Investing Fundamentals
The entry point for working through Chapters 1 to 4 in order, from the foundations of investing to building a portfolio
This page is the entry point for Investing Fundamentals as a whole. It builds the foundation first, then moves to equities, mutual funds, and finally portfolios. It is written to be read in order, but if there is a specific question on your mind, start from that chapter.
What you'll learn
- Chapter 1 sorts out what investing involves, risk and return, and how the main products differ.
- Chapter 2 connects what a share is, how share prices move, and the basics of reading dividends.
- Chapter 3 sorts out how mutual funds work, how to choose one, and how to treat distributions.
- Chapter 4 moves beyond single products to combining them, the three axes of diversification, optimisation, and review.
Where each chapter starts
A suggested reading order
If you are unsure, use this order
| Order | Chapter | What you take away |
|---|---|---|
| 1 | Chapter 1 — Build the Foundation | Sort out what investing involves, risk and return, and how the main products differ |
| 2 | Chapter 2 — Understand Equities | Grasp what a share is, how share prices move, and the basics of reading dividends |
| 3 | Chapter 3 — Understand Mutual Funds | Learn how mutual funds work, how to choose one, and how to treat distributions |
| 4 | Chapter 4 — Build a Portfolio | Think through combining holdings, the three axes of diversification, optimisation, and review |
Start here in these cases
- If you do not know where to begin, Chapter 1 — Build the Foundation
- If you want to know what an individual share even is, Chapter 2 — Understand Equities
- If you are contributing through a tax-advantaged account, Chapter 3 — Understand Mutual Funds
- If you want to know how to combine and review holdings, Chapter 4 — Build a Portfolio
Here we weight the order of reasoning over product names
Which product to pick comes last. Once you have an order for thinking it through, later material such as factor models and optimisation is much less likely to knock your judgement off course.