The Idiot Millionaire by Derek Foster – Review and Giveaway
Derek Foster is back again with his fifth book – The Idiot Millionaire (link). This book follows a common theme about investing,with the focus on “idiot proof” stocks rather than exclusively dividend achiever type stocks. To Mr. Foster, idiot proof stocks are those that have global brand recognition and have a distinct competitive advantage.
For those of you who follow Derek Foster, you may know of the most recent “controversy” surrounding him where he sold all of his long term positions just before the market bottom in 2009. As he’s been asked about this many times over the past couple years, he dedicated a section in the book to explain what happened, and what he did after he sold. It turns out that he didn’t make out so bad (more on this in the next post).
Who is Derek Foster?
Derek Foster is known as Canada’s Youngest Retiree when he retired at the young age of 34. How did he do this? Through starting young and sticking with his investment plan of buying strong dividend paying stocks. He feels very strongly about his strategy and rightly so as he has achieved great success. His first book Stop Working: Here’s How You Can is a Canadian Best Seller.
Foster currently lives off and supports his family through dividend distributions, book sales, and a rental property (sold). Note that he retired before publishing his first book. You can read more about him in my book review of Stop Working: Here’s How You Can.
About the Book
As previously mentioned, this book focuses on stocks that have a long term competitive advantage by pointing out and explaining the authors favorite stocks in each sector. The chapter outline includes:
- Why you should invest in idiot proof stocks
- Bank Stocks and other Financial Companies
- Pipeline Stocks
- Tobacco Stocks
- Food and Drink Stocks
- Consumer Stocks
- Hygiene Stocks
- Oil Stocks
- Entertainment Stocks
- Transportation Stocks
- Business to Business Stocks
- Education Stocks
- Buying Bargain Stocks
- Where to Look for Idiot Proof Stocks
- Taxes and an update on the authors portfolio
While this book did give me some ideas on stocks to add to my watch list, Derek’s first book is still my favorite. Perhaps it’s because I’m a little more experienced now with investing and that I’ve read about a lot of the same concepts before. I would say this book is geared for someone just starting out in their investing journey and looking for ideas on which companies to look into.
Want a Free Copy?
The author is offering Million Dollar Journey readers the chance to win a free copy of the book. The details are below:
- New and Existing Money Tips Newsletter Subscribers will be drawn at random for a free book (you can subscribe here). (+1 entry)
- Leave a comment in this post by clicking here. (+1 entry)
- Only one comment entry per person (valid email addresses only please – privacy policy).
- Contest will end Sat 5pm EST Jan 29, 2011 and the winner, drawn randomly, will be contacted shortly after!
Here’s my comment to enter.
p.s. Authoring all of these books, it is becoming more evident that Derek has a different definition of “retirement” than most people.
I’m excited to see what this book is all about! Let’s hope this comment allows me to win!
Sounds interesting. Would definitely like to read it.
I would like to spread your idea and the message of the new book in Europe, especially in Germany.
I’m happy to read this book.
Greetings
Alexander
Wouldn’t mind reading this!
HAve a list of dividend stocks I want to invest in, but could use some more ideas.
I have always recommended derek’s first book to my 20 something clients. Not so much because of any specific strategies but more to show them it can be done. Too many books focus on 40 something age group and the younger crowd can’t relate.
Would definitely be interested in giving this book a stab!
I’d love to retire that early
Looks like an interesting read!
Good luck on the Giveaway for everyone.
Retiring at 34? Sounds like a dream! I wonder what he does to keep busy!
I’m looking forward in reading this, thank you for the review!
I would love reading this book so I could retire at 34 too!!!
I hope I win!
Opps. my comment was too short. Re-posting.
I think it’s too late for me to hit 34 but I’d certainly be happy with 43! :)
Ugh. Pick me, I guess. :-P
I recently “retired” at 36. It would be nice to compare notes.
Sounds like a neat book
Sounds like an interesting book
I read his Stop Working book… and would be interested in this one.
Sounds like a good read for me. I am 23 and just getting rolling in the investing world. It seems that he has a similar investing strategy to me but much more experienced and knowledgeable.
Will be definitely interested to read as I feel that I fall into the category of getting to understand investments..
I read his other books. Mostly good reads. Must be read with some skepticism but all have some good ideas that can definitely get you in the right direction/frame of mind for investing.
This would be a great start for me….appreciate what you do
Sounds like a great book!
that means I’ve only fot 4 years left to become the new yongest retiree.
Having a variety of different investments, I think it is time I start to look at dividend producing stocks for the long term.
Sounds like the booke for me!
Looks interesting.
i secretly feel like an idiot invester…would be great to see if i can retire by 64 not 34!
Should be an interesting books. Have read all of his others.
Read his other books. Would be interested in reading this one as well.
I had a chance to read his first book and loved it. I am pretty sure that this book is even better than one before.
Hurray Derek , Hurray Wasaga beach, Love to do cross country ski right there
:)
Interesting list of stocks, we have some but need to diversify a bit more so its a good starting point.
Should be interesting
Interesting book, sign me up
thanks
FrugalTrader,
Just two minor points…I had a rental property a few years ago, but don’t (so there is no rental income). Also, this is my fifth book, not fourth.
Cheers,
Derek Foster (author)
Love to read about different investment strategies and ideas. Would be a great read for the new year.
Enjoyed his first, curious to see what he has to say in this one.
I think giveaways like this are a great way to promote your site. Kudos.
I would like to read Derek’s latest book . Knowledge is Key !
It’s my birthday today and winning this book would be a nice present! I’m very interested in investing but still have a lot to learn.
It would be great to win this book and read about Derek’s ideas on where to invest.
I’m new to investing. This sounds like just the ticket to get me rolling!
Enjoyed his first, curious to see what he has to say in this one.
count me in for the giveaway
Looking forward to another great read by Derek. His books are very simple and easy to read, great for me!!
Glad you reviewed this! I just read it myself (from the library… I do read this blog, and am working towards increasing my net worth). It’s a great book, but it had a number of spelling and grammatical errors; just saying. I have read all of Derek’s books.
Sounds interesting; I’d love to read it.
FYI, your link to Foster’s first book “Stop Working…” is not functioning properly.
Cheers!