5 comments about Hot Commodities: How Anyone Can Invest Profitably in the World's Best Market.

1. as always, Jim Rogers did it.
   I am writing down all the tips in this book. It is very useful for investment purpose. Thank you, Jim.



2. As a successful fundamentalist retired at 37 and traveled the world, Jim Rogers gives a solid recapitulation of commodities with enough facts to practically turn speculation into prescience. With charts and graphs he translates price movements through time and turns them ahead in the future with sense. The bullish rises and bearish declines are nicely justified in terms of supply and demand without neglecting China, Brazil and other large powers. Jim Rogers offers fresh economonic insight that cannot be passed.



3. An interesting read giving insight of a master investor in the domain he understands best. Many logical reasons for his argument for several commodities mentioned that has been a guide for my investments in the Indonesian stock market. Though not many mortals would have access nor capacity to have direct investment in the minerals and commodities mines and plantations as he advocates.



4. I almost gave this book 5 stars for the mere fact that Rogers' predictions have come true since the time the book was published. For example, gas and gold prices have increased dramatically, as predicted, since 2004. S&P has been mostly going sideways and Rogers' prediction of the housing meltdown was right on. From an investment standpoint, the book would have been more helpful 4 years ago than today. Nevertheless there is still a lot of value here. First, Rogers' writing is engaging and interesting. Second, he offers readers a different way of looking at the world which is valuable regardless of your investments. Finally, he claims that his ideas and predictions of rising commodity prices will continue at least to 2015, so there is plenty of time left to profit from his wisdom.
   
   This book is an introduction and individual investors will have to do a lot more research and thinking before they can actually implement Rogers' ideas. The author admits that point, himself. Furthermore he does not really tell readers a logical way of even trying to profit from rising commodities. He claims the best way is to buy commodities directly, but after reading the book I have little idea how to go about buying commodities for the long term. Futures allow investors to profit in the short term but if you believe that lead prices will peak in 2015 or so, how can you profit from that prediction? After all, prices are not predictable in the short term and an investor can get burned badly speculating in the commodities' futures. Oil has been rising in value steadily since the Iraq invasion but an investor could have still managed to lose money investing in oil futures. Need to research and read a lot more on the topic if your goal is to actually invest in commodities.



5. When Jim Rogers speaks, I listen; when he writes something, I read it. If you go back years and years and check out what Rogers anticipated and predicted, he's been consistently accurate. His perceptions, opinions, and predictions in the 1980s and 90s, were spot-on. With "Hot Commodities" he does it again in many areas: geopolitics, equities, bonds, current and future international political trends, commodities, and more. We are seeing what he's saying in this latest book unfold in front of our eyes, right now.
   
   "Hot Commodities" is a continuation of Roger's past works, obviously focusing on commodities. Chapters are organized well and categorized by topic, so you don't have to read the book from start to finish but can jump around from chapter to chapter to your liking.
   
   Hot Commodities starts off with the basics and eventually tells you how to find and choose a licensed trader and invest in commodities. The important questions are answered: what are commodities? Is investing in commodities right for you? Why is there a market for them? What variables (questions) do you ask about a commodity (e.g. sugar)? What questions do you need to ask yourself and a broker who's licensed in them. What kinds of accounts can you have? What is the commodity lingo (words) you should know? How do you learn to read the symbols on the ticker tape? All the answers for the beginner and more are in this book. He has a knack for explaining commodities to the layperson.
   
   You'll know what GH 355.5, WU 369, SN 725, and HOX 101 mean when you see them.
   
   Although past performance is not an adequate way to predict future behavior of a group of funds, the historical trends of commodities are noted.
   
   Also noted are some misconceptions about investing in commodities, and bad investor stories. Many people who got burned did so using margin, according to Rogers. Supply and demand are straightforward indicators. But he does note, an investor should know what they're doing and know if commodities are appropriate for one's personality and investing style.
   
   
   OIL:
   
   Now, talking about oil is the new fad on the mainstream media. Only because, gasoline prices are currently high enough for the public to whine about it. The possibility of rising gasoline/diesel/fuel prices has always existed and Rogers noted it years ago. The author believes that world oil production has peaked and the numbers on worldwide output of MBP (millions of barrels per day) reinforces this. The "new finds" and offshore drilling will only put drops of oil in the worldwide demand bucket.
   
   Rogers noted his own Commodity Index Fund only a couple of times and didn't push it, nor provide contact info for his fund. He doesn't try to sell it. (He doesn't need to.) He also listed other Commodity Index funds. This was professional and reinforces his credibility.
   
   
   
   CHINA IS ON THE UP-AND-UP, AND THE USA IS SLIDING DOWN:
   
   This is Roger's opinion and I agree with it. Rogers is still bullish on China for the short and long-term. In addition to rapid growth and hard-work he notes that before the Communist revolution in 1949 the Chinese had a merchant class that operated for centuries, unlike that of feudal Russia. Therefore, the merchant and trade knowledge base is already in China, obviously. The Chinese save on average 40% of their income, while Americans save an average of only 2%, and often spend more than they make. (American per capita savings was -2% recently.)
   
   China is the number #1 consumer of copper, steel, iron ore, soybeans and number #2 in oil and energy products. China is rising fast.
   
   The United States on the other hand, seems to be moving in the opposite direction. The US is the world's number #1 debtor with $9 Trillion in international IOUs. The US is living off of other people's money. Is anyone talking about this in the mainstream media? Politicians? Only a few are. Tying the Oil Bourse to the US dollar has propped the dollar up. The US dollar is now a declining currency holding little confidence of the world. Remember, when the American government borrows all of this money (via T-bills) it's backed by "faith in the American government." Not if the Fed has the Treasury Department keep printing money and providing Helicopter Bailouts. The M3 Money Supply is now secret. Economists can only guess how much money the US government prints.
   
   The Chapters:
   
   1. The Next New Thing Is - Things
   2. "But...."
   3. Stepping Up To Commodities
   4. Stepping Into The Commodities Markets
   5. Notes From the Wild, Wild, East
   6. Goodbye, Cheap Oil
   7. Gold - Mystique Vs. Fundamentals
   8. A Heavey Metal With Potential To Be A High Flyer (lead)
   9. Searching For The Next Suguar High
   10 Can Coffee Perk Up?
   
   Rogers is and has been one of the most successful investors in the world. He's often made successful personal and fund-managed investment decisions when digressing from the myopic tramped path of the sheep. As usual, the sheep that follow the herd discount and scrutinize Rogers when he just answers the questions they ask him. He makes hiw own decisions. And he proves to be right, time after time. Sheep follow fads and trends, with the most sheep piling on top of a bubble right at the top of it right before it bursts, as all bubbles do. The equity tech-stock bust, shifted the sheep into housing and REI. Now that the RE bubble has burst, some sheep are gravitating (although slowly) to what Rogers has been saying for years. Commodities is in a cyclical bull phase. He cites statistics, historical trends, and the current and future world climate to reinforce his points.
   
   Attention sheep: he's right again.

5 comments about Total Leadership: Be a Better Leader, Have a Richer Life.

1. I was a student of Prof Friedman's at Wharton and read this book as part of his seminar course in Total Leadership. Six months later, I now have a blueprint for pursuing career success while simultaneously improving my personal life. Since reading this book, I have improved my marriage, strengthened relationships with other family members, and recommitted myself to both community and fitness by running the 2008 Boston Marathon as a charity fundraiser.
   
   This is more than a great read. While the program requires a serious commitment to change, so too do Stew's concepts provide a sustainable framework for positive change across all aspects of life.



2. Stew's 'Total leadership' has had an incredible on my life. About a year ago, I sat for the first time and tried to figure out what I wanted in all aspects of my life. The journey has been eye-opening and very satisfying.
   
   I now often go back to my writings and experiments and update them as I go through life in a much more determined and deliberate way; trying to achieve what I want in each of the "4 domains".
   
   Thank you Stew for being such a mentor, be it in person or through your book.



3. 
   I wish this book had been available 20 years ago when I was a senior-level corporate executive, struggling without much success to balance everything in my life. At that time, I had a large corporate staff to supervise and was married and the father of four teenagers, three sons and a daughter. Moreover, I was actively involved in several non-profit organizations. Finally, whenever possible, I tried to "squeeze" into my already busy life a occasional round of golf, a visit to one of the local art museums, "going out" to see a film. What I should have done -- but failed to do -- is what Stewart Friedman recommends in this book: to reflect on and then explore (through a four-step process of discovery) the relative importance of four domains in my life (i.e. work, home, community, and self) and determine (a) whether or not the goals I was pursuing in each were in synch, (b) in synch with the other goals, and (c) and how satisfied I was with what was happening in each and all domains. That was then...
   
   Now, here's my take on a few of Friedman's key points.
   
   1. Most people (including business leaders) function in the aforementioned domains. Once each has been measured, he challenge is to make whatever modifications are necessary to establish and then sustain harmony between and among them. "The whole fits together elegantly."
   
   2. According to Friedman, "total" leaders possess great strength because they do what they love, drawing upon the resources of their entire (four-domain) life. By acting with authenticity, they are creating value for themselves, their families, their businesses, and their world. By acting with integrity, they satisfy their craving for a sense of connection, for coherence in disparate parts of their lives, and for the peace of mind that comes from strictly and consistently adhering to a code of values. Meanwhile, they "keep a results-driven focus while providing maximum flexibility (choice in how, when, and where things get done.) They have the courage to experiment with new arrangements and communications tools to better meet the expectations of people who depend on them."
   
   3. At the same time, a "total" leader does everything she or he can to help others (at work, at home, in the community and for themselves) to become aware of whatever changes may be necessary within her or his own domains; to have a sense of urgency about making those modifications; to decide to commit to appropriate action that will create for each a different, better future; to solve whatever problems encountered when pursuing the giving goals, meanwhile sustaining commitment despite any barriers, delays, distractions, etc. Total leaders also ensure that "people who depend on them" have the support and encouragement they may need by celebrating incremental successes while resisting "slippage."
   
   4. In Chapter 6, Friedman urges that those who aspire to become total leaders learn how to adapt to new circumstances with confidence to conduct several "design experiments" whose purpose is to increase the ability to be innovative with creative action. He identifies ten types such as "Appreciating and Caring" experiments that involve having fun with people, caring for others, and appreciating relationships. Daniel Goleman characterizes this as developing "emotional intelligence" and Friedman believes that it is very important in each of the four domains. Because each domain has different kinds of relationships, separate goals and strategies must be devised for nourishing ("humanizing") relationships in each.
   
   5. In the next chapter, Friedman offers sound advice on "how to get going and make something new stick" during what is necessarily a never-ending process of human development. Once again, he stresses the importance of achieving "four-way wins" in each domain by "jumping" into the hearts and minds of others. "The best experiments are those that don't just get the approval from all your stakeholders, but will genuinely benefit them by changing their worlds for the better...When you're trying to make something new happen, you've got to know what others care about, so that you can adjust your actions. And you've got to know whom they trust, so that you know who will listen to whom as you seek to exert influence."
   
   I can personally attest to the importance of each of these and Friedman's other key points. However, what he advocates is obviously much easier said than done. Consider the concept of "balance," of "integrating" what is most important in each of the four domains. Let's assume that someone achieves that. For most of us (including corporate CEOs), a proper balance on weekdays usually differs (sometimes) substantially from a proper balance during weekends. Moreover, obligations, objectives, and opportunities in the work domain, for example, change during the progression of a career. That is, our proper balances on weekdays and weekends frequently change, and that is also true of each of the other three domains. The key to effectively responding to these changes is to think and feel one's way through a four-step process.
   
   Of course, Friedman is fully aware of this. In fact, in the final chapter, he observes that total leadership "doesn't end with the implementation of your experiments. This is really just the beginning. Being a better leader and having a richer life is an ongoing search, which I hope you will be on for the rest of your life. As long as you continue practicing authenticity, integrity, and creativity, you will increase your chances of scoring four-way wins - performing better and finding satisfaction in your various domains."
   
   I presume to conclude this review with a personal note: After reading Friedman's book and before composing this review, I read The Last Lecture in which Randy Pausch (age 46) shares his thoughts and feelings as he awaits imminent death from pancreatic cancer. Actually, "awaits" is not the correct word because Pausch does everything he can to leave no "IOUs" behind for his beloved wife ("the woman of his dreams"), their three young children, other family members, friends, and associates. In his last lecture to his students at Carnegie-Mellon, he provides a "distillation" of how he felt about the end of his life. "It's not about how you achieve your dreams. It's about how you lead your life. If you lead your life the right way, the karma will take care of itself. The dreams will come to you." In my opinion, this is precisely the same message that Stewart Friedman communicates to his own students as they prepare for a career in business. The "total leader" is first and foremost a total person.



4. I took two intercontinental flights recently and took the time to go through the "Total Leadership" program. And, before I begin my review, I want to say that over the past ten years or so I've seen an absolute avalanche of "leadership" books come out - most of them gimmicky and useless. This is not one of them and in fact I believe the title may deter people from purchasing this; do not be one of them.
   
   "Total Leadership" is about finding your way when you have multiple responsibilities tugging you in different directions. Until now, I've often felt family pulling me one way, only to find the more time I spend with them the more I resent the time it takes away from work. Similarly, on business trips for example, I fight with feelings of guilt for being away from my family. And that's not to mention the the toll all of this takes on my health, when I'm too busy to exercise or just watch the game with friends. I'm here to say this book can help, like finding the long lost manual and finally figuring our how to do new things with a product, this book acts as a guide to finding a semblance of control in your life. It's not about sacrifice, and it's definitely not found in the idea of "balance", this book advocates a powerful third way: overlapping your domains and drawing boundaries.
   
   What makes this book especially effective are the exercises the author puts the reader through. The reader is asked to define the issue, starting with the multiple responsibilities and challenges s/he faces, then it moves on to defining your domains, where is it that you spend your time? Most of the readers (including myself) would find four areas: self, family, work and community. Then, with domains defined, you can identify stakeholders in each domain and begin the process of finding ways "to live your life in accord with what really matters to you." The reader is asked to discuss his/her vision for a future life (post-change) with trusted individuals s/he has previously identified. A particularly effective step is then speaking with others about living your life differently, such as: your boss, significant other and friends, and getting their opinion and feedback on your plan, and as difficult and challenging as this may be it ends up providing the most powerful incentive to change through accountability and stakeholder buy-in. In many cases, I found that as much as I was building bridges between domains in my life, I was also creating boundaries (for example, no longer do I check my blackberry or the Internet between the hours of 6pm - 9pm.) But some of the biggest changes are personal ones that are for me and my family, other readers will likely find similar decisions they make without necessarily sharing them.
   
   This book is not about easy decisions, or difficult ones, its about drilling down to what's most important in your life and building from there.
   
   Ultimately, this book is required reading once, in my opinion, you are put in a position of responsibility. It is effective in maintaining a mindset conducive to responsible living, it provides a non-cookie cutter approach and it creates change in your life through practical exercises.
   
   For these reasons, this reviewer highly recommends "Total Leadership."



5. Thank you Stew Friedman! This work is engaging, enlightening, and inspirational--giving us all insight into what it means to be a 'Total Leader.' It answers the fundamental question most people ask about how to integrate all of the various pieces of our lives. I especially enjoy hearing the stories of the Total Leadership participants, and how they've grown and are able to see the world in a different light after going through the program!
   
   I'm definitely sold on this Total Leadership Program! However, it is, not without constant work and reevaluation, as Friedman notes, that we can achieve both a meaningful and professionally successful life. I recommend this book to anyone, especially women and those in transition, as a useful guide about how to structure your life in a meaningful and productive way. It certainly helps me rethink the things that are important to me in my day to day life. :)

5 comments about The Essays of Warren Buffett : Lessons for Corporate America.

1. This collection is awesome, as every serious investor knows by now. Cunningham and Buffett just published a new edition in May 2008, The Essays of Warren Buffett: Lessons for Corporate America, Second Edition, which made its debut at the Berkshire Annual Meeting today. I've just skimmed through this "second edition," which is also on amazon at the foregoing link, and it is even more amazing! Fans will want to have copies of each in their libraries. The collections are the only complete statement of Buffett's business and investment philosophy--as he has explained it. They are expertly assembled by Cunningham.



2. I recently readed Buffet's biography where I firstly get a glance on his investment philosophy. Then I read this essays extracted from his Berkshire's annual reports to the shareholders and was delighted to find such a refreshing view on investment and business economics. His approach is simple and he share his views on common terms that an average person will understand.



3. What can I say except for the book is by god himself. It is an easy and interesting read. highly recommended to all those who want to get an idea on how to invest in stocks successfully!



4. The best book on investment ever. Had a lot of humour as well as a great education on investments. Very simple, easy to read and understand. It is also a combination of Fisher and Benjamin Graham.



5. This book provides such simple, common sense advice you read it and think to yourself: "I know that, so why don't I do it?" Distractions, impatience and emotions represent the three challenges most investors and managers will face on a regular basis, Warren Buffett seems to have a way of drilling down to what's most important in the decision making process, and he provides blazingly clear and simple insight on how to create superior value, both for your company and through your investments.

5 comments about The Little Book That Beats the Market (Little Books. Big Profits).

1. This little book is a complete gem. It gets it's message across in a clear and humorous manner, never dull. It is a quick and fun read, and also presents a solid investment strategy. He proposes an investing "magic formula" based on two factors: return on captal and earnings yield. Of course, you can measure these factors in different ways. This is a solid value investing strategy, and it's presented with convincing evidence of success.
   
   The measures chosen in the book are the following :
   
   For Return on Capital : EBIT/(Net Working Capital + Net Fixed Assets)
   
   This is chosen over the more commonly used ratios of return on equity (ROE) or return on assets (ROA). EBIT allows them to view and compare the operating earnings of different companies without the distortion s arising from differences in tax rates and debt levels. For each company, it was then possible to compare actual earnings from operations (EBIT) to the cost of the assets used to produce those earnings (tangible capital employed).
   
   Net Working Capital + Net Fixed Assets was used in place of total assets or equity because Net working capital has to fund it's receivables and inventory (excess cash not needed to conduct the business was excluded from the calculation) but does not have to lay out money for it's payables, as these are affectively an interest-free loan (short-term interest-bearing debt was excluded form current liabilities for this calculation). In addition to working capital requirements, a company must also fund the purchase of fixed assets necessary to conduct it's business, such as real estate, plant, and equipment. The depricated net cost of these fixed assets was then added to the net working capital requirements already calculated to arrive at an estimate for tangible capital employed.
   
   For Earnings Yield : EBIT / Enterprise Value
   
   Measured by calculating the ratio of pre-tax operating earnings (EBIT) to enterprise value (market value of equity* + net interest-bearing debt). This was used rather than the more common P/E or E/P for several reasons. The basic idea is to figure out how much a business earns relative to the purchase price of the business. Enterprise value used instead of merely the price of equity because enterprise value takes intoaccount both the price paid for an equity stake in a buisness as well as the debt financing used by a copay to help generate operating earnings.
   
   Near the end of the book, he promotes giving back some of what you have earned - something that greats like Warren Buffett practice. He's a good man, who has written a good book. He also says that if you are very comfortable with your choices, that five to seven stocks near the top of the screen are good enough to invest in - you don't need to choose 30 stocks as the magic formula espouses. He has built a nice screening site specifically tailored to the formula - magicformulainvesting.com
   
   With other general screening tools and sites, you can use ROA minimum at 25%. From that result, screen for lowest P/E ratios. Eliminate all utility and financial stocks. Eliminate all foreign companies from the list. Remove all stocks with less than P/E of 5 (indicates the previous year being unusual in some way.)
   
   This one can be read in a day or two easily (I read it twice in three days). It's a good one to add to your collection at home, or just check it out from the local library, which is what I did. I love books that have high value / time read ratio - and this was one of those books.



2. The Little Book That Beats The Market is a great starting point for those interested in value investing. It's especially relevant for beginners. Greenblatt clearly and simply explains what makes a stock a good value investment, and the core theory of "buying great companies at low prices" is a simple definition of value investment. For beginners, following the strategy outlined in the book should offer excellent investment returns.
   
   For more experienced investors, the "Magic Formula" makes a great initial screen. Using the "Magic Formula" results, you have a list of promising investments to research. In fact, there are websites like [...] that attempt to do just that.
   
   A short, fun, and profitable read for beginners or experienced investors, I highly recommend this book.



3. As someone who is not in the real savy in business and has little to no financial advisory background- this book is right up your alley if you just don't understand the complexity of the stock market but are still interested in investing.
   
   My brother is a financial analyst for a fortune 500 company and could not get me to understand the stock market and mutual funds etc- for the life of him! He read this book and then forced me to read it as well. I am glad I did because it was easy to follow and made me excited about investing my money into avenues that will provide much higher yields that 5 to 8% a year.
   
   The author wrote this book for his middle school children to help them understand investing in the adult world so to speak- Well he did a phenomenal job and published it for the rest of us-
   
   A good pick for beginner investors or people who would like to invest their money in stocks and funds with little background in the field. This would also be a good "starter" book for someone who wants to get into the stock market.



4. Very insightful, and excellently written. Despite the name this is not another shallow book, full of cliches and nothings. In a really entertaining fashion Greenblatt explains in very simple easy to understand illustrations, what stocks are, how they are traded and the basic principles of the stock market and market fluctuations. He then builds on these principles to teach the fundementals of wealth building that most successful investors utilize. Alot of basic principles that somehow a lot of smart investors forget. Great reading for the experienced, and novice alike! This book should really be required reading in high school and/or college.



5. I read every chapter of this book while at Borders except the last one, so I cannot vouch for the effectiveness of the "Magic Formula" website that seems to generate so much controversy. I can, however, clarify a glaring misconception in what Goldblatt wrote in his book.
   
   Contrary to what many of the reviewers wrote (especially the negative reviewers), Goldblatt was not insisting that people focus only on Return on Assets and P/E ratio. Goldblatt was also not insisting on a definition of "capital" (within his concept of "return on capital")that leads to an over-emphasis on services over manufacturing. He illustrated perfectly his two pieces of investment data in the following ways:
   
   First, Return on Capital can be best interpreted as a return on invested capital. If it costs $1 million to build a retail store and that store, within a year, generates $2 million, then the ROC is 100%.
   
   Second, his other measure is really a profit-yield per share. You get this measure by taking the amount of profit generated by a firm, dividing it by the number of shares outstanding, and then dividing that by the share price times 100. So, if a company has a $1 million profit and it's selling a million shares for $10 a share, then the profit-yield per share is 10%.
   
   These two concepts seem to form the core of value investing in that they discipline a person to invest in the market as if they were buying a business or a partnership share in the business. The relevant question in any such investment is always "how much will my partnership share make?"
   All other factors are just risk management.
   
   The trick is finding data to generate these statistics. I don't know how well Goldblatt's website does that.

5 comments about The Four Pillars of Investing: Lessons for Building a Winning Portfolio.

1. Dr.Bernstein's writing style is easy to read and understand, it's well written and I could'nt put the book down after reading the first couple of pages...this book is all you need to know as far as I'am concerned, if you want the honest truth about investing the right way. I made huge mistakes in investing my hard earned cash prior to reading this book. Don't make the same stupid mistakes I did!...read this book first,before you pull the trigger(actually invest), so to speak...believe me, it's wiser to do so. I'am following and still to this day, refer back to this book's content, and there's not a day that goes by that I ever regret implementing the valuable lessons contained within.....Wall street's vast media is driven by "financial porn" and it's actually entertaining, in a humorous way, to see these so-called professionals act like they know which way the markets are headed. But like astrology, it's not worth taking seriously....Don't lose!, read this book.



2. I have read a ton of financial books and this has been one of my favorites. What's great about it is that it's not just "another" book that says all of the sames things ... in fact, it is very different from many books that you'll read on this topic. The author backs up everything he states with historical data and his reasoning for future projections. I'm not going to immediately change my portfolio based on this book, but the author did give me a lot to think about and referenced several other books that I am reading now.



3. Bernstein has endowed individual investors with the most important fundamentals of investing, weaving together the theory, history, psychology and business of investing into a gem of understandable language for mere mortals. I recommend this book often to my clients and encourage anyone who is serious about investing their money successfully to read this book before allocating a penny to any investment.



4. Book goes through the history of investing. It gets quite technical and at times very difficult to follow, only really in one chapter where he discusses what affects stock prices. And rereading it helps out. As the author suggests though, just read a little bit at a time. It's a lot of material to digest. But overall it discusses the advantages of using index funds and the need to diversify. I feel that the book speaks the truth regarding investing and everybody should at least be familiar with the concepts discussed in the book.



5. In the introduction to his book, "The Four Pillars of Investing: Lessons for Building a Winning Portfolio," Dr. William Bernstein states that the "competent investor never stops learning." Yet, because the world of investing can be such a confusing place, it sometimes seems that the more you learn, the more confused you get. As a participant on the Bogleheads message board, I feel I am an educated investor but still I often get lost after reading all the different debates: Should I invest in total markets or slice and dice my portfolio? Should I invest all my money at once or adopt a dollar cost averaging philosophy? How much foreign exposure should I have? Is now the right time to buy REITs, or do I need them at all? One day, while perusing the message board and sifting through some of these same questions, I found a suggested investing reading list, and this book was listed as the starting point. In this straightforward book, explained with easy-to-understand examples, Dr. Bernstein provides a solid framework for investors to begin to answer some of these questions.
   
   In setting this framework, Dr. Bernstein introduces readers to four basic concepts, or what he terms the four pillars of investing: the theory, history, psychology, and business of investing. The first pillar, the theory of investing, gets most of his attention, as it comprises the first 100 pages of the book and explains how the bond and stock markets work. In this section, Dr. Bernstein emphasizes what he calls the "most important concept in finance" - the relationship between risk and reward. If investors want high returns, they must take great risks. Following this logic, Dr. Bernstein makes some conclusions that may seem foreign to most investors. For example, the best time to invest is not when things are going well, but when they are going poorly. Those who invest during a bubble are not taking a risk and therefore can expect low returns, whereas those investing during a bear market are taking a risk and therefore can expect (but will not be guaranteed) higher returns. Similarly, those who invest in "good companies" like Wal-Mart can expect lower returns than those who invest in "bad companies" like K-Mart, because good companies, with low risk, are generally bad stocks, while bad companies are generally good stocks. This idea - that high returns cannot be achieved without significant risk - is the key concept Dr. Bernstein continues to emphasize throughout the book.
   
   While the first pillar gets the most attention, Dr. Bernstein terms the second pillar, the history of investing, as "the one that causes the most damage" to investors. What separates the professional investor from the amateur investor is that the professional recognizes that bear markets are a fact of life - they inevitably come about once every generation, usually sparked by a new technological advance. Professional investors stay the course and don't panic; they have a plan and stick with it. In fact, for beginning investors, a bear market is a blessing, allowing them to accumulate stocks at low prices. This concept again ties to the relationship between risk and return: throughout history, in times of great optimism, when prices are the highest and the risk is the lowest, future returns are the lowest, and when times look the bleakest, and risk is the highest, future returns are also the highest.
   
   In the third pillar, the psychology of investing, this relationship between risk and return is again raised. Most investors follow conventional wisdom of the time, investing in specific stocks or asset classes that are currently the most successful and thus buying at high prices. Dr. Bernstein provides two strategies to counter this psychology. He advises readers first to identify the conventional wisdom of the time and do the exact opposite. He also advises readers that assets with the highest future returns tend to be the ones that are currently most unpopular. The investor that is able to go against the flow - to stick with unpopular asset classes and pay attention to his or her entire portfolio return - in the long-run will be the most successful.
   
   Finally, the fourth pillar concerns the business of investing, which details how brokers, analysts, and the media work together to make money at the expense of often ignorant investors by peddling bad or biased information. Instead of paying exorbitant fees to brokerage firms or financial advisors, which steer investors to underperforming managed funds, investors can buy low-expense index funds through companies like Vanguard and thus tap "into the most powerful intelligence in the world of finance" - the market itself, which is, according to Dr. Bernstein, the best advisor available.
   
   Dr. Bernstein concludes his book by applying lessons learned from these four pillars and giving readers practical advice for how to construct their own portfolios. Although this section fell short of answering all my questions, the book as a whole serves as an essential investing guide in providing investors with a basic framework to use in evaluating the myriad of investing choices available. As even Dr. Bernstein concedes, "Four Pillars of Investing" is not an all-encompassing book on investing. It is not the only book you will need to read, and it is probably not the first investing book you should read, but it is nonetheless a book every investor should read.

5 comments about Jim Cramer's Mad Money: Watch TV, Get Rich.

1. His advice may not always be sound, but I credit his odd humor and enthusiasm for getting me into the stock market. I have bought and read all of his books. I like all of his books. Read his books, watch his shows, and do some research online and you'll get a pretty good idea of how the market operates.



2. Jim Cramer's Mad Money: Watch TV, Get RichThis is one very good book. A must read.



3. I found this book to be a a very effective and efficient way to understand stock fundamentals/technicals and learning the investing philosophies of common fund managers and analyists. Jim does a great job of explaining in "plain English laymen's terms" concepts like P/E ratios, balance sheets, cash flow statements, PEG ratios, sector analysis, sub-sectors, industries, business cycles, etc etc. Learning these fundamental concepts will do amazing things to help the average small investor do better in his/her investments. If you want to learn the technical skill of stock selection, read the book and be prepared to take notes and re-read sections to soak-in the concepts. It's not casual-reading, it's a course. Cheers to Jim for adding his great personality while discussing a deep and complicated subject.



4. Jim Cramer's Mad Money: Watch TV, Get Rich
   I have read his first book, Sane investing in and insane world, and learned a TON;..this is better, updated more for todays markets. The third book, goes on to holding on to what you have and it's really practical info. I think he's good if not a genius in his field. Just does what he preaches, homework...Rose Germaine



5. Jim Cramer has allowed me to have peace of mind about my small investments. I am 77 and have not known who to believein this trepid market; however, I have found him to be straight forward, honest and dedicated to help the little investor. I have read all his books and watch his program. I wouldn't consider a move without him. Right now he is advising me to sit still and believe you me, I am following Jim Cramer's advice.
   Love ya',
   Peggy Wildman
   Dallas, Texas 75205

5 comments about Way of the Turtle: The Secret Methods that Turned Ordinary People into Legendary Traders.

1. This is an important book because unlike the dozens of other trading books I have read this one delves into the most important aspect of trading, psychology. You can't trade if you can't attune your mind to the mental requirements of trading. I have seen other traders make reference to emotional state management etc... but Curtis really goes into all the psychological issues that most people struggle against when trying to trade successfully, recommended.



2. Faith has taken some flack of late from guys like Michael Covel, but he is an extremely sharp guy and the book is full of valuable insights. If you're a mechanical systems trader it's required reading.
   
   Well thought out, logically presented, well reasoned arguments provide development methods and set realistic expectations for the aspiring or veteran systems trader.



3. An interesting text from a historical perspective, but light on the implementation details if that is what you are looking for.



4. I was soooo excited to read this book. Here is a trading legend what wants to spill the beans on how he did it, right? WRONG. This book simply rehashed old trading ideas, some are very old, that have been done in other forums and books over the years. He plugged his own software so many times that the book read like an advertisement for his it.
   
   I found it interesting that he did not reveal anything that was going on with his current trading. I've heard all of the stories of the Turtle days; show me what you have done since. Tell me about the big trends you hit in the 1990's and earlier this decade. That would be fantastic - but he didn't. It would have added substance to the book.
   
   Instead the author tells you he hasn't traded since the 1980s and has worked on other adventures. I find this hard to believe. How can the most successful trader of the Turtle class not trade? You have been given the gift of a wonderful education by Richard Dennis and you don't use it? Come on - this is too much to believe. Certainly you have traded right?
   
   It was disappointing to say the least. A book written for a publishing advance is my opinion. It could have been much better. The author could have included details on the behind the scenes. Faith had access to the most noted trader in Chicago. Talk about what he was like and what the office was like. Talk about trades you have made since the 1980s and talk about the profits you made for other customers - not just Dennis - since the experiment was over. This would make the book better.
   
   Provide more details on what you did with the information and how it changed your life. What is what the title implies 'Way of the Turtle'. The book is nothing more than a technical indicator book, something we have all done and seen many times before. I was very disappointed.
   
   I struggled with giving one or two stars on this one. Part of me feels he deserves one star because the book was soooo bad. However, I posted two stars. He is a new author so I won't penalize him for so many oversights on the first attempt. Call it grading on the curve.



5. Takes a long time to get to the meat, but I suppose it is a necessary developement of understanding the meat to have this outline. Will be reading a second time.

5 comments about Currency Trading For Dummies (For Dummies (Business & Personal Finance)).

1. Overall, I thought this book gives a great overview on how and when the Interbank FX market operates, a basic overview of technical analysis, and some useful tips on practical matters of trading like how to choose a broker/platform and what to consider when setting up a trade. Having traded the Forex market for over 2 years now and having read a number of books specific to Forex trading, I think this book is the best book geared toward novice traders currently available.
   
   However, I felt this book could have done better in a few areas: it walks you through considerations to construct a trading plan but doesn't provide a detailed example of one (preferably the authors'). This book actually walks through a trade set up (shorting the USD/JPY) and details the things to consider, but it was picked seemingly at random (based on a double doji) and not from some back tested trading methodology. Also not covered in the book are tools to effectively back test strategies and what a sample trading journal should look like.
   
   But like I said at the beginning, this book is a lot better than most of the other FX trading books you find on retail book stores/sites--books that are filled with marketing fluff and little practical guidelines to actual trading. Currency Trading for Dummies actually has a lot of substance and value for the novice trader.



2. The authors provide a great overview of trading in the Forex market, and I would definitely recommend it to anyone new to the field (like me). It provides enough education to get you motivated to get started, and helps you decide what specific topics you'd like to research further. Read this book first before making any other purchase on the topic.



3. Far better for someone starting in currency trading than other, more expensive books. Especially since this one does not try to sell you on the authors' system at $100 per month!



4. this book explain what currency exchange is. it also does not get into detail of how to read a currency charts.



5. Cheap, easily read, more thorough than any other introduction I've seen. Not the last book you'll ever need, but definitely the best choice for your first. Everybody says to pair it with technical analysis for dummies, but nobody mentions economics for dummies. By all means get all 3, but if you only want 2 go with economics for dummies. It will leave you much more enlightened about fundementals than Technical Analysis for dummies will do for you with technicals. And unless you're going to go all the way with TA, don't go there at all. You're better off just trading news.

5 comments about Smart Women Finish Rich: 9 Steps to Achieving Financial Security and Funding Your Dreams (Revised Edition).

1. Love all his books - bought this, gave it someone and had to buy it again. It all depends what level you are on. Not too much non-common sense, but good for women to read.



2. You don't have to be a rocket scientist to become wealthy and this book details how easy it can be. If you're looking for glitz and glamour and "get rich quick" this isn't it. There's no such thing as an overnight success. Read David's book and get going on the road to wealth.



3. Smart Women Finish Rich is a bit different from other financial books I've read. I have to admit I was surprised with how well David Bach addressed both the emotional and intellectual relationship women have with money. His grandmother taught him well.
   
   I am going to say that Smart Women Finish Rich is more for a financial beginner than a woman with financial savvy. It's a well thought out system of gaining and keeping control of your financial self-sufficiency. Bach has filled this book with definitions, resources, quizzes, systems, exercises and tables. I was impressed and give it a must read if you're serious about becoming more financially organized.
   
   David Bach addresses both the heart and the head in Smart Women Finish Rich. He used the lessons he learned from his grandmother, and his mother, as inspiration. After growing up with two such powerful role models, he was surprised by the number of financially uniformed women. Many of the women who came to him for financial advice, had no clue about building financial security.
   
   Smart Women Finish Rich is easy to understand. I read it and "got it." This is a "how to" book that involves a commitment on your part to read, work and put the assignments and lessons into daily practice. Bach has carefully given us valuable financial keys, now it's up to us to follow through.
   
   What you'll get out of this book is going to depend on what you're willing to put into it. It's a book that has the potential to give you a great foundation for financial self-sufficiency.
   
   Here are some of the areas I found particularly useful:
   
   1.The first exercise, "Financial Knowledge Quiz" is a great practical place to start. I found it to be thoughtful and quite an eye-opener. I learned about how well (and sometimes not so well) I understood the role money played in my life.
   
   2. David Bach is adamant about pinpointing the reason money is important to you. To find this out, you'll need to examine your money values and ask yourself if your financial behavior matches those values. He provides a simple but thoughtful exercise called the "Values Ladder."
   
   3. Smart Women Finish Rich is a great blend of exercises, systems, quizzes and practical "real world" information. For example, the "Finish Rich File Folder System" is a simple, easy-to-follow and yet an organizational time saver.
   
   I definitely give Smart Women Finish Rich five stars! If you're ready and serious about getting your financial house and monetary priorities in order, this is the book for you!



4. I bought this book because I heard so many positive things about it. I am in my 50's, five years ago I went from having the wonderful life that all women dream of. I had the beautiful home in the suburbs, 2 beautiful children, friends, you name it I had it. Then I lost it all in the blink of an eye. I had relied on my husband to handle all the finances I couldn't tell you the balance in the check book. All I knew was he made the money and I spent it. Thank the Lord I was a RN, but I hadn't worked in quite a few years. I am not going to go into detail what happened but when I said I had nothing but the clothes on my back I mean just that. I have been working two jobs for the past five years making good money but I have NOTHING to show for it. By reading Suze book I was able to identify myself, it is so easy to understand that someone like myself with NO understanding of finance can take her suggestions and work them into my present life. It is going to take discipline on my part and learning to say NO to my children is going to be the hardest. But, I need to take care of myself. This book was just what I needed to read. I highlighted areas, I keep going back and re-reading certain sections. I keep it next to my bed. Buying this book was one of the best things I have done for myself.



5. I think all women should read this book and share it with others (family and children). Not only does Mr. Bach discuss how saving a little here and there can help with retirement, but he also gives women inspiration to live out (and especially to finance) their dreams. A wonderful book.

5 comments about Home Buying For Dummies, 3rd edition.

1. This book goes without saying that it covers all the basics and provides additional information through web links. This is my 4th Dummy book and will continue to use it as a reference for many years to come! Easy read, funny at times without being to cheesy. Kudos to the authors again for another quality book!
   
   Read this book in any fashion you like and mark points down to inquire with Realtors, loan officer, appraisers and inspectors... You'll make some mad for being informed and catch others trying to lie or sugar coat it to you!



2. it is a must read if you are a first time home buyer. I knew what to ask, what to expect. I am not money savvy, but the morgage section is simple enough that I feel that helped me getting the best deal possible.



3. If you've never bought a home before, buy this book. It gives you a good overview of many areas of the homebuying process. If the thought of purchasing your first home is a bit daunting, educate yourself. This doesn't give you every single detail that you need to know, but it will help you ask informed questions and lead you on your way.



4. I recently ordered several mortgage books as learning and reference tools as I embark on my new career as a loan officer. I have not read any of the books from cover to cover, but they are serving me well for the purpose intended. The book arrived in a timely manner and in the condition described.



5. Full of interesting things about home buying. I wish that in some parts it would have gone more in depth. But in the end I felt like I learned a lot from this book.