Trade Your Way to Wealth Earn Big Profits with No Risk Low Risk and Measured Risk Strategies Wiley Trading
April 29, 2009 by Low Risk Stocks · Leave a Comment
Successful trader and advisor Bill Kraft shows how to trade the financial markets in a way that limits risk and provides the potential for big profits. Kraft, who left a successful law practice to become an independent trader, explains his own educational process and how he arrived at a trading approach that primarily uses options to generate consistent income, limit risk, and participate in big market moves. In simple and down-to-earth language, Kraft explains a variety of strategies including buying and selling options; covered call writing; collars; using closed end mutual funds for income; debit spreads, volatility-based straddles; ratio backspreads; condors; and calendar spreads. Kraft emphasizes that traders need to first develop a sound and reasonable business plan
The Smart Investors Money Machine Methods and Strategies to Create Regular Income Wiley Trading
April 29, 2009 by Low Risk Stocks · Leave a Comment
The Smart Investors Money Machine Methods and Strategies to Create Regular Income Wiley Trading
Practical trading strategies that any investor can use to achieve consistent long-term returns
Bill Kraft shows readers at all stages of life how to generate multiple income streams through a variety of investment strategies. Rather than look at trading as a means to make a big score, Kraft advocates strategies that provide regular income streams. In easy-to-understand language, he discusses how strategies involving covered calls, LEAPS, REITs, closed-end funds, options spreads, selling naked puts, bonds, annuities, master limited partnerships, and even reverse mortgages can be utilized to consistently generate cash flow. He includes strategies that limit risk, are easy to implement, and are relatively stress free. Throughout the book, Kraft intersperses personal stories about his own experiences with various proven, moneymaking investment strategies.
Bill Kraft (Conifer, CO) practiced law for more than 30 years before embarking on a second career as a trader. He is also the author of Trade Your Way to Wealth (978-0-470-12979-1).
Beyond the Random Walk A Guide to Stock Market Anomalies and Low Risk Investing Financial Management Association Survey and Synthesis Series
April 29, 2009 by Low Risk Stocks · Leave a Comment
“Beyond the Random Walk is the definitive work on how stocks can be persistently mis-priced, lucidly and comprehensively cataloging market inefficiencies. It offers investors sensible strategies to exploit valuable investment opportunities and is a critical reference for researchers.” –Lawrence A. Cunningham, Boston College, author of The Essays of Warren Buffett: Lessons for Corporate America
“Vijay Singal’s interesting book provides an overall treatment of the return anomalies that have gripped the attention of academics and investors alike. It is a good source for those who want to understand stock market anomalies, and a useful guide for those who want to trade on them. As always, those seeking to beat the market would do well to remind themselves about the perils of overconfidence, and the attendant risks that trading on sentiment entails.”–Hersh Shefrin, Santa Clara University, author of Beyond Greed and Fear: Understanding Behavioral Finance and the Psychology of Investing
“We can thank Vijay Singal for categorizing the major stock market inefficiencies, and for telling us how to make money from them.”–Roger G. Ibbotson, Yale School of Management, and Chairman, Ibbotson Associates
“Singal provides an easy-to-read introduction to the pricing anomalies discovered by academics and exploited by traders. Understanding these anomalies will help you identify the systematic mistakes traders make and how you might profit from them.”–Larry Harris, Fred V. Keenan Chair in Finance, Marshall School of Business at USC, author of Trading and Exchanges: Market Microstructure for Practitioners
“Understanding how the markets work and how to exploit them for profit is what makes Wall Street tick. Successful investing is based on extracting small low risk profits; this is what separates good managers from great ones. By explaining how to look for, spot and take advantage of anomalies Singal is about to create a whole new class of great managers. It is clear that his research, experience, and expertise are something all investors should take advantage of as they try to navigate the randomness and not so randomness that is the market.” –Daniel A. Strachman, author of Essential Stock Picking Strategies and Editor of The Strachman Report
“This is a comprehensive look at financial market anomalies in language that is accessible to all. While no book on the market offers foolproof ways of making money, this book will certainly be an instructive read and bring the lay person up to speed on the latest research.” –Raghuram Rajan, Joseph Gidwitz Professor of Finance, University of Chicago
“This is a very nice summary of the academic literature on anomalies, and contains some intriguing suggestions for taking advantage of them.” –Andrew W. Lo, MIT
“A great Christmas gift for investors.”–SmartMoney
User Ratings and Reviews
5 Stars great introduction to trading strategies
I don’t think anybody is going to get rich implementing the ideas in this book. I do think people can do very well with ideas that this book will give you. There is no free lunch in finance, but knowing the basic principles and themes you can do reasonably well. For example, I’ve found ways to make money on his chapter 4, “short term price drift,” though my toolbox would make the strat unrecognizable to someone who had only read his book. The chapter on merger arb is pretty good; add some models for the spread (or Boesky like “models”) and you could do well on Risk Arb. Other stuff; momentum trades can work better than doing nothing. Add in some vol signals and the ability to hold cash, and I bet this works pretty well. If I ever get a 401k again, that’s about all I can think of doing with it, so I probably will. Bias forward on FOREX -something I’ve been meaning to look at for a while now. I can think of reasons why it would be true anyhow. Definitely believe the NAV arb thing, though I bet it’s pretty small and probably disappearing fast.
I don’t remember if he characterized the risk involved (I didn’t write anything about Sharpe in my notes anyhow); I suspect there is substantial risk in all of his strats. Certainly there is substantial risk in things like merger arb. Lots of what he describes does end up having a lot of human input also; for example, in the S&P index add strat, you had to do a human sort of which adds were meaningful. It’s a pretty simple thing to do in principle, but it isn’t what guys like me really want: which is a strat which is close to taking human subjectivity out of the loop. Certainly, this makes backtesting more meaningful; it is easy to be right when you already know the answer. There is also the issue (which I found out in the S&P strat) of the price of gathering data. One of the reasons such simple strats exist is the cost of gathering the information you need to implement them is fairly high compared to the payout. Would I be better off screen scraping all the live long day to implement some lousy subjective strat with a low Sharpe anyway? Or would I be better off getting a job at a Bank, making a lot of money, and buying bonds? Sounds flippant, but this is the source of lots of “arb” opportunities -including many of the ones in this book. Such strats may simply not be worth the arb’s time.
Still, as a book which describes some basic, profitable trading strategies, Singal’s book is a winner. You can use the basic ideas expounded here to have better ideas. For a new trader, there aren’t many books like this you can get anything useful out of; Ernie Chan’s book is the only one I can think of offhand.
5 Stars Buy Hold Outperform
Buy This book has unique advantages over its peers. It states things believed to be true. The anomalies that is describes are supported with careful research.
Hold You will want to keep this book on your reference shelf. It can be read several times, and has many gems in it. There are very few books that cover this material.
Outperform The book can be used to demonstrate correct ways to pursue the markets. If markets are not completely random, then use this book as your starting point.
4 Stars Interesting book well written, temptation ot invest again
This is an “easy to read” well written book. It does not immediately bore the reader to death like many other investment and economics books. The logic behind weekly and annual stock trends is logically explained with examples. However very few novice investors can profit playing the stock market with these techniques. All it takes is some unexpected event like the “real estate melt down” to squander your fortunes. I recommend the book, but I don’t recommend the stock market for the weak at heart.
5 Stars academic AND accessible
I’m impressed with what a good job Vijay Singal has done. Beyond the Random Walk is very clear and thorough, turning what is normally overly academic research/text into easy to follow prose and investor-friendly instructions. I’m reading a library copy now, but want to have my own copy–a rarity for me.
5 Stars An excellent invesment
Vijay has written a very lucid account of different pricing anomalies and how to take advantage of them. His section on momentum-trading strategies was particulary interesting to me. Sector-fund momentum trading strategies have been shown to beat the market averages ( Hulbert’s Financial Digest has reviewed sector fund newletters and thinks there’s statistical evidence of superiority in their total returns versus an unmanaged index). It’s well worth considering as an investor if you’re willing to invest a little time. I’ve based a website on this approach, topsectors.com, so I’m quite convinced it’s a strategy that hasn’t been fully exploited today and so pricing anomalies exist that the average investor can use to their advantage.
Making it in the market Richard Neys low risk system for stock market investors
April 29, 2009 by Low Risk Stocks · Leave a Comment
Making it in the market Richard Neys low risk system for stock market investors
The Day Traders Course Low Risk High Profit Strategies for Trading Stocks and Futures
April 29, 2009 by Low Risk Stocks · Leave a Comment
The Day Traders Course Low Risk High Profit Strategies for Trading Stocks and Futures
“No one in the world has done more battle in the trading pits than Lewis Borsellino. If you’re looking for theory, this is not the book for you. But if you want to learn how to trade in the real world, Lewis is your greatest teacher!” -Larry Connors, CEO and Founder, TradingMarkets.com
“Lewis Borsellino is one of the only local traders who can actually single-handedly move the entire futures market. Those who are lucky enough to live in the same city as him have been able to witness his brilliance as a trader year after year. In no uncertain terms, Lewis Borsellino might be the greatest futures trader of our time whose skills and innate ability to `feel’ key inflection points in the market have earned him tremendous success over the years and the utter respect of every trader who has ever shared the floor with him. Truly, having a trader of this magnitude share his experiences and secrets in this book is too valuable to overlook.”-B. Goran Yordanoff, Independent Trader and Financial Columnist
“In the world of books on trading, there are plenty that talk the talk, but can’t walk the walk. Lewis Borsellino can walk the walk and talk the talk because he has made a living by being one of the best pit traders in the world for over twenty years. If you want to learn how to day trade from a practitioner, I can’t imagine a better book than The Day Trader’s Course.”-Jon “Doctor J” Najarian, Chief Market Strategist at BTBull.com and Director of Research & Arbitrage at ptisecurities.com
User Ratings and Reviews
3 Stars Introduction to trading
This is exactly as described a how-to book for daytraders. There is a perfunctory rehash of the basics of technical analysis and execution systems. The material here is helpful as a stepping stone if the reader has never been exposed to the material but there is nothing groundbreaking presented. That alone is of interest to me. Here is a trader that has been successful on the floor with little more that a few support and resistance numbers in his head. It is clear from his book that you will make bigger profits if you understand the market, even if you invest little time reading the latest book from newest technical analyst.
There are sections about how to prepare for the trading day, the dynamics during the trading day and how to use time effectively after trading is done. Again, the material presented is basic in nature. Perhaps when a book is written with such a large scope, it would be impossible to add much depth to the various topics. Borsellino is a legend of trading. But I would recommend Schwartz’s Pit Bull over this effort.
3 Stars Beginners Only
One of the trading legends of this generation , I’d imagine it might have been painful for Lewis to “talk down” and write the book in this total trading newbie tone. Experienced traders will find little information here of any use. Just very basic TA, bit of overworked trading principles and the customary psychology chapter. I did find one page discussing fair value and premiums to be interesting and there are a few pages going over the economic indicators at the end of the book that might be worth taking notes on. Overall, a decent pick up for a total beginner though useless for any seasoned trader.
5 Stars A Complete Insight Into The Day Trader’s Course
Lewis Borsellino has earned a reputation as one of the greatest for his 20 years of pit trading at the Chicago Mercantile Exchange. Now that computers have brought trading to offices and homes around the world, Lewis is able to teach people lessons he has learned the hard way and that are as applicable now as they ever were. This book offers the essential ingredients that have given the author what it takes to become one of the best. Through Lewis’ real-world experiences, the virtues of mental preparation, technical analysis, devising a trading plan, execution and discipline, should hit home with clarity.
The first chapter of the book is dedicated to mental preparation, and the importance of fully understanding the basic truths about trading. Lewis has seen people from all types of professions think they can take what they have learned in their fields and apply it to trading. This is not the case. When Lewis shares his experiences, it is clear that the market requires a certain “frame of mind” that is like nothing else.
At one point in Lewis’ career, he had gained $4.5 million in profits, but saw it evaporate to only $100,000. From this loss, he learned that certain errors in his thinking were the culprits. For example, trading in big size may be good for the ego, but it can get you into situations that a poor market won’t accommodate for. As Lewis said:
“I couldn’t fling around hundreds of contracts to satisfy my ego or because people in the pit expected that of me. I had to trade what suited both my own plan and the market conditions. After that my trading was noticeably on track.”
With a proper mindset in place, a good trader needs a good plan to execute. Essential to Lewis’ plan is technical analysis. According to Mr. Borsellino, technical analysis, as far as drawing up the images, is the easy part; interpreting them is where the real expertise comes in. With this book as your guide, insight into what Lewis looks for in a chart will be made clear. The goal here is to identify the trend at an early stage and stay with the trend until it has ceased. Just learning the patterns will only get you so far, it takes the advice of a real pro to gain a superior edge in the markets.
The most important aspect of trading for Lewis is discipline. This means adhering to a plan, focusing on the trade, not the money, and goal setting. Without discipline, the best strategies in the world will fall apart. Knowing when, and when not to trade, as well as not letting matters outside of trading interfere with your decisions, are the results of practicing good discipline. This challenge is something even Lewis deals with now in his career. Through sharing personal experiences, the author gives tips and advice on how to incorporate good discipline, and to avoid common pitfalls that will wreak havoc on your account. Again, just being familiar with the importance of discipline is one thing, but having Lewis as your guide is a real treat.
I will admit that I am a trading book junky and find something to learn from just about everything I pick up. But this one comes from the perspective of one of the world’s greatest, and with co-author Patricia Crisafulli, this well-written read will help solidify what’s really important when it comes to obtaining success. As Larry Connors, CEO of TradingMarkets.com, puts it, “If you’re looking for theory, this is not the book for you. But if you want to learn how to trade in the real world, Lewis is your greatest teacher.”
4 Stars Part-time traders look here.
Hey, if you are like me and have a full-time job while you trade, then I think that you will find this book valuable. This is real world stuff from a real trader. I mean, if failure is the best teacher then this guy can has learned alot. In the book, Borsellino talks about how he worked over $4 million down to $100K and what he learned from it. That’s the best part about this book, lessons like that broken down into a simple set of rules to trade by. Another plus, Borsellino gives you his support and resistance levels every day on the S&Ps free on TradingMarkets.com!
1 Star Waste of money
Here we go again, another trader joins the herd of new writers and “experts”!. The writer spends more time talking about his web site and himself than teaching how to trade !!. I managed to return this book and I got my dollars back. DO NOT BUY THIS BOOK, PERIOD!
High Return Low Risk Investment Using Stock Selection and Market Timing
April 29, 2009 by Low Risk Stocks · Leave a Comment
High Return Low Risk Investment Using Stock Selection and Market Timing
A blunt, opinionated, insiders’ perspective on playing the stock market. Cautious investors will appreciate this book’s emphasis on low risk. More experienced players will relish its eye-opening assessments of well-known investment theories and systems, from hedging to dollar cost averaging.
User Ratings and Reviews
5 Stars Nightly Business model portfolio up 214% since 1995
When he appears as one of Paul Kangas’s Friday market monitors, Robert F. Drach always has a cagey smile like he knows something you don’t. He’s one of the few analysts (Hilary Kramer is another) on the show who isn’t full of bull.
Drach manages the Nightly Business Report model portfolio, which beats the major averages, according to the NBR web page.
Relative performance since portfolio initiation (5/5/95)
This Model Portfolio + 214%
Nasdaq Composite + 203%
Dow Industrial + 194%
S&P 500 + 172%
Drach says he doesn’t buy any of the stocks he recommends on NBR. Yet that sly smile seems to have money behind it. He compiles a “Master List” of about 100 of the best American stocks, or “A+” stocks as he calls them. Stocks are bought or sold depending on their overvalued/undervalued status. He even times the market by gauging the overvalued/undervalued status of the entire Master List.
The method isn’t about hitting home runs; it grinds out small steady profits from only a few positions. You don’t have to buy all 100 stocks! Nearly every position winds up a winner. If you’ve done any stock trading, you know the trauma of taking losses, even small ones. Drach all but eliminates that. Woo-hoo!
Drach is obviously some kind of financial egghead judging by the chapters in which he lays out the rationale behind his methods. Don’t try this at home is the appropriate disclaimer. Save yourself the brain damage and subscribe to his newsletter. When I checked in ‘05 it was only $100 a year. What a steal for advice from a pioneer analyst.
For those of you who like to look under the hood and understand how a thing works, the book is a worthwhile read. Drach writes with the tone of someone who has it all figured out. I can only imagine what that feels like. I haven’t even figured out what to have for breakfast.
In addition, you get the advice of another financial egghead, Thomas J. Herzfeld, who gives you the lowdown on closed-end funds. Closed-end funds are fertile ground for those who don’t want to follow the crowd. Only a few financial nerds even know what they are. Herzfeld, also a Friday market monitor, has been following closed-end funds for 40 years. He might be the world’s foremost authority. Unlike Drach, Herzfeld does buy the funds he recommends. With his $625-a-year advisory service, Herzfeld is livin’ large.
Update: On his December NBR appearance, Herzfeld said right now is “the best opportunity in at least a decade” for closed-end fund traders.
On his January 18 appearance, Drach delivered a bullish assessment for stocks in ‘08. The “A+” stocks are beaten down and poised for a rally.
KANGAS: So you’re basically telling our viewers, don’t panic and stay with high-quality stocks, correct?
DRACH (with a sly smile): You want the person you’re buying from to panic, but that’s what they’re doing.
5 Stars High Return, Low Risk Investment - Robert Drach
A true “cult classic” among investment books. The authors take the traditional academic and modern portfolio theories of investing and turn them upside down in this straightforward description of how to become a true professional stock trader.
The method and logic used are down to earth so that the average aspiring stock investor can utilize the system.
For any stock investor truly after high consistent return with low risk, it is the only system you will ever need.
The method is as relevant today as when Mr. Drach started his investment research report 30 years ago.
3 Stars Potential Classic Marred by Poor Editing
This book performs a valuable service to novice investors by explaining some of the realities of the stock market. Unfortunately, the poor editing makes the book awkward to read and unnecessarily hard to understand. If the publisher could do something about that before bringing out the next edition, the book could become a classic.
3 Stars “High-Return, Low-Risk Investment”
With better editing this book could have been a classic. The authors perform a valuable service in disposing of some common illusions regarding the stock market, but the reading experience is marred by frequent defects in the English.
5 Stars A great Investment Philosophy
This is an excellent book that is still useful years after publication. I would love to see it back in print so I can buy several more copies.
Contrarian Ripple Trading A Low Risk Strategy to Profiting from Short Term Stock Trades Wiley Trading
April 29, 2009 by Low Risk Stocks · Leave a Comment
A short-term trading strategy based on the buying and selling of predominantly large-capitalization stocks Contrarian Ripple Trading sets out to teach its readers a short-term stock trading technique that can assist ordinary people, with no professional financial background, how to trade profitably. This technique-which has been successfully used by the authors-is based on contrarian principles and exploits the normal short-term fluctuations of both the overall stock market and individual stock prices. It recommends setting purchase price points based on comparisons of a stock’s prevailing price to its 52-week high and low, and espouses an aggressive selling discipline under which profits are always taken. Placing an emphasis on both the buying and selling of predominantly large-capitalization stocks, Contrarian Ripple Trading contains the perfect strategy for readers looking to increase their trading profits and minimize overall trading risk.
Aidan J. McNamara (Wyckoff, NJ) is Associate Publisher at The Deal LLC, whose print publications include The Deal, The Daily Deal, Corporate Dealmaker, and Tech Confidential. Martha A. Brozyna (Wyckoff, NJ) is a part-time lecturer in the History Department at Rutgers University.
User Ratings and Reviews
1 Star Ridiculous Performance Record
The performance record presented in this book is preposterous. It shows hundreds and hundreds of round-trip trades over a period of several years. Apparently, they are 100% profitable. That’s right, not a SINGLE losing trade. Digging deeper into at while in the Chairs at Barnesy, I noted that the performance record separated out a bunch of trades that were unprofitable but which they had not sold yet.
Moreover, their system lacks any type of analytical rigor. You don;t really have to know anything about the market, the economy, the industry that the company is in or even the company itself. Just buy a blue chip stock on a day when the market is down sharply and the stock is near its 52-week low. Then wait until you have a $50 profit.
A previous reviewer noted that settlement issues would make execution of the strategy difficult. The authors note that a significant percentage of the trades were opened and closed on the same day. Probably, this means that the authors’ account(s) are classified as “pattern day trader” accounts. I didn’t see this mentioned anywhere, though I must admit I could have missed it.
There are lots of better investment books out there.
This is book only a discount brokerage company could love.
2 Stars Did I miss something?
If it were not for the very positive comment from the author of “Trading Rules That Work”, one of my all time favorites, I should not have read it and am still wondering whether I had missed something important. IMHO, the authors performance from 2005 to Feb 2007 was attributed to the upward trending market, luck and under trading (or deep pockets which allowed them to hold losing positions that long), and thus far from its self claimed low risk, short term trading, non value investing based approach. In short, not recommended.
5 Stars Trading with a Proven Track Record!
Finally, a strategy that fits perfectly with my personality type and investment mindset! Contrarian Ripple trading is sure to become a household name (at least in the households of wise traders). Aidan McNamara and Martha Brozyna bare all, from their detailed index of each trade over a twenty six month period (not one for a loss!) to their thoughts on which stocks can be successfully ‘ripple’ traded. They’ve even included a brief history of how the modern market has evolved from it’s simple days of traders meeting under a buttonwood tree in Manhattan.
In my short history of investing and trading (and this book definitely helps define these two terms), I’ve come to grips with what my two fatal blunders are: holding losers until I just can’t take it anymore and settle for a loss, and cutting my profits short. Contrarian ripple trading actually encourages me to exercise both of these so-called blunders by changing the dynamics of my thought process before I even enter a trade. Knowing the right stocks to pick, when to buy, and exactly when to sell has completely transformed my trading style, not to mention my bottom line. The only problem I have with this book is that it wasn’t written ten years ago when I began my little dance with Wall Street.
Please keep in mind, this is by no means a ‘get rich quick’ plan meant to replace your day job. Both the authors and myself have benefited from this alternate stream of income that flows with the market, and as such is prone to vary in regard to its consistency. That being said, it should be noted that each year’s net income from the trades indexed at the end of the book has continued to increase. This may be due to the authors using the previous year’s profits to ripple trade a larger number of stocks, or it may be the case simply because they’ve grown more comfortable with the strategy’s validity and proven track record.
2 Stars The book that broke the camels back
If you look at all of my reviews, you can tell I read a lot of investment books. This one looked “interesting” and had some good reviews so I ordered it. In 30 minutes, I read the whole thing.
Basically the book says to buy large cap stocks near their 52 week low, look for stocks that also have low PE’s and pay dividened’s. Buy 100 shares of the stock and sit on it until they have a $40 profit and sell. The “buy” strategy covered a page and 1/2 of the whole book, the rest was fluff. There is no loss plan, use your own loss program?? Yes, they can be 100% profitable using this method unless you buy a stock going down the drain. You just may have to sit on it for a while until the stocks price goes back above what you paid for it.
Never again will I buy a book based on looking at the ratings. I’m batting about 1 out of 5 investment books that are worth anything.
5 Stars A system that lays it out on the line
Here is a trading book that does not promise the world to the reader, but rather speaks frankly of how a system can help in taking advantage of unlikely opportunities in the stock market. It takes a contrarian and a very confident person to begin a book with the statement that these authors began with. Where so many find buying opportunities when everyone is flocking to the same stocks, these traders found a way to recognize the real value of stocks that others seemingly have abandoned. Additionally, this book encourages the use of discipline and an actual engagement with the stocks as keys to success. Instead of peddling a product that tries to convince the buyer that they can make money in stocks with doing hardly nothing at all, the authors advocate basic understanding, engagement, and knowledge as the keys to finding profits in stocks. Can’t wait to employ these techniques.
Market Neutral Investing Build Consistent Low Risk Profits by Creating Your Own Hedged Portfolio
April 29, 2009 by Low Risk Stocks · Leave a Comment
Market Neutral Investing Build Consistent Low Risk Profits by Creating Your Own Hedged Portfolio
The stock market still intrigues people, but shell-shocked individual investors have learned to be more savvy and realistic with their investments. There is no way to eliminate risk when stocks fluctuate, but risk can be reduced and even controlled. Geared to individual investors, Eric Stokes unravels the mysteries behind using market neutral investing principles, enabling readers to make money by using his proven low-risk, high-return balanced techniques.
In addition to tips that cover beginning to intermediate investing topics, Stokes also presents the strategies behind market neutral investing in practical, easy-to-understand terms. Stocks go up and down, but investors shouldn
How To Be a Value Investor
April 29, 2009 by Low Risk Stocks · Leave a Comment
“From the bare basics to tips for the self-made sophisticate, Lisa Holton captures both the art and science of contrarian investing in her book HOW TO BE A VALUE INVESTOR, arming investors with the necessary tools and information they need to make informed investment decisions. Holton not only emphasizes the age-old values of investing–patience, due diligence, and conviction–but also brings a contemporary angle to her approach, making a convincing case for value investing as a wise and lucrative choice.”
- Eric McKissack, CFA, Vice chairman and co-chief investment officer, Ariel Mutual Funds.
HOW TO BE A VALUE INVESTOR is designed to help you master–within hours!–the art and science of value investing. Built on the rock-solid value investing tenets that guided Warren Buffett, Benjamin Graham, and others, this concise but comprehensive wealth-building blueprint gives you practical, hands-on techniques so you can squeeze the most profit from today’s volatile markets. Look for these other user-friendly books in The McGraw-Hill Mastering the Market Series:
How to Be a Growth Investor;
How to Be a Sector Investor;
How to Be a Small-Cap Investor.
User Ratings and Reviews
5 Stars Complete and Compact. A Smart Read.
I feel that the author explains value investing in a practical and non threatening way to the beginning and intermediate investor. In these times of Investing for Dummies manuals How to Be A Value Investor not only tells the reader how, but why.
2 Stars Disappointing
The book is OK on general principles-Don’t time the market; Study companies; Diversify; Develop your own investment plan, Etc. But I bought the book for specifics of value investing-how to read and evaluate annual reports and financial statements. I was expecting chapters 3 and 4 to be the most helpful of the book. Unfortunately I did not find that to be the case-information on how to evaluate annual reports and financial statements could have been more detailed and complete and there are confusions/errors about some of the key evaluative tools.
Current Ratio: Pages 43 and 53 says a Current Ratio of 2 OR LESS is good. Page 51 says 2 OR MORE! Actually I think it is 2 or more-because there should be no more than $1 of current liabilities for every $2 of current assets.
Quick Ratio: Pages 43 and 54 say a Quick Ratio of 1 OR LESS is good. Page 51 says 1 OR MORE (Appendix A says 1 to 10). Actually I think it is 1 or more-because a company should be able to cover all its current liabilities with current assets less inventory.
Financial formulas can be complicated and there may be no one clear-cut answer for all situations. If so, a discussion should have been included to help readers apply these tools.
Gross Margin: Page 63 shows Walgreen to have a Gross Margin of 94%. It is not clear how a gross profit of 12,655,000 was arrived at-the closest thing I see is a total of costs and deductions on page 59 which is listed on the 10K as “net revenues”. While this is most likely a minor glitch, it should have been caught by the author or editor.
Two other criticisms. First, the use of the charts by Bigcharts.com. What do they mean and how should I use them? If charts are included in a text, they should be clearly labeled and there should be an explanation of how to use them.
Second, choice of material on which to base the book. The author based some of the book on interviews (most by telephone) with 5 value investors. Why/how were these interviewees chosen? I think journalists who include interviews should explain the justification for their choice of interviewees. This really should also apply to the books chosen as references-and articles quoted.
2 Stars Good but could be better
Part of a series of books for first time investors, “Value Investor” contained some useful techniques for analysing financial statement but did not really get to the heart of the difference between value investing and growth investing. Also, that the book lacked authority and was not convincing because it failed to address how the stock market actually works or risks associated with establishing a value-based investment portfolio.
One offputting feature was embedded advertising of value funds and their managers with no analysis of how they performed vis a vis other actively managed funds or index funds.
Recommended as a rough guide to value investing but not as the basis for an investment strategy.
4 Stars A Good Read!
Lisa Holton describes the way value investors find bargain stocks. She looks at a variety of financial formulas that can help you unearth good deals. This is a useful primer for investors, since it offers clear explanations of financial ratios. The book includes plenty of specific examples of ways to apply formulas to a company’s financial statements. She clearly describes the contents of SEC documents and offers helpful advice about when to sell a stock. We at getAbstract recommend this book for beginner to intermediate investors, for those unfamiliar with “value investing,” and for those interested in basic portfolio planning. This book focuses on the United States stock market and may be less useful in other countries.
5 Stars The Building Blocks of Value Investing
This is an excellent and informative guide to a underused but highly profitable strategy. Although the book’s self description calls this strategy “contrarian” there is a clear difference between that and value investing. The strategy outlined in this book is certainly value.
This aside, I found this book extremely helpful. The tools needed to build a winning portfolio are covered comprehensively and the author also gives readers a formula for calculating what expected growth should be. Highly recommended for anyone seeking an exciting and low risk investment strategy.
Beating the Dow with Bonds A High Return Low Risk Strategy for Outperforming the Pros Even When Stocks Go South
April 29, 2009 by Low Risk Stocks · Leave a Comment
Michael B. O’Higgins entered the stock-brokerage business in the early 1970s, right on the verge of a rabid bear market. So his skepticism about the continued rise in stock prices is understandable. At the same time, he notes that bond yields, as of the 1999 publication date of this audiobook, are historically high relative to inflation. Therefore, an investment portfolio combining stocks and bonds, rather than stocks exclusively, should beat the Dow Jones Industrial Average in the future. Hiring A&E Network’s Jack Perkins, cohost of the acclaimed Biography series, to read this audiobook was a stroke of genius. Perkins’s voice adds the heft of lifelong experience and hard-won wisdom to O’Higgins’ rather dry explanations of what bonds are and why you should invest in them. (Running time: 3 hours, 2 cassettes) –Lou Schuler
User Ratings and Reviews
5 Stars Good INvesting Advice for Low Interest Rate Cycles
Zero coupon bonds are the bonds spoken of in the book’s title. Zero coupon bonds do well in falling interest rate and stable, low interest rate investing environments as we had 90% of the time from 1982 to 2004. Now is NOT the time to use this book’s advice, wait until interest rates fall again (2010??).
but it is true, by not owning any stocks O’Higgins outperformed the greatest -and longest- bull market in history.
1 Star A sad waste of paper - babbling brooks are better
Having read many books on various financial subjects, this one is on my list as one of the top 10 wastes of time. In fact I am only writting this to hopefully save you time! Warning! When the reviews are from annonymous ‘a reader’ be suspicious!
2 Stars Interesting…but confusing
I agree with much of what has already been said as far as the amount of filler and the editorial glitches. And can anyone figure out the last chart — table 11.1? These numbers make no sense and don’t even correspond with the info on table 9.1. I began the book with some excitement but ended up feeling very uncertain about the method.
5 Stars Profitable, Pragmatic Advice for All Investment Scenarios
This is one of the few stock market books from the 1990s that will be read and appreciated many years from now. While silly stuff like “Dow 36,000″ & Harry Dent quickly withers away, O’Higgins advice gains credibility every day in this apparently multi-year bear market. Several web sites (beartopia dot com & others) mention this book. Perhaps the book’s title should have substituted “zero coupon bonds” for the word “bonds.” Do look up the authors corrected list of investment steps here at Amazon, however, do not let the slightly sloppy editing deter you from learning this powerful investment advice. The more knowledgable one is of the market, the more one appreciates O’Higgins and his two works. This book’s advice works in bull and bear markets.
2 Stars Not very good, but….
The book was not very well written, and why he felt the need to devote 70 pages describing in copious detail all 30 of the Dow stocks is beyond me. However, his 30 year zero-coupon analysis does have something going for it, and the inflation rate is a good predictor for a change in asset allocation.
