The Capitalist Code, by Ben Stein

Because of his memorable role in Ferris Bueller's Day Off, Ben Stein is "the most well-known teacher of economics in the world." Many who know him only as an actor don't know that Stein is actually an economist and lawyer by education and training, or that he has authored or co-authored a shelf full of books.  In his latest, The Capitalist Code: It Can Save Your Life and Make You Very Rich, Stein covers some basic truths about investing and the economy, hoping to inspire young people to take the long view and prepare for their future.

Stein's advice is solid, and his good humor is unflappable.  I love how positive he is.  He starts out appealing indirectly to the social justice warrior, antifa, occupy young people, or anyone else who disparages capitalism.  The reality is that capitalism allows all of us, young and old, to be owners of businesses and take advantage of the stock market.  "The real story is that it's raining money . . . from corporate earnings, and if you don't put out your bucket, you are making a mistake."

Of course he advocates getting started early: "From the earliest possible age you can do so, buy and hold common stocks in a large variety of public corporations in the United States of America and hold on to them until you retire and need the income they provide by selling them."  The simplest, most efficient way to invest?  Index funds.  Compared to owning a business directly, or investing in real estate, index fund investing avoids the hassles, the overhead, the taxes, the liabilities, the payrolls, pretty much all the negatives of business ownership or landlording. 

Stein is a big advocate of doing what you love, but is frank about the need to have money.  When you're sick, have unexpected expenses, need income for retirement, one person you can depend on is the younger you who had the discipline and foresight to invest in stocks, a practice that can, in fact, save your life and make you very rich.  Sound advice, indeed.


Thanks to NetGalley and the publisher for the complimentary electronic review copy!