfront, one of the first online financial advisors. I did a ton of work translating high-quality investing into good, approachable language for people. I learned a lot myself, learning that enabled me to pay the bills as a single mom in expensive NOVA. So when Wiley, the publisher of my previous book (The New Builders), asked me about writing a book in their prestigious Little Book series, I couldn’t say no. I love helping people feel more secure financially, so they can focus on more important things.”
MacBride and Liu did a masterful job in summarizing the basics of investing, such as the importance of goal setting, understanding your limitations, balancing monthly needs with long-term strategy, understanding your tax (minimization) strategy, and, of course, risk mitigation. To name just a few.
Beyond the basics, readers will find tried and tested golden rules. Like investing is a long game. Save and invest regularly. Make sure your portfolio is diverse. Avoid trading individual stocks. If that’s your desire, here’s my personal conclusion: Take your money to a casino and play roulette.
As for investment advice, cheap is good. But remember, you get what you pay for. Be suspicious of all free advice. Avoid any emotional decisions about money. Make each decision clinically mathematical.
Elizabeth MacBride is an award-winning journalist, author, and expert in finance, investing, and technology. Elizabeth crafted the language to launch the robo investment movement. She is an advocate for a fair, accessible financial system and policies that support women’s economic power. She has written or edited for Quartz, Forbes Magazine, Atlantic, and many others. Her journalism works are available in many languages, including Arabic, Turkish, and Armenian.
Elizabeth founded New Builders Dispatch, a web publication covering innovation and finance beyond Silicon Valley, launched in February 2019. With venture capitalist Seth Levine, she co-authored a book, The New Builders. Steve Case, founder of AOL, called it a real game changer. Elizabeth is working on a book about the future of capitalism with Seth Levine. The targeted release is October 2025. She is a self-professed military brat and single mom of two. As for hobbies—history, especially Alexandria history!
Qian Liu is an executive in the fintech industry, serving as the chief data officer at Guideline and a leader in providing low-cost and easy-to-use retirement planning tools for small businesses. She has held executive leadership positions at GoFundMe, the biggest social fundraising platform, and Wealthfront. Qian holds a PhD and MS in computer science from the University of Pennsylvania and a BS in computer science from Tsinghua University in China.
An old phrase holds that good things come in small packages, and Robo Investing is well-written, concise, and to the point. Not only did the authors create a common-sense roadmap, but they also ease novice investors’ angst by dispelling many misconceptions. Beginning with investing is no longer limited only to rich white males! Sleep easy and make money. This little book is a must-read for average investors. Zebra rating: 5 Stripes.
