Does finance jargon seem like a foreign language? Is investing meant for “other people”? After reading Leonardo’s new book, you might change your mind.
There is no getting around it, investing and finance language can be complicated. Yet, writing a book explaining it sounds nearly impossible! Nevertheless, a fellow Babson classmate of mine and an exchange student from Bocconi University, which ranks 3rd in Europe for Business and Management, has just written a book titled All You Need to Know About Investing Short and Simple. His goal? To help everyone understand investing or, as Leonard refers to it, the “planet” of the confusing and complex.
First off, tell us a little bit about yourself, the author!
Hi Ursula! I was raised in Milan where I studied Finance at Bocconi University. During my last semester, I exchanged at Babson College in the States, now I live in Dublin where I work for Credit Agricole.
What was the inspiration behind writing a book about investing?
Well, I feel the financial world is perceived like another planet from those that are not on it, a planet of suited professionals speaking another language. But if you look closely at this planet, it is not as complex as it seems, at all. I thought that by simplifying the language, I could create a bridge between the real world and the financial world, helping many that might want (or need for investing purposes) to know more about it. That’s why I decided to write this book.
What was the biggest challenge you faced in writing a book aiming to simplify the complex language of finance?
Avoiding the use of sectorial but more precise terms, preferring more common words in order to be understood by more people. Simplicity requires common terms.
What are the core issues people find most confusing about investments and investing?
It links to the previous question, sectorial terms. These terms are a way for financial professionals to express precise ideas, to communicate more efficiently and rapidly among themselves, but sometimes these words are too exaggerated, scaring those that are outside. But again, if you look closer, the ideas under these words are actually easy to understand.
When the market does take a turn, as it had a few months ago, what is your investing perspective and advice?
For long term investors like me, market downturns are a good thing, we actually wait for them to buy. But the last turn was not enough, prices on the stock market are still too high because of ow-interest rates and because of pushing up forces coming from index investing.
What is your view on increasing global debt?
This is a great question. We are at the end of a macro debt cycle, we should see big changes from this point of view over the next years, especially from Central Banks, they have to address this issue.
What advice would you give to young adults to ensure they will have a bright financial future?
Do not think short term, unless you are an insider trader (just kidding, insider trading is not legal). Think long term instead, for three reasons: compounded interest rate effect, inflation and transaction fees cost.
Where you can pick up a copy of Leondardo’s book
The above references an opinion and is for information purposes only. It is not intended to be investment advice. Seek a duly licensed professional for investment advice.
Ursula D. 