The Good Investor's Manual

Reviewed by Diario de un Inversor · UpdatedJune 13, 2026

Our review

Juan Ramón Rallo's The Good Investor's Manual is a practical guide aimed at Spanish individual investors who want to understand how the financial system works and how to make informed asset allocation decisions. Rallo combines his background in liberal economics with a pedagogical approach that distinguishes the book from most Spanish-language investment manuals: it not only explains how to analyse stocks, bonds, and funds, but contextualises each asset class within economic cycle theory and its valuation implications. The author's ideological perspective — Austrian and free-market economics — permeates the macroeconomic analysis, which readers may find enriching or limiting depending on their own starting point. The most practical sections, covering financial statement analysis and portfolio construction, are clear and applicable. The book has the merit of treating readers as adults capable of engaging with complex concepts without oversimplification — something that is rare in Spanish financial education.

Key takeaways

• Understanding the economic cycle and monetary policy is essential for contextualising any fixed income or equity investment decision.
• Diversification across asset classes is not a trend but a rational response to structural uncertainty.
• Financial statement analysis must be complemented by knowledge of the sector and the macroeconomic environment.
• Actively managed funds rarely outperform their benchmark net of fees over the long term.

Fact

Juan Ramón Rallo holds a PhD in Economics from Universidad Rey Juan Carlos and is director of the Instituto Juan de Mariana, a liberal think tank based in Madrid.