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      Cover design: Lizzie Deller and Wiley

      Cover image: Paper Tear © Lizzie Deller

      Cover and internal images: The Old Exchange of Amsterdam

      © Job Adriaensz Berckheijde; Wall Street New York Stock Exchange

      © iStock.com/LUNAMARINA

      Disclaimer

      The material in this publication is of the nature of general comment only, and does not represent professional advice. It is not intended to provide specific guidance for particular circumstances and it should not be relied on as the basis for any decision to take action or not take action on any matter which it covers. Readers should obtain professional advice where appropriate, before making any such decision. To the maximum extent permitted by law, the author and publisher disclaim all responsibility and liability to any person, arising directly or indirectly from any person taking or not taking action based on the information in this publication.

      FOREWORD

      ‘Where do I find a good investment analyst to hire?' I asked a close friend.

      ‘Well, there's one guy I know. He's brilliant, but he's kind of … intense.'

      That man was Mike Kemp.

      The first time we met, I felt like Mike's eyes were burning into the back of my brain.

      To prepare for our casual chat he'd read my book cover to cover, and watched two seasons of my show, The Barefoot Investor, on CNBC, back to back.

      I'm also pretty sure he didn't blink for the entire 30 minutes we spoke.

      I count that meeting as one of the luckiest moments of my professional life.

      Mike and I have worked together daily for over three years now, and in that time I've learned that there's another trait that Mike has in equal measure to his intensity: integrity.

      In an industry full of wonks and shonks, Mike's the real deal.

      I've never met anyone who's more committed to rigorously uncovering the truth. And, as this book attests, if that means he has to go back to the dawn of capitalism to prove his point, so be it.

      When you begin dipping your toe into the wonderful world of investing, you're instantly bombarded with all sorts of opinions that are rolled up and presented as investment ‘laws'.

      It's almost impossible for the new investor to separate fact from fiction. Who could blame them? After all, as this book shows, the same investment delusions that were whispered by shoe-shine boys on Wall Street are polished up and presented as facts today on the internet and cable TV.

      So let's cut to the chase. If you're standing in the bookstore reading this, let me give you three reasons why you should pony up to the counter.

      First, Mike will show you just how hard it is to convincingly beat the market over a long period of time. However, he'll also give you the intellectual building blocks to start you off on your quest to do so.

      Second, this book is like a guided history through high finance – and it's surprisingly saucy: from the invention of the stock exchange, to Evangeline Adams (a spiritual mystic who was giving the holiest stock tips in the lead-up to the 1929 Crash), to the cheesy-but-true story of rat trading (seriously, a number of hedge funds got interested in the idea of rats delivering market-beating returns from trading stocks and currencies).

      And finally, it'll dramatically slim down your future reading list. That's because Uncommon Sense takes a knife to the most common investing illusions held dear.

      The end result is that you'll never look at charting, market timing or valuation in the same way again. In fact, I'm convinced that after you read this book you'll begin to see just how close CNBC is to the Comedy Channel.

      ABOUT THE AUTHOR