Lessons from the Lemonade Stand - an introduction to investing by James Berman


This book grew out of a perceived need — to explain investment topics in simple ways. There's too much confusion around investing. The talking heads toss around phrases like "credit spreads" and "equity dilution" — and out goes the viewer's attention. 

The investment world sounds complicated, but it can all be broken down into basic concepts. The most important is supply and demand, a fancy phrase for selling and buying — which is just another way to describe what goes on at lemonade stands across America on any summer day.

If you were a young entrepreneur, you probably had a lemonade stand or maybe a bake sale or whatnot. I had my first business with my friend Justin: we sold lemonade, iced tea, and homemade peanut butter in front of my apartment building. You get the idea.

I've only chosen the lemonade stand for its common touch. But that part's flexible, and you can plug in any other business.

In the true spirit of a primer, this book is introductory. It barely scratches the surface of most concepts but hopefully provides the tools to understand any concept. If it does what's intended, it will allow you to apply lemonade logic to your money. Buyer beware: This book is unlikely to make you rich in and of itself. If all else fails, you could go back to running a lemonade stand. You'd certainly have the best on your block! 

- James Berman