The arrival in Hong Kong of online brokers such as Charles Schwab and TD Waterhouse gives value to a book which would have otherwise been irrelevant to most local investors. With the world's two biggest online brokers offering quick access to the United States stock markets, Israelsen's book provides handy historical data in easy-to-read fashion.
Israelsen claims to offer 'penny-wise strategies for investors on a budget'. As a teacher and a father of seven children, he stresses that he will never 'make millions'.
Investors should do their best with what they have, even if that means putting aside a tiny amount each month.
Central to Israelsen's argument is the theory of dollar-cost averaging. While this may sound a little more complicated than the average piggy-bank investor would care to know, his concise explanations may leave many wondering what they have been up to all these years.
Systematically putting aside a certain amount of money each month has long-term advantages, he says. Lump-sum investing runs the risk of falling prey to bad timing, while regular contributions mean that your money buys more shares or funds when the markets are weak. Those who use the dollar-cost averaging principle can actually benefit in a downturn.
Israelsen takes his crash course in investment basics a step further by explaining value-cost averaging. This requires investors to add to their regular instalments when prices are low. The concept is likened to picking up bargains during the sale season and is an extension of the fundamental truth of 'buying low and selling high'.