5 comments about The Dhandho Investor: The Low - Risk Value Method to High Returns.

1. In the beginning of the book the author acknowledges that there are no new ideas presented in this book and all the concepts have been taken from other sources. I agree. The book is about a 180 pages long and immensely redundant. If you were to get rid of the repetition and direct quotation of other sources, you could boil the book down to no more than a 100 pages. Although entertaining to read the success stories of individuals, I was a little disappointed that I decided to spend my Sunday reading this book.



2. The Dhandho Investor was recommended by a colleague who knew of my interest in money management and I had fairly high expectations. The book provides a decent introduction to value investing by applying simple valuation techniques to a variety of situations. It also provides resources to get you started as a value investor.
   
   However, I found the first 5 chapters on Dhandho concepts superfluous. In fact, the Dhandho concepts and the examples from Hindu mythology were more distracting than illuminating, notwithstanding some entertainment. The Dhandho concept itself, explained as an original or unique style of business principle followed by Indian immigrants, is vacuous. The idea of starting and running a family business as the low-cost producer (through very low overheads) with borrowed money is not limited to "Patels" but has been known and practised by many immigrant communities across the US - Korean grocers, Chinese laundromats, and Vietnamese doughnut shops, to name a few. It is not the idea that is valuable, but the adoption and execution of the risks as few people are willing to live a life of penury exemplified by immigrant entrepreneurs. I would also add that I find the "lattice theory" overdone in general in the investing world lately. The concluding pages of the book urged the reader to improve the world through charity and altruism, a reference I found both irrelevant and condescending.
   
   Still the value investing concepts of Graham, Buffett, and Munger, are very well illustrated and one gets a good insight into a successful value investor's mind. I found the thread of the story an interesting one particularly with Mr Pabrai's development into a value investor after being a successful entrepreneur early in his career.
   
   Overall, I would recommend this book with the above caveats, but would urge that you read Benjamin Graham's books first.



3. An easy read but essentially trivial. A hotelier example and a few other vignettes are used to make the case that there's a free lunch (no risk, high reward). As if it was that easy. Actually the hotelier example (investing a couple of million in a hotel in the middle of the So Cal desert, after 9/11, that just happened to work out) makes the case there is no free lunch. A better book is by Dreman, on contrarian investments, or "Fortune's Formula" by Poundstone, if you're into this thesis of a free lunch.
   
   Avoid this book like the plague.



4. I am not trying to hate on this book - I saw a review of this on CNBC and they selected one passage and I was really intrigued by the idea of "heads i win, tails i dont lose much" (by the way, the book repeats this north of 20-30+ times and I got extremely sick of this as I went half-way through the book) and decided to read this on my own time. I have always found a lot of credibility in analysis driven by limited downside risk or "value" investing in the sense of investing at close to book value or when the probability of success is high given entry cost is low.
   
   However, I could not help but loathe Pabrai's seemingly infatuated mindset with Buffett. This book is essentially 1) very rudimentary cash flow and financial background (if one can even call a few tables of numbers cash flow analysis), 2) half of the book is a ra-hash of either direct quotes from Buffett or how difficult Pabrai finds to mask his vague attempt to almost equate his investing style to that of Buffett's, and 3) largely a promotion of Indian-Hindu concepts as they relate to very prevalent and hardly insightful financial concepts.
   
   I would not recommend anyone read this book. I usually don't leave reviews and this is the first one I have done - I promptly threw the book out after I read it that's how much I could not stand wasting 2-3 hours reading this guy's writing.



5. This was a great book by someone who had great market results. He clearly states his objectives and how to do it. he gives great examples so we can follow his footsteps. However he used to have amazing returns (even better ROI than Warren Buffet). But since I got the book, almost 2 years ago, he has not been doing well at all in his fund. So I am not sure yet that his system works in the longer term. Right now he is way down this year.

5 comments about The Buffettology Workbook: Value Investing The Warren Buffett Way.

1. Written by Mary Buffett, former daughter-in-law of Warren Buffett, and David Clark, a portfolio manager, "The Buffettology Workbook" is the best investment I've ever made. The financial formulas you'll find in this book are all the ones they should teach in business school, but don't.

   The book is broken down into 23 chapters, each no more than a few pages, so you can read a chapter a day (and continue to review the chapters for the rest of your investing career). The first seven chapters give a breakdown of Warren's investment philosophy, value investing. Here, you learn about the short-sightedness of the market and the bad news phenomenon. Also, the authors identify the difference between commodity-type businesses and consumer monopolies, and tell you why it's far better to own consumer monopolies. Once you understand these concepts, you're halfway toward success as an investor. Now, you need to learn how to identify the correct buying opportunity. That's where the true value of this book comes into play, offering formulas and equations you won't find most books.

   The remaining chapters in the book focus on the examination of financial statements, the acquisition of pertinent information (what's important and what's not), then they tell you how determine an investment's desirability. You'll learn the value of high rates of return on shareholder equity, how to measure management's ability to utilize retained earnings, and Warren's ideas for the Internet and short-term arbitrage commitments.

   I read this book beginning to end the day I got it, but I'll continue to familiarize myself with its formulas for the rest of my investing career. Although it marks only the beginning of one's investment knowledge, learning these bedrock principles are what separate successful investors from mere average ones... Buy this book!

   Britt Gillette
   Author of "Conquest of Paradise: An End-Times Nano-Thriller"




2. This is one of the worst investing books I have ever seen. Not only does it have absolutely nothing to do with the way Warren Buffett actually invests, it completely makes up investing methods.

   For instance, the book talks about discounting future streams of income. The Oracle of Omaha was quoted at a Berkshire Hathaway meeting as saying he NEVER uses discount future cash flow.

   Even worse, this book promotes "book value growth" as a method for evaluating a stock's worth. Book value is an accounting term representing the net equity for a firm on ONE PARTICULAR DAY IN TIME. Change the date of the balance sheet and the value calculated by book value growth may change dramatically.

   If you want to invest like Warren Buffett, check out The Intelligent Investor by Benjamin Graham.




3. This is a good book and it is an even better book if it is used with their other book entitled The New Buffettology - which is better than the first edition entitled just Buffettology. In regard to the reader from TX Buffett uses growth of book value to determine the relative performance of Berkshire Hathaway - just check out the annual report. And Buffett is on record saying that a company is worth its future income stream discounted to present value - though Charlie Munger and I have never seen him do it. This was brought up at the 2001 Berkshire annual meeting. As far Ben Graham is concern Buffett and Munger are both on record saying that they no longer use the Graham's method - still worth the read though. Tim Vick, who wrote "Wall Street on Sale", loves the Buffettology series so much he wrote the cover recommendation. Check it out! And get on the program! You won't be sorry you did!!!



4. For those of you that are time-pressed, this is the best book in the Buffettology Series to read in order to glean a few secrets on the investment techniques of the Oracle of Omaha. The workbook covers both the qualitative and quantitative sides of Buffett's value investing approach, and provides the basic techniques one can implement in order to invest with a reasonable amount of success.
   
   The workbook is not exactly the best book on investing that I have read (that title goes to Benjamin Graham's The Intelligent Investor), but in its defense, it does provide a simple to implement investment strategy. Most of the techniques hinge on a few simple ratios and knowledge of simple present and future worth. Additionally, most of the limitations associated with the techniques are clearly and simply stated.
   
   The book has several merits. The chief merit of the book is that its approach to investing is self-contained, and emphasizes the qualitative aspects more than the quantitative aspects. In passing, readers that focus more on Part One of the book and skip Part Two, the quantitative part, could easily obtain a dramatic improvement in their investment results. Written in simple, easy to understand language, the target audience of this book is most likely that individual who depends on the Internet for all of her information on companies, as such sites as Yahoo, MSN and Value Line are routinely cited in the text as sources of information. The book is very well organized, quite possibly with the idea that it would fit the mold of a chapter-a-day format. Most chapters are usually no more than five pages long, with easy, cheesy word problems and true/false questions at the end of most every chapter to reinforce key concepts. The title of each chapter basically states the key concept to be learned, and key points are highlighted at the end of each chapter. Although it provides some theory and rationale for the techniques it attempts to teach, this is kept to a minimum, and the book focuses almost exclusively on application of the techniques. Those readers that are only interested in the methodology can simply skip to the 22nd Chapter titled 'Doing It Yourself: Buffettology Worksheet'. Thus, the book makes every effort to make learning, and ultimately using, the techniques as painless as possible.
   
   The major demerit of this book rests in its insistence on doing all calculations on a per-share basis. But then, this is how much of the information that is easily obtainable through such channels as Value Line and other sources is presented. One minor demerit is that the authors do not seem to be aware of the virtual ubiquity of MS Office, making it possible to perform all of the calculations in the book in one Excel spreadsheet, but then again, this is a minor demerit. Although there were a number of minor typographical and mathematical errors in the book, I am willing to overlook this, as the thinking and reasoning behind any investment proposition is more important, and is clearly presented throughout the book.
   
   Overall, I rate the book to be worthy of reading. It presents a simple and straightforward investment approach, and does not require an advanced degree in rocket science to implement it. All it really requires is a basic understanding of fractions, decimals and percents, and most important, a willingness to think and reason through the investment proposition. However, those of you with strong quantitative backgrounds will be very dismayed with this book (as I was initially), but as I said before, if you focus exclusively on Part One of the book and Chapter 22, then you will see a dramatic improvement in your investment results going forward.



5. Many books have been written about Warren Buffet's way of picking the right stocks at the right time, but the books of Mary Buffett and David Clark are the most sound, concise and actionable. There is another book by different author (by Robert G. Hagstrom) similar to Mary Buffett's writings: "The Warren Buffet Way", but it misses the important topics laid out in the Mary Buffett's publications. These major topics are: what are the differences between a "consumer monopoly" and a "commodity"; how to calculate the rate of return over a long period of time before choosing the investment; and so on. There is another great book about Warren Buffet and his investment strategy - "Buffet: The Making of an American Capitalist" by Roger Lowenstein, but it better describes Warren Buffet's biography and his relations with family, friends and the society, rather than how did he evaluate the companies. But please note that "Buffettology" is not a replacement of the book by Roger Lowenstein, I highly recommend reading both of them. What is you can omit is the book by Robert G. Hagstrom, above mentioned.
   
   I would recommend an abridged audio version of the Mary Buffett's work, instead of the printed book. The audio version discloses the most important factors of Warren Buffet's investment principles pretty well. Some of the background information is available on free letters to shareholders and Warren Buffet's lectures, but you might not want to crawl thought all these; you might want to save time and just listen or read the Mary Buffett's work, where all this information is perfectly summarized and laid out in a consistent way.

5 comments about Through the Labyrinth: The Truth About How Women Become Leaders (Center for Public Leadership).

1. Women have needed a replacement for the glass ceiling metaphor for quite some time. Drs. Eagly and Carli have given us a wonderful new metaphor, the labyrinth, that better describes the obstacles and realities women face. For years we all have been bombarded with the impediments for women, but no one has offered practical solutions. This book eloquently defines the problem and offers hope for us all. This year all of my close friends, including some men, will receive this book from me for Christmas.



2. Alice Eagly is a phenomenal writer and researcher. She has been working for decades on gender and leadership. Her newest theory, with Carli, is outstanding! She presents a new paradigm for thinking about women in the workforce and gives a preview of what is to be expected in the workforce in the upcoming years. If you have not already read this book, then what are you waiting for? The only thing that is better is having her present the work, which is sure draws a crowd! Also, for the non-academic it is an easy read with much detail on prevailing theory for the general public to understand.



3. A well written comprehensive review of research relating to women and leadership. Organized according to questions about leadership e.g. "Do Women Lead Differently from Men?" each chapter reviews the research, discusses trends, and suggests how women might respond. Unlike many titles on this topic, this is an evenhanded review of the research whose objective is to provide information to women as they navigate the turns and barriers of the labyrinth as they move forward in their careers.



4. Very interesting, well-written, and enlightening. A subject that is very timely and very helpful to women everywhere. Would heartily recommend.



5. I think that the authors have set a new baseline for discussion and insight in the quest for women's workplace equality, and beyond. The scientific foundation for their analysis finally moves the subject past anecdotal and self-reinforcing generalizations. The book provides a better term--labyrinth--for the unfair journey many (ambitious)women face. And the professors pulled off a neat stylistic trick: Scholarship and easy-to-read.--Larry Morrison

5 comments about 24 Essential Lessons for Investment Success: Learn the Most Important Investment Techniques from the Founder of Investor's Business Daily.

1. That is WHY he is "plugging" his paper. You must UNDERSTAND his paper to USE his paper so he "PLUGS" his paper - more correctly - DISSECTS - his paper so you can more easily USE the information. To all the ingnoramus reviewers who denounce this book as a "Sales Pitch" have clearly not bothered to pick up and read the Investors Business Daily but are paranoid of being sold and snookered. Perhaps they've been had too many times. Sometimes its ok to be sold. If you're sold on sound princibles and solid information as in the information in this book and it's "plugged" paper Investors Business Daily by Mr. O'Neil (ranked 12 in in the top investors of all time) which he offers FREE for a MONTH home delivered daily wrapped in plastic. C'MON GUYS!!!



2. I tried this and it works most of the time! You have to follow all the rules to make it work.



3. This book isn't about getting rich quick. It takes time, study diligence and patience coupled with controlling ones emotions to become an excellent investor.
   
   William O'Neil, who started a successful financial paper known as Investors Business Daily, wrote How to Make Money in Stocks. Decade of research, critical thinking and common sense has helped O'Neil to create some very powerful ways of investing successfully. He melds both the technical and fundamental aspects of investing.
   
   Each of the 24 lessons in this book is provided in a chapter form. Just a few of the powerful lessons are: Follow a system Rather Than your Emotions (Lesson 3), How to Buy a Stock at Just the Right Moment (Lesson 9) How to Gauge the Stock market's Health (Lesson 12) and many more.
   
   I have read many books, magazines and articles on investing in stocks, bonds, mutual funds and more over the years. O'Neil's ideas are some of the most solid and consistent I have found to apply to the stock market. They are easy to read and understand the basic...but like anything worth while...it takes years to be good. I have read three of O'Neil's books and have found rich ideas in all of them.
   
   The Re-Discovery of Common Sense: A Guide to: The Lost Art of Critical Thinking



4. Just finished "24 Essential Lessons for Investment Success" by Bill O'Neil, who happens to be the publisher of Investor's Business Daily. Consequently, the book is more or less an extended commercial for the paper -it is an investor's guide, but an investor's guide as applied to using Investor's Business Daily.
   
   However, there's a good balance of information here. If you can steer past the obvious bias, he has some good tips I'd like to try out some day. He presents a formulaic approach for success in the market - not too conservative nor too risky. It certainly makes good sense. And it's obviously worked well for him.



5. I read `The Successful Investor' and `How To Make Money in Stocks' by O'Neil. Both are good books for the beginning investor. However `24 Essential Lessons' is a big disappointment, it is nothing but a plug for O'Neil's newsletter the Investor's Business Daily. '24 Lessons should be given away for free to entice people to use Investor's Business Daily (IBD) instead of sold as a book. There is a plug for IBD on almost every page, often more then five times per page.
   
   Page 38 has IBD plugs 5 times:
   Only Investor's Business Daily gives you "Volume Percent Change"........
   
   For example, a stock showing a +356 volume percentage change in Investor's Business Daily stock tables indicates.........
   
   Additionally, Investor's Business Daily provides special screened lists daily which identify stocks with the greatest percentage rise in volume.........
   
   It's impossible for big institutions to buy a stock without it showing up in either Investor's Business Daily "Volume Percent Change" column in the stock tables .....
   
   Investor's Business Daily enables you to easily track the institutional elephants......
   
   Page 39 only has 2 plugs:
   Investor's Business Daily has another proprietary gauge that can be very helpful in indemnifying whether a stock being sold is being brought or sold......
   
   All you need to do is get in the habit of checking Investor's Business Daily Mutual fund section.......
   
   Page 40: 2 more plugs
   
   Page 41: 3 plugs.
   
   I can go on and on listing the pages IBD is mentioned on and how often.
   
   The ending of this book is dedicated to the advantages of using Investor's Business Daily. I'm writing this review because the author is taking advantage of people selling this book. He should be ashamed for himself.

5 comments about Winning the Loser's Game: Timeless Strategies for Successful Investing.

1. Charles was not the first to blow the whistle on active investing but was the first to write a book for the average investor. His advise and counsel are outstanding. In fact he has been called by the current administration to establish criteria for self funded social security investing. The book is a basic tutorial every investor should have on his bookshelf.
   
   Piscaqua Research in a study covering the period 1987-96 found that only 10 out of 145 major pension funds, or just seven percent, out performed a portfolio consisting of a simple 60%/40% mix of the S&P 500 index and the Lehman Bond index respectively.
   
   Or is it logical I ask for you to believe that you can predict which actively managed funds will out perform, or are you overconfident of your skills? If you are trying to find the great fund managers who will out perform in the future ask yourself: what am I going to do differently in terms of identifying the future winning fund managers, than did the pension plans and their advisors? And if you are not going to something different what logic is there in playing a game at which others with superior resources have consistently failed?
   
   If you a really serious in finding an investment technique that will provide you with reasonable return with less risk I suggest the following little book. This is a little book that I have written and contains the essential of how to invest. Just click on the title to find the book.
   
   
   The book is titled How to Make Money in the Stock Market-Buy 2,500 different stocks for $1000 - Pay no Commission. Easy to read packed with precise directions for success. A cookbook for the investor just follow directions. I enjoyed this book a great deal. It shows how indexing and diversification strategies work and why they are so important to investing success. Unlike many other books, this one is not only informative, but also useful. There should be no question as how to implement the author's strategy and measure your progress. He skillfully addresses asset allocation, and shows how to minimize tax consequences by assigning securities to tax deferred accounts. The author does not dwell on lengthy longwinded discussions but cuts to the quick with useful recommendation and directions for the novice and experienced investor as well. I recommend this book for all investors.Just click on the underlined title to go to the reviews of the book.The author answers all yiur questions by Email within 24 hours.How to Make Money in the Stock Market-Buy 2,500 Different Stocks-Pay no Commission



2. Ellis manages an active fund, which completely goes against the premise of his book. If he truley believes what he wrote, he would act accordingly. However, that isn't why I gave the book 2 stars. I gave the book 2 stars because it is basically a 2-3 page paper expanded to be a full book by using fillers. There is one simple concept, and it doesn't take an entire book to get across.



3. This book gives a further mesage than "buy an index fund". It gives the reader a pragmatic view of investing. The message should be this "Investor know yourself and the scenario where your playing, then act consecuently". Investing is a serious activity and should be taken seriously. Too many traps are set for those who take it as game and too many avoidable dissapointments take place. This book is a great book and a must read for anybody, particularly for those who want to invest their money. For those who may want further reading I would encourage them to read Wealth: Grow It, Protect It, Spend It, and Share It (Paperback) (Wharton School Publishing Paperbacks) and The Little Book of Common Sense Investing: The Only Way to Guarantee Your Fair Share of Stock Market Returns (Little Book Big Profits), they're both easy to read and will give you further knowledge of how seriously investing is.



4. An advanced look at how to invest in the markets. This is a must-read for all investors looking to get a deeper understanding of making money in stocks.



5. Ellis exposes the money managers who claim they can buy a security for you cheap, let it rise up, and then sell just before it drops. The real truth that Ellis lets us in on is that these people don't know anymore than anyone else, and what REALLY effects the markets are random events that nobody can predict. He also shows that the money managers really only make money buy churning transactions, no matter how high or low a security is. He returns us to finance 101 that tells us MARKETS are efficient, trying to time the market is not.

5 comments about Active Value Investing: Making Money in Range-Bound Markets (Wiley Finance).

1. One of my only posts because few are so bad that they compel me to write a review.
   
   This is easily the worst book on investing I've ever read. I actually experienced a sense of agony in reading this book knowing I could be reading something better. It should not even be called a value investing book.
   The author suggests finding companies that have low P/E's, that are fundamentally sound. He gives a very brief, useless description of what soundness is and is not. In fact his method for determining a stock's value as a whole is very shallow. I felt like he is just a journalist describing the surface of things. He mentions nothing of where to find a companies fundamentals, but briefly describes how they should look "strong, good, upward-trending", etc.
   
   The worst of all is that I have a firm suspicion the he had his close friends and colleagues give him such high reviews. For example take a look at all the reviews. Most read just like the editors review of the book. Very long and touting promise. Next he gave the book to several of the reviewers and asked them to review it. They actually mention that in their reviews. The result being that all the longer reviews sound the same as if he gave them some press release to put their own spin on without reading the book. And lastly, a good number of reviewers come from the city where he teaches at, Denver. Most likely associates of some sort just doing him a favor.
   If you think that unlikely, Google the book. You'll find the same reviews of the book from Amazon on other investors websites.
   
   Bottom line. Don't buy this book. I'll be putting mine on here for .01 cent if you really must have it.



2. The beginning of this book explores the idea of a "range bound market." We often forget that stock markets can go long periods of time without going up. One example of this is the range bound market from January 1966 until October of 1982, a period when the total return of the Dow was 0, despite rising and falling a lot within that period. Range bound markets often happen when, despite earnings growth, there is a P/E contraction. Katsenelson spends the first few chapters explaining range bound markets, and arguing that we are in, or about to enter one.
   
   The second part of the book looks at the QVG - quality, value, growth - framework for analyzing stocks. If you are already a student of value investing, most of this will be review for you. Katsenelson puts more value on growth than the average value investor, but I think that's fine, as it can result in stock picks that have an overall higher quality, instead of the kind Warren Buffett calls "cigarette butts," meaning they just have one good puff left.
   
   The third part of the book looks at investment strategy and covers the buy process, the sell process, and international investing. The best part about this book, in my opinion, is the chapter on the sell process. When to sell is a problem for many value investors, as so much of the educational material is focused on when to buy. Yet, it a proper decision making process for when to sell is important, because buy and hold can be a lousy strategy in range bound markets.
   
   The fourth and final section of the book has to do with risk and diversification. Like most value investors, Katsenelson is skeptical of beta, pointing out that risk really stems from ignorance. He advocates a small and focused portfolio that is large enough not to kill you if you make a bad decision, but small enough that you can really follow and continually analyze the companies you own.
   
   Overall, I think this book is one of the top 3 books on value investing that I have ever read. It's clear, a little bit humorous, and has excellent examples to reinforce the points made in the text. It will serve well as an intro to value investing, or as a more in-depth study for the experienced value investor.



3. Mr. Katsenelson makes a compelling argument that the next 10 to 15 years will resemble the bear market of 1967-1982, when the Dow traded at or around 1,000 for 15 straight years. Though a sideways market poses challenges to every investor, Vitaliy presents a clear and concise method to profiting in such turmoil. Investors new and experienced, will be smarter for having read this book. This is a truly unique viewpoint of a lesser documented branch of value investing.



4. Vitaliy's book is written in three sections: a background on range-bound markets, his active value investing strategy, and various bits of advice on applying his active value investing strategy. It's actually quite a friendly read and is something which any reader with a basic knowledge of investing terms (i.e. P/E, simple valuation, etc.) could make sense of this book and learn from it. Vitaliy's writing style is conversational and smooth though, at times, the book reads a bit too much like a one-way conversation and Vitaliy tries a little bit too hard to make pop culture references to illustrate his points. For example, there's one dubious paragraph in which Vitaliy attempts to use Steve Irwin's tragic death as an analogy for risk and risk management strategies.
   
   Despite any qualms I may have had about the writing or choice of anecdotes, the content of this book really shines. It elucidates many topics and investing lessons that most new investors have to learn about the hard way. Vitaliy's Active Value Investing strategy, while not necessarily novel, puts together many important lessons on investing in a very simple and understandable way through his QVG (Quality, Valuation, and Growth) framework. He discusses how to find strong companies (quality of the business and growth of its business) and hammers home the point that a good company does not necessarily mean a good stock (valuation). He even puts together a rigorous but easy to use valuation framework which he describes as his "absolute P/E model" which basically allows an investor to quickly create a target value for a company's stock based on the price to earnings multiple and some qualitative assessment of the company's business.
   
   Beyond putting together a quick and effective investment framework for investors, he also devotes the last third of the book to sharing with the reader a lot of his own thoughts on buying, holding, and selling stocks. These valuable lessons are priceless for anyone who are just starting off in investing. Probably the most refreshing chapter to see was a chapter on "selling" and how to develop a strong sell strategy. (Admittedly something I need to work on.)
   
   Honestly, these two portions of Vitaliy's book - his active value investing strategy and his various chapters on practical application - would probably be enough for a strong entry into a sea of investing books usually heavy on promises and light on actual content. Active Value Investing delivers even more. Vitaliy presents his case for Range-Bound Markets and presents some original research supporting this rather worrisome market phenomenon that he believes we are in the midst of. Basically, the idea is that markets typically have two long-term "trends" and they are not bull and bear. Instead, he believes there are bull markets (the last of which finished in 2000) and flat, range-bound markets. Between 1960 and 1980, major indexes moved up and down and up and down but over the entire twenty year period there was little or no appreciation in either the Dow Jones or the S&P 500. He believes that in 2000, we started yet another one. His chapters on range bound markets are interesting and provide some very enlightening analysis of the psychology which drives long-term trends in the markets.
   
   All-in-all, Active Value Investing: Making Money in Range-Bound Markets is an enlightening book for anyone starting out in investing which provides some great lessons that you don't often find in investing books more concerned with simply teaching do's an don'ts rather than the investing thought process. That being said, some of the writing can drag and Vitaliy's strategy may feel a bit "dumbed down" for more experienced investors.



5. Vitaliy Katsenelson's book is written in three sections: a background section, a section on active value investing strategy, and a section on applying his active value investing strategy. It's quite a friendly read which any reader with a basic knowledge of investing terms could make sense of and learn from it. The writing style is colloqial however, and the author uses pop culture references to illustrate his points. An example of bad taste is a paragraph that attempts to use Steve Irwin's tragic death as an analogy for risk and risk management strategies.
   
   Despite these qualms, the content of this book has shining moments. The Active Value Investing strategy, while not necessarily novel, puts together many important lessons on investing in a very simple and understandable way through his QVG (Quality, Valuation, and Growth) framework. The author uses simple metrics like "P/E" to build a framework for analysing companies. In view of the recent accounting irregularities associated with the "E" in P/E, however, this one dimentional metric may be too simplistic for anybody but the most novice investor. Still, it's a start.
   
   The last third of the book shares with the reader a lot of the author's own thoughts on buying, holding, and selling stocks. Probably the most interesting chapter to see was a chapter on "selling" and how to develop a strong sell strategy. (Useful for traveling salespeople)
   
   Two portions of Vitaliy's book - his active value investing strategy and his various chapters on practical application - would probably be enough for a strong entry into a sea of investing books usually heavy on promises and light on actual content. Basically, the author's idea is that markets typically have two long-term "trends" and they are not bull and bear. Instead, he believes there are bull markets (the last of which finished in 2000) and flat, range-bound markets. Between 1960 and 1980, major indexes moved up and down and up and down but over the entire twenty year period there was little or no appreciation in either the Dow Jones or the S&P 500. He believes that in 2000, we started yet another one. His chapters on range bound markets are interesting and provide some very enlightening analysis of the psychology which drives long-term trends in the markets.
   
   All-in-all, Active Value Investing: Making Money in Range-Bound Markets is an enlightening book for anyone starting out in investing. That said, some of the writing can drag and Vitaliy's strategy may feel a bit "dumbed down" for more experienced investors. Furthermore, statistically a passive index has been found to beat active investing around 60% of the time, going back to the turn of the last century. A better book on investing would be Jeremy J Siegel's "Stocks for the Long Run".

5 comments about Emerging Real Estate Markets: How to Find and Profit from Up-and-Coming Areas.

1. Being a full time investor myself - I am always reading other people's books to see if they have an angle to make a project more profitable or an idea that I have not used myself yet.
   
   In David Lindahl's book - I found that it had some good fundamental advice of what types of markets to invest in as well as leveraging other people's time so that you can focus on your own highest and most productive use of your own personal time. Being involved in many multi-unit investments myself - Dave did acknowledge and cover some of the largest pitfalls that one can get into with these large buildings.
   
   However, I did find it a bit discouraging that someone with so much experience is suggesting that complete novices purchase large multi-unit buildings to start with - especially since they have no experience with the fundamentals of investment real estate in the first place. Of which, Dave developed with his single family properties and then moved into larger units which gave him the knowledge based on previous experience.
   
   From Dave's perspective I can see how someone with his experience (starting with single family homes)- could view this today as easy and that even a beginer could do it.
   
   I honestly don't believe that most people - especially beginners, should buy such large complexes to start with. As profitable as they are for experienced investors, one needs to understand the basic fundamentals first. This sounds like the 'get rich quick' type of marketing to beginners that gets people into trouble very quickly.
   
   This book is best suited to someone who has previous experience and is looking to get into larger deals - not beginners. Even for the experienced investor - this book only covers the basics of multi-family investing and it not a technical book. It is more of a promotion for Dave's courses, which may be worth the investment for someone who already owns investment real estate and wants to get into bigger projects.



2. Awesome! Wish I had read and applied this book 2 years ago...before the market started its crash. As the owner (once proud) of 45 homes...some appreciated 100% in 2 years -- but due to market cycles -- now I am wishing I had a crystal ball. Well Dave gives you the understanding to have your own crystal ball!



3. This book is the BEST I have read in a very long time regarding market timing entrance and exit based on US geography. Dave is an "expert" investor that speaks with authority on the subject. As I read along I realized all the mistakes I have made over the years. If I only had this book 5 years ago! Great job Dave!



4. Several years ago David Lindahl was a eager young student of Marc Garrison the author of "Unlimited Real Estate Profit". David even appears on Marc's 21 DVD course. What David has done with his new book is to rip off Marc's work on emerging absorption markets. You should go to Marc's website narei.com to find out more. I would encourage you to read his website selection "The Fifth Migration" and "The Garrison Cycle". Marc started investing in 1978. His profit from his real estate paid for 2 undergraduate degrees, an MBA, then he started work on a Ph.D. in real estate economics. That academic study led him to an understanding of which markets to invest in, which ones to hold in, and which ones to sell in.
   
   I met Marc on one of his BuyingTours. Talk about fantastic. For the past 22 years Marc has knocked home run after home run in 18 new absorption markets. In July of 08 he will open up his 19th emerging absorption market. If you want to be sold / telemarketed contact David Lindahl.
   
   I far prefer Garrison's style - when you call you can talk with Marc if he is not busy. But, if he is busy he will personally call you back as soon as he can. I have studied under 7 or 8 Gurus to date. Marc is the only one that I have ever been able to personally talk with. Marc is a breath of fresh air in the sweat shop hard core telemarketed snake oil sales routine.



5. My god...I read entirely too much!! Now, I'm not going to lie to you and say that Dave doesn't plug his bootcamps and stuff however, I can honestly say he is the real deal. The dude knows his stuff!! I think the title, "Understanding Real Estate Market Cycles and How To Profit From Them", would have been a little better though.(but what do I know)
   Nonetheless, it's a great book and a good introduction to Dave and his methodology.
   Can you read his book and then go out there and do it? It depends truthfully. Are you the type of person that needs someone to hold their hand and walk them around the block to show them the scary spots....or are you the type that can realisticlly pull themselves up by their own bootstraps and is willing to stumble a little?
   Personally, I'm an active real estate investor in both SFR and multi-family units (duplex, tri, quads) and I still go to seminars and learn the ropes before venturing too far out.
   Hey...in a nutshell...BUY THE BOOK READ IT DO IT!! Geez, it's only $20 bucks.

5 comments about Futures & Options For Dummies (For Dummies (Business & Personal Finance)).

1. Helped pass the Series 3 license, and helps with understading the industry.



2. If you're new to options, this is _the_ book to start with. Surely, online resources are plentiful, but no single web site can give you all the information and explanations you need to really get a good grasp on whqat exactly might be happenning. I've already made some money in options but, believe it or not, I've made more in stocks because I didn't quite grasp how these things work. This said, if you understand options and have a good idea of how the underlying (stock) is going to perform you can see your option appreciate 20, 50, or even 100 plus percent in a very short time. This is the draw of options. The most important thing you need to know, however, and this is 'experience' speaking, is that you have to, i mean, have to reel in your money if you see so much as 5 or 10 cent markdown in the price of your option. Why? because, unlike stocks, you can always buy right back in if the thing does start going your way With stocks, you usually hold it until you see , say, an 8% depreciation in value. This is not true with options. If you have, say, ten contracts, you're leveraging 1000 shares. Thus, if your thing goes down 5 cents, you've lost 50 dollars; 10 cents, 100 dollars and this usually happens intra-day, within a few minutes. For this reason, options are classified as 'high risk', but it's only high risk if you're averse to gettting rid of them. Stocks might take 2 or 3 or 5 days or more to show such a drop; that's when you might sell. Oh, and one more thing...having the right software makes or breaks your trading. Schwab offers options, but not any kind of software that gives you all the information and tools you need. Check around; there's a few that offer killer stuff. Visit investools.com
   I hope this helps future traders but, if you must know, you gotta digest all the info in the options part if you're to get a grip on the thing.



3. I found the book way too cumbersome. The author tries to write about everything financial and as a result does it very poorly.
   
   I found the section on Options especially weak. He's taken a straight forward subject and made it seem more complicated.
   
   Pass on this one!



4. This isn't what you expect from the "For Dummies" series. Meaning you don't close the book feeling you can get started with confidence (unlike, say, Currency Trading for Dummies, after which you can do just that). Overall it's a useful primer but nothing more. Its strengths are some macroeconomic insights and occasional tips on how the big players play the game. It is average in terms of giving the basics on calls and puts and basic spreads, and it gives the usual overview of charting and technical analysis. The three main weaknesses are: 1) An overemphasis on using historical charts to show where you could have bought and sold based entirely on 20/20 hindsight; 2) Trying to cram in too many subjects in the second half of the book, offering brief intros with very few insights but what feels like at least 2 warning per page on "Don't forget there is risk involved" and "Moves can be huge and reversals are unexpected;" 3) An absence of an overview of the tools and software available. This last is the clincher why I gave it only 2 stars. Because trading in futures is considered the big league (and rightly so, because there IS huge risk involved), the best softwares cost money and are sold business to business. It is still not considered the realm of the burgeoning individual speculator. For internet software, well for any software, you need to have a simulation so you are expert in the workings of the software before trying to trade real time- imagine losing thousands of dollars because you don't understand how to correctly set up your spread in the software!
   If software does include a simulation package for evaluation, it is likely using simulated data. The better software packages that offer simulation for options will balk at futures and tell you you need to be approved for a futures account, in other words you need to commit before seeing it. This current grey area for individual speculation is to be expected, but that's why I bought the book, hoping it would bridge those gaps. It did not.



5. I'm new to options so this seemed to be a good place to start and some of the information was helpful but when I found a glaring mistake on page 75 I lost faith in the book and won't finish it. An example is given of a covered call that is supposed to make $500 or 10% but it actually looses you money with commissions..Read at you own risk

5 comments about Trade What You See: How To Profit from Pattern Recognition (Wiley Trading).

1. This book is one of the easiest reading technical analysis books I've read. The book lays out a fairly simple mechanical system which can be implemented immediately to improve one's bottom line. I've been using the patterns and techniques in this book for a little over a month and it has helped me more than just about any other book out there. I now have a specific plan of action and rules to follow when I enter the market every day.
   
   I would say that the only area lacking in the book is the mental side of the equation. But this isn't a book on the psychology of trading. The psychology of trading is far too important to be covered in a chapter in a book on technical pattern recognition. Those looking for guidance on the psychological side of trading would do well to read books by Dr. Brett Steenbarger, and the first half of Trading Chaos by Dr. Bill Williams.
   
   I would say that reading the first half of Trading Chaos and then Trade What You See could be a real recipe for success for a lot of traders. Every trader has a different perspective and style, and every trader needs to find their own style. These two books fit my style best and I think they could help others as well.



2. Should be used by Advanced Traders...Also if you like to use triangules and Fibonnacci as tolls for trading decisions.



3. Respect to the author, but a lot of this material can be found on the internet already, such as the AB=CD and Gartley patterns. For a book about visual pattern recognitions, the b/w blurry charts were a disappointment. Authors take note, shell extra for some color and larger charts will convey more than words, it would become a bestseller fast. Still, I've timed some profitable options trades using the geometric patterns.
   A Pesavento must have book is Astro Cycles...if you are ready for it



4. I am new to the world of trading, and I have already read many books, seen seminars, etc.
   
   Out of everything I have read, this book is not only the most practical and objective, but it also includes many poignant examples of both successful and failed trades. The patterns in this book are consistent and all build from Fibonacci ratios as well as the classic AB=CD pattern.
   
   I cannot recommend this book enough. Out of every trading book I have, this is my favorite. It is well worth the money.
   
   One note: it does take a little time to break into at first. I don't know that the opening of the book eases the reader into it, but if you get frustrated just skim the Fibonacci parts and go into the AB=CD pattern. It gets clearer from there.
   
   One of my favorite books!!



5. Great Book on simple TA... It was not what I expected but a cool book..

5 comments about The Successful Investor: What 80 Million People Need to Know to Invest Profitably and Avoid Big Losses.

1. I believe every investor ought to read this book before putting any money in the market. If O'Neil's CANSLIM system is followed, it is IMPOSSIBLE to to lose money in the stock market!



2. William O' Neal has done an excellent job laying out for investors and stock traders the 5 steps to take for outstanding results. I have read Oneal's other books but this one really laid out his strategies in a very easy to understand format. Here are the 5 steps he puts forth:
   
   #1 Which way is the general market going? Only invest in bull markets, if the market is continually going down and has rallies that fail and fall again into lows. Stay away and safely in cash. Wait to enter when the market is clearly in an uptrend.
   
   #2 Use a simple 3 to 1 profit and loss percentage plan. By setting a 7% stop loss on all stocks, and capturing a 20% gain when you are right, you can be right on 33% of your stock picks and still be a profitable investor/trader. Of course this is the worst case scenario. The important thing is taking losses quickly and letting profits run to a reasonable place and then take them.
   
   #3 How to buy the very best stocks at the very best times. Buy stocks using the CAN-SLIM method for the fundamental value. (With current and 5 year earnings increases being the #1 measurement of valuation). Then buy them after they have reached there 52 week high, pulled back and resumed upwards after coming off new support levels.(Cup and handle chart pattern).
   
   #4 When to nail down your big profit. Sell a stock that has run up to a ridiculous price while it is still heading up. Do not try to call the top, these stocks pull back tremendously when they run out of buyers. The signs to sell include when it closes at the low for the day or fails to make new highs for a few days. (Railroad tracks on a chart).
   
   #5 Managing your portfolio for maximum gains and minimum losses. When it is time to realign your portfolio sell your losers and keep your winners. Diversifying is for people who do not know what they are doing, successful investors buy 4 to 10 stocks they are experts on and watch them closely. Only add a new one after you sell your biggest loser. Never buy more of a stock that is going down only increase position sizes on winners. Only buy the best stocks in an industry, stay away from stocks under $15 to $20 a share.
   
   Excellent book that belongs in every investors/traders library. William O'Neal belongs with other legendary traders he has done a great job of building on what others have learned. I predict it will be a classic one day.



3. I think IBD is worth every penny. You can do everything that the author says without using IBD (by using MSN, Yahoo etc) but if you don;t have time for that IBD is the way to go. I have been following many (not all, i don't like the idea of buying at market price) of the advices in this book and have bagged 30% return in the last year despite two nasty corrections. If you want to take one lesson from this book, it would be
   
   Buy high and sell higher in a bull market.



4. For once someone who knows what he is talking about. If you are serious about investing buy this book, you won't regret. In fact, it can be your only investment book. What I like is that the book clearly shows that there is no such thing as buy-and-hold investor. To me investor is a just trader who trades in a weekly timeframe.



5. William O'Neil, who started a successful financial paper known as Investors Business Daily, wrote How to Make Money in Stocks. Decade of research and critical thinking has helped O'Neil to create some very powerful ways of investing successfully.
   
   O'Neil's ideas aren't about getting rich quick. It takes time, study diligence and patience coupled with controlling ones emotions to become an excellent investor. The Successful Investor melds both the technical and fundamental aspects of investing with common sense. O'Neil uses a great number of charts throughout the book to explain concepts in detail.
   
   The Successful Investor provides strong basics to help the intermediate investor as well as the experienced investor. This book may not be right for a novice.
   
   Topics include Managing Your Portfolio: How to Buy the Very Best Stocks, When to Sell and Nail Down Your Big Profit While You Still Have It, Time-Proven Methods to Maximize Results and Minimize Losses and much more.
   
   I have read many books, magazines and articles on investing in stocks, bonds, mutual funds and more over the years. O'Neil's ideas are some of the most solid and consistent I have found to apply to the stock market. They are easy to read and understand the basic...but like anything worth while...it takes years to be good. I have read three of O'Neil's books and have found great ideas in all of them.
   
   The Re-Discovery of Common Sense: A Guide to: The Lost Art of Critical Thinking