5 comments about The Little Book That Makes You Rich: A Proven Market-Beating Formula for Growth Investing (Little Book, Big Profits).

1. this little book shoud have been less patronising The authors naivite on thinking his readers were going to be his extended children got him to writte a 101 of finances. No to useful for the prise.



2. Excellent explanation of the methods used to evaluate the financial strength of a business enterprise.



3. This book provided an excellent overview of successful growth investing; but, while providing broad strokes, the book seems primarily focused on selling further services from Mr. Navellier. I share Mr. Navellier's love of numbers, but I wish there were further information on the exact forumlas used so I could replicate the calculations on my own...unless he is personally screening each of the 5000 stocks each day.
   
   I tried to sign up for the given website and I have trial access, but have yet to receive credentials to sign on as a member--after two attempts and two weeks later. I have received all of the solicitations to purchase investing newletters though--from $200 to over $1000 per year or more.
   
   Mr. Navellier is one of the few investors who beats the S&P 500 according to the Hulbert Report, but what if I invested that $1000 per year instead of purchasing the newsletter? If I invest $1000 for 20 years at a growth of 12% a year, $20,000 becomes $90,000 in a no load index fund--discounting taxes and other fees...I feel free to discount as Mr. Navellier does it in his advertisements.
   
   The positives of the book are as follows:
   1. It gets you excited about returns
   2. It makes a good case for growth investing.
   3. It is well written.
   4. Mr. Navellier has demonstrated he is one of the few money managers to consistently beat the S&P 500
   
   The negatives:
   1. No exact way to replicate results on your own, you need the "free" website to do that.
   2. The constant reminders that Mr. Navellier's newsletters were successful, if only you had purchased one...



4. Very simple to understand and very straightforward. It helps an investor to understand he needs to remain cool, rely on facts and forget about emotions.



5. The book provides 8 clear ways to evaluate if you should buy a stock. These ideas are similar to William O'Neil or other investors, but overall good reminder as to what to look for. You can read this book in an hour. The only issue with this book is that you are basically buying and holding even when the market is down.
   
   Do you want to know what the Author is buying? Go to his web site at www.navellier.com where he manages funds. His model portfolio's are down, some over 20% ! Yes, the issue here like many people that manage funds or model portfolios is that they stay invested even in the worst times.
   
   Indicating what to buy is good as this book outlines, but having people hold on for a gut wrenching ride losing over 20% to wait YEARS to get it back to me is foolishness.
   
   What is missing in this book is an overall market viewpoint to answer the question "Should I be a buyer, selling short, or stay in cash?"
   
   This book does not answer that question. A great book that will and pointed to the down market in 2008 is the classic "Martin Zweig Winning on Wall Street." This book is a real winner and has a similar formula for picking stocks but you will get few results.
   
   I would take Navellier stock picking recommendations then be a buyer based on Zweig's marketing timing model. Why buy big in a down market? If you want a gut wrenching experience go to Cedar Point or 6 Flags.

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 The Pre-Foreclosure Property Investor's Kit: How to Make Money Buying Distressed Real Estate -- Before the Public Auction.

1. Very informative kit. Many people hear the word foreclosure or pre-foreclosure and automatically think, bargain or a steal or buying a home for dirt cheap; but there's a lot more to it than that and this book gives you a very good insight of how the process works. Buying distressed Real Estate can be time consuming, costly and a real challenge, as you will find out after reading this book.



2. I spent a weekend reading the book. Loved it. The author knows what he is talking about. He also has a good website where you can download the proper letter you should send out to people in distress.
   
   I own a foreclosure company and have adapted some of his techniques, nevertheless (not to take away any merit from the authorm but instead to enhance the next version of his book) our company principals felt like the letters were a little bit to hard on the person that is loosing their homes. And sometimes talking this hard to people could have negative consequences. We have to understand that these are individuals that when loosing their homes, can go into denial and sometimes enter into very heavy depression.
   
   If you do decide to get into this process of sending out letters the only thing you should try and add to them, is to let the people know that you are there because you really care to help them out and you are not there to make a quick buck! People will give you their homes if you are upfront, honest and ethic about what you are trying to do.
   
   Don't forget to add a little note written by hand thats tells the reader that you: "really care to help them!"
   
   Other than that, you should buy the book if you are into the business of Real Estate.



3. The information included in this book has made my job much easier and has expanded my knowledge base and expertise. The organization I have derived from it is most valuable.



4. The author claims that he is "[u]nlike 99 percent of all real estate authors in America . . .", because you can contact him directly via his personal business line and e-mail address. Neither is true!! The phone number,(813) 237-6267, listed in the book is no longer in service, and he does not answer e-mails(tjlucier@thomaslucier.com). Very tacky and unprofessional!!! Also, the the author will direct you to websites that do not provide the information he claims can be found there. It makes me wonder how reliable and credible the rest of the information in this book is.



5. This is an excellent book by Thomas as he thoroughly takes you through the process of purchasing an investment property. He provides a wealth of resources on nearly every aspect of investing by listing websites and addresses.
   
   His forms are great for providing you with an idea for approaching home owners. However, the tone of the letters are some what dismissive--but that's just my opinion.
   
   The only area that needs enhancing is providing one with an idea as to estimate value in the property. He does not provide as much detail as others (i.e., Steve Berges "The Complete Guide to Real Estate Finance for Investment Properties"). With that said, it is an excellent resource and I highly recommend it.

5 comments about The Little Book That Beats the Market (Little Book, 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.

1 comments about The Essays of Warren Buffett: Lessons for Corporate America, Second Edition.

1. This is the new edition of the classic original The Essays of Warren Buffett: Lessons for Corporate America, making its debut at Berkshire's 2008 Annual Meeting. I just skimmed this one and it is even more amazing than the original (which, as the reviews over there show, is also awesome).

5 comments about The Secrets of Economic Indicators: Hidden Clues to Future Economic Trends and Investment Opportunities, 2nd Edition.

1. For anyone interested in understanding the terminology behind the financial pages and Web periodicals, this book does its job. For many of the standard economic indicators, such as the consumer price index, personal income and spending, and the producer price index, its author discusses their importance, how they are calculated, and their impact on the bond, equity, and currency markets. His discussions are mostly qualitative, especially when assessing the impact of the indicators as "low", "medium", "high", and "very high." This was done no doubt to make the book appeal to a wider readership that does not have the mathematical preparation to delve into the topics from a more quantitative perspective. The discussion on the `yield curve' is very good, and in addition gives the reader insight into its status as one of the indicators that is not computed by governmental agencies. The author also gives a lengthy list of the best Websites to visit for discussions on both U.S. and international economic indicators.
   
   There are some omissions in the book whose inclusion would have been helpful, especially to those readers who are interested in the mortgage markets. The author does discuss the NAHB housing market index, construction spending, new home sales, and the NAR existing home sales, but discussions on the OHFEO house price index and the Case/Shiller house price index are omitted. These indices have become very important in recent months due to the turmoil in the mortgage markets, and they have appeared many times in newspapers throughout the world. There are also no discussions on the forecasting performance of the various indicators, again probably due to the goal of keeping the book length at a manageable level. For the index of leading economic indicators for example, the author could have discussed this briefly without getting into the deep technical details.



2. If you're an inspiring investor or seasoned pro; a corporate executive or fresh out of school Mr. Baumohl's "The Secrets of Economic Indicators: Hidden Clues to Future Economic Trends and Investment Opportunities" holds a wealth of information to assist in making good economic decisions.
   
   The book's structure begins with two chapters that provides the reader with a good introduction on how economic indicators help explain the workings of the world economy. Next the various indicators are organized by categories that allows to reader to find the exact information he or she needs. Also, Mr. Baumohl's writing style is accessible to readers without formal economic training.



3. This book does a great job of explaining a long list of macro-economic indicators, their application and relative predictive importance. Highly recommended for those who want to understand how economists measure and attempt to forecast the direction of economies around the world.



4. Very good book to get an idea about all the economic indicators that can make or break the economy.



5. This is an esaly introduction to economic indicators, mainly the american ones. It contains some interesting tips about indicators, like "thumb rules" in some cases. It briefly introduces each of the most important indicators to the US economy (as well to other major economies) and it's effects on the markets. Those interested in detailed information of some indicator will need to go deeper looking for it's original sources.

5 comments about Sell and Sell Short (Wiley Trading).

1. I have always considered Dr Alexander Elder as a writer par excellence as he gives a touch of humanness to the cold hard Technical Analysis. Maybe it is because of his background as a trained psychiatrist. It is often said that the entry is the easiest thing, but it is the exit that matters the most, because that defines the net outcome of the trade: whether it results in profit or loss. We give so much importance to entry and let our exits be governed by our emotions. There are plenty of books on perfect entry but very few which stress on a perfect exit. "Sell and Sell Short" is an attempt to bridge that gap and teach a trader how to sell profitably. The book is divided into two parts, i.e., Sell and Sell Short.
   By Sell he means booking profits on your existing trade or getting out with a minimal loss. Here Dr. Alexander outline various ways of how one can exit trades such as: selling at a target; selling on the stop; selling `engine noise' and so on. Segregating each chapter distinctly he moves from one topic to another outlining themes such as selling at the moving averages or envelopes or channels or resistance. Various techniques such as Iron Triangle, Market or Limit Orders have been explained while also elucidating on Hard and Soft Stops. A new concept introduced in this book called Volatility-Drop Trailing Stops gives one the direction of the trends without compromising on the locked profit. Dr. Alexander also teaches to take profits or exit trades in the event of weakening momentum. He outlines ways for discretionary exit from long term trade: How to sell before earnings report and how to sell using his favorite indicator, The New High-New Low Index.
   For newbie's like me who are the product of the current Bull Market, and haven't yet encountered the real Bear Market, the Sell Short section is a real delight as it outlines ways to short at tops and short at down trends or how to short fundamentals.
   Dr Alexander stresses the need for following strict money management rules and maintaining of good records. In fact he often stresses that show him a person with good records and he will show you a successful trader. It is a must read for those who want to become serious traders and make some intelligent trades... oops I mean Intelligent Exits!!!



2. Why the book's title? - Traders love to buy, but hate to plan when to sell. (Spontaneous selling in the heat of trading does NOT work out well.) Dr. Elder's new book has great ideas and examples of how to set stop-losses, how to define sell-targets, when to "cut-and-run" from a stale trade, and how to sell short. But there's much more to this succinct book.
   
   It's also a complete review of Dr. Elder's trading approach, as it has evolved over his career. More than a "cook-book", it's like being in the kitchen with Dr. Elder and his trader colleagues as they plan, implement and document a series of trades.
   
   His perennial themes are present: hope is not a strategy, so plan your trades; every trader must develop a style that suits his or her own personality; show me a trader who keeps good records, and I'll show you a good trader.
   
   These themes come alive in this new book, perhaps because they are spelled out so clearly and succinctly. They feel achievable.
   
   Of course, getting there is a process. I've studied Dr. Elder's books for 5 years, participated in his "webinars" and a week-long "traders camp". I'm here to say he's not peddling dreams (like so many trading "gurus") but offering up the tools he developed over 20+ years of becoming a top trader.
   
   Dr. Elder's new book has given me renewed energy to make changes and take my trading to the next level.



3. Determining when to sell or cover are the most difficult decisions I face when trading. Lacking a sound plan, I find myself relying on instinct and emotion, often to my detriment.
   
   In Sell and Sell Short, Dr. Alexander Elder--a trader, teacher, and practicing psychiatrist--addresses this issue. Not since Justin Mamis' When to Sell: Inside Strategies for Stock-Market Profits, has there been such a comprehensive discussion of the art of selling.
   
   Elder provides practical strategies. He discusses the selling process from a variety of angles: technical, fundamental, and psychological. Unlike Mamis, who during the period we were both employed by the same firm seemed to be a perpetual bear, Elder is disciplined and analytic in his approach.
   
   I found the chapters "Selling at a Target" and "Selling on a Stop" to be particularly insightful and provocative. Elder punctuates his thoughts with illustrative charts. They are both readable and printed in color. No doubt this adds to the book's expense, but the clarity they add more than compensates.
   
   Dr. Elder has penned some great books. Unfortunately in this one, he opted to include wholesale sections of them as adaptations. Reading this book is often like a W. E. B. Griffin novel, much time is spent re-hashing the past. This practice, no doubt, makes the author's job easier. Yet, the purchaser is left to question why he or she is paying for information that pads to the book's length and adds virtually nothing to the author's point.
   
   Despite its flaws, this book fills a gap in the literature of trading. It is well-written, skillfully edited and beautifully illustrated. Traders of all levels will benefit from its insights.



4. If you are searching around on Amazon for a book on trading stocks then look no further, this is it. I have been a successful trader for years and read over 85 books on trading, in my opinion this is the best. While as the title suggests it teaches when to sell your stocks for profits, and also does the best job I have seen on explaining short selling and when technical indicators show to short. This book is a complete book for any trader. The main lessons of this book is when to lock in profits and exit a trade using a target, and how to double your potential for profits by not only buying stocks but also selling stocks short and buying them back at a lower price for profit. Professionals sell short because while overall the stock market drifts upward, when a stock falls it falls over twice as fast as it rises. I sell short and it is a powerful tool when used correctly. This book will show you when it is appropriate to short.
   Dr. Alexander Elder is the only author I am aware of that integrates trading psychology, money management, and record keeping into one book. These three factors will determine whether you are successful in the market or not, even more than the trading method you choose.
   You will learn the three great divides in trading, technical vs. fundamental, trend vs. counter trend, and discretionary vs, systematic. The author follows a discretionary strong technical approach trading counter trend for the most part. However what you learn in this book can be applied to any type of trading. The authors own technical approach uses prices, volume, exponential moving averages (13 day, 26 day), envelopes, MACD, and force index. Limit your tools to no more than five, more is less, any more just causes confusion. The main method you will learn in this book is using the moving averages as a technical base for agreed upon value and buying at the lower edge of the envelope and selling at the high edge of the envelope when you have favorable MACD and force index agreement, or buying at value between the EXP MAs.
   If you are going to be a trader you must follow the money management suggestions in this book. NEVER risk more than 2% of your total equity on a trade, and if you lose 6% of your equity in a month you must stop, clear your head and start back next month. If you follow the 2% rule from the book, it will be a major life lesson in your trading and save you a ton of equity draw downs.
   Your long term success as a trader is determined by your ability to learn from your mistakes and not repeat them. The best way to do this is to keep detailed records on a spreadsheet and charts of each trade and a diary of why you traded. You must look squarely at each loss and win. If you learn from each bad trade and limit your loss to less than 2%, it can turn into a long term positive.
   This review only scratches the surface of this great book. It is packed with very helpful principles, real trades, humour, and is just outstanding. I really grew as a trader from reading and implementing Dr. Elder's best selling classics "Come into my trading room" and "Trading for a living", but in my opinion this one is the best, using exerpts from his past books to build an even more complete picture. If your dream is to trade for a living or just trade succesfully this is the book to buy.



5. His book and workbook is helping me to get to the next level. I am using both of his first books to make money and his latest book to help clarify where I went wrong. The chapters on Trading Psychology/Risk Management and keeping records are right on target to help traders make money.

5 comments about The Intelligent Portfolio: Practical Wisdom on Personal Investing from Financial Engines.

1. This book is authored by the chief investment officer of the web-based "Financial Engines" service. I have used "Financial Engines" in the past and wondered how they came up with their recommendations ... this book increases my respect for the service. The book appears to be written for the "intelligent layman" audience -- not an academic work but definitely requiring effort to get through. There's a tremendous amount of material on asset allocation, at a depth I have never seen before. It is devoid of math, but it still treats topics at considerable depth. Not a "pop lite" investment book. Professionals reviewing their 401k plans will benefit from it, as well as financial planners who want to deepen their knowledge of asset allocation methods for their clients.



2. This is a great book for anyone who wants to gain confidence in making their own investment decisions or anyone who just wants to be able to have a smarter discussion with their financial planner.
   
   Jones very effectively demystifies the rules of investing and stays focused on "what you need to know" to manage a retirement account or other personal investment account for the long term. He avoids chapters full of finance terms and discussion of investments that most of us shouldn't be investing in anyway. Instead, you get an engaging, smart book that you can read in a weekend that almost feels like sitting across the table and getting advice. He covers the subjects in just the right amount of depth-- you won't be left scratching your head, or feeling like you've once again been told "the rules" about things like diversification, but still don't know exactly what to do.
   
   You'll finish this book and feel a lot more confident about your money and have a much better perspective on market headlines. Would highly recommend this read.



3. In the crowded space of personal investment books, this one distinguishes itself with some unconventional and intriguing advice. Here are some highlights I found eye-opening:
   
   - Rebalancing is a bad idea! Rebalancing back to your 'target allocations' is effectively making a contrarian 'bet' that some assets have become overvalued and others undervalued. Such a bet against the market doesn't fit with the EMH.
   - Small/value tilt isn't worth it; Midcap growth may be better! This was a shocker, as almost every asset allocation book out there advises tilting toward small/value, in keeping with the Fama/French research. But if you believe that overall market risk is the only kind worth taking, then the only 'tilt' worth making is toward asset classes with high correlation to the market and higher volatility than the market (e.g., higher 'beta'). Which, as it turns out, is Midcap growth! (and smallcap growth too, to a lesser extent)
   - REITS, emerging markets, commodities -- not worth it. Again, some surprising advice. Emerging markets aren't well correlated with the overall market, so why bother with higher expenses when you can get your beta elsewhere? Ditto for REITs, which are really 1) a sector bet 2) a sector which is implicitly included in equities (all companies own real estate) and 3) a sector you're already overexposed to if you own a home. Finally, commodities -- I hardly need convincing there -- they're not a return-generating asset class at all.
   
   So what should you focus on? Expenses, for one! The author makes a powerful case for choosing your asset classes with full awareness of the expenses of each. Again, get your beta the cheapest way you can, even if it means dropping an asset class. The foregone diversification benefit pales in comparison to the difference in expenses, in most cases. The author demonstrates this numerically.
   
   Bottom line: this is probably the smartest book I've read in personal investing space. Although it's left me with plenty of questions to ponder, the final advice given is hard to beat.



4. We have used Financial Engines for tracking and planning since the initial article about it in Wall Street Journal many years ago. This book explains very clearly about how their data-based system actually works and the statistical information they use to make their recommendations. Very clear writing style and easy to read in several gulps. I have bought extra copies for my kids to use.



5. This book was well written and easy to read.
   
   The author makes the case that we would need about 1500 years of stock market return data to be able to predict stock market returns within +/- 1% with high confidence. Since we only have about 100 years of reliable data, we can predict within +/- 4% of the long term historical average. Over long 25 year time periods, stock market returns can vary by a factor of 6X or 6 times.
   
   The author discusses the current world asset allocation of about 63:37 stocks:bonds. Interestingly enough, this is not far from the age old pension plan asset allocation of 60:40. The ratio of U.S. to foreign stocks is also about 60:40.
   
   This author has a different opinion about periodically rebalancing a portfolio. He says rebalancing is really a market timing bet.........because you are betting against the consensus of market participants when the market asset allocation changes. He recommends rebalancing to changes in the over-all market allocation versus to a fixed stock:bond asset allocation ratio.
   
   While conducting research for Financial Engines, they found that investors preferred having risk expressed in dollars versus percentages or sigma.
   
   The author correctly focuses on using funds with low expenses, and he says most mutual funds have total expenses over 2% per year. He recommends adjusting your asset allocation around low expense funds...........if you are in a 401K with very limited choices. His work suggests that not investing in an asset class only costs you about 0.5% in return. If it costs you more than 1% in additional fees to get into a new asset class, then skip this asset class.
   
   The author suggests having a maximum of 10% invested in REITs. He argues that if you own your home, you probably have no need for REITs as a separate investment.
   
   The author also argues that commodities have a 0% expected return, so skip this asset class.
   
   Over-all, this book is easy to read with very sound advice for investors.
   
   
   Index Mutual Funds: How to Simplify Your Financial Life and Beat the Pro's
   The Richest Man in Babylon
   Bogle on Mutual Funds: New Perspectives for the Intelligent Investor
   The Millionaire Next Door
   The Four Pillars of Investing: Lessons for Building a Winning Portfolio
   A Random Walk Down Wall Street: The Time-Tested Strategy for Successful Investing, Ninth Edition
   The Coffeehouse Investor: How to Build Wealth, Ignore Wall Street, and Get On With Your Life
   The Bogleheads' Guide to Investing

5 comments about Real Estate Investing for Dummies.

1. This book is a great companion to other books of a more thoeretical nature. Many real estate books focus on why you should invest and the benefits of investing.
   
   This book does that, but then goes one step further. I think the authors and the 'For Dummies' team need to be congratulated as they have given everyone enough detail to make some very solid decisions about your investing.
   
   Very worthwhile and definately well worth the $$. And very solid to know it's written by investors not salespeople.



2. I was amazed at how quickly I received this book. The book was in excellent shape.



3. This book is stupendous! It covers a tremendous amount of information to get you started in real estate investing. My wife and I are starting a real estate holding company and this book has been the foundation of our learning.
   
   The only strange thing about the book is that for some reason the authors decided to only use the feminine pronouns "she" or "her" when referring to general individuals, such as "It's very difficult for an owner to lose her home and it's often even more difficult for her to..."
   
   At first this was just odd, but it became a real distraction and annoyance that they never use "he or she" or the common practice in English of using the male pronoun for such situations.
   
   Despite this sort of printed verbal tick, this is an excellent book with a lot of information.



4. Real Estate Investing for Dummies is yet another excellent real estate book in the Dummies series. I have "Home Buying for Dummies" and "Property Management for Dummies." Both are highly valued, and frequently utilized, volumes in my investing library.
   
   I have long thought that "Real Estate Investing" by McLean and Eldred was perhaps the top book for beginning real estate investors. But after reading "Real Estate Investing for Dummies," I now think the Dummies is equally as good, although it may not cover quite as much ground. Dummies is excellent in what it presents because it written in a manner that is easily understood, it provides sufficent depth, and it covers the key topics.
   
   I particularly like the chapter on "Due Diligance." The chapter does an outstanding job of describing the components of reviewing books and records, and inspecting a property that you have bid on and have had the bid accepted by the seller. Purchase contracts provide that the sale can be canceled without loss of earnest money if the buyer's physical inspection isn't satisfactory. Following the suggestions in this chapter assure that you won't be surprised with what you get, and gives tips on how to cancel or renogiate the deal, if you need to.
   
   I also like the final chapter, which lays out in plain English the time tested (non-infomercial guru) principals of how to make money in real estate. Buy when market conditions are conducive to buying, when properties are distressed and available as forclosures or on favorable terms with seller financing. Add value to properties. Hold on to properties that offer long-tem stable growth in rental rates. Refinance to tap into investment property equity and to further your real estate investments.
   
   Good solid advice.



5. This book is super if you are considering real estate as an investment. I like it so much, I take it with me virtually everywhere I go! It is a suberb resource and caters to almost everyone in every situation! A great book and will definitely get my use out of it! Delivery was super fast too!

5 comments about Common Stocks and Uncommon Profits and Other Writings (Wiley Investment Classics).

1. Warren Buffet has often referred to Fisher as his second biggest influence after Graham. Need more be said? You must read this book if you're interested in investing your own money. Fisher has a number of tenets that are well worth learning before you buy a stock. Fisher, like Buffett, was also a buy-and-hold-for-the-long-run investor and made most of his money with only a few stocks. This book is definitely worth the money.



2. This book has much more than the original "common stocks and uncommon profits". It's a nice collection of some of Fisher's greatest works. Just wish there was a hardcover version.



3. This book is a timeless classic on growth investment principles and research. Some reviewers have implied that Fisher's painstaking research is not practical and doesn't apply today. Beware, because if you are like Philip Fisher and you don't like diversification, the lack of research can be deadly to your investments! As he plainly states in the book, if you are not going to do the research, you should still learn what it entails so you can hire someone who can do the proper research for you.



4. As a Warren Buffett fan, I finally got to reading this book which is highly recommended by him. Buffett, it is said, is 85% Ben Graham and 15% Philip Fisher - whatever that means. I think that is a nice slogan but Buffett is really 100% Buffett. Unlike Graham and Fisher, Buffett is more than a money manager. Buffett has an incredible ability to buy entire companies with their management included.
   
   I wanted to like Fisher's book, but I found it so boring that I quit after about 100 pages. Normally I don't write reviews for books that I quit (after all it is possible that I did not give the book a fair chance), but I figured if I read more than a third of a book I should be allowed to critique it and hopefully help future readers. I hope this review helps you.
   
   Fisher guides us through 15 points to study before buying stock in a company. His points are certainly valid but they are too academic. Furthermore he does not guide the reader as to how to go about really acquiring the necessary knowledge. He dedicates three pages to "scuttlebutt" which is supposed to help us learn how to go about acquiring the necessary information. His writing style is very dull. I can read a dull book if it teaches me stuff but I did not find this book educational. The book is a better fit for management consultants who have to make fancy presentations to their clients than to investors. Fisher advocates buying growth stocks with certain characteristics, but there is no discussion on the price the investor has to pay for the growth. You can buy an outstanding company but if you overpay for it then it is a lousy investment. If you invested in Microsoft, a well managed company that is almost a monopoly in 1999, your returns would not be that impressive today. In the past 9 years nothing particularly went wrong with Microsoft - it is just that the price was too high in 1999.
   
   If you are still considering purchasing this book, I recommend scanning the chapter on the "15 points". If it clicks then maybe it is the right book for you.



5. I bought this book on the belief it could be helpful since it is widely acclaimed, but I discovered that is far from being an "investor's bible"
   
   First. It spend too many pages (about 30 or more) in "Family stories and affairs" that is a pure "torture" and absolutely useless to the reader eager to learn about investement strategies...This could be good maybe on a Fisher Bio book, but not here...I bet that while you are reading this part you will end up doing exactly like me...just skipping many of those pages.
   Then...The book lost itself on many "stories" about many companies and the market in general without any useful insights or which analytical/dynamical approaches were followed.
   I think it deserves 2 stars for the effort, but nothing more...
   
   To me, was absolutely boring. Maybe I didn't understand the book "purpose", I don't know...But while reading, I started to get bored and skipped many pages...Finally, I just quit reading it before finishing...Got nothing from it.
   I don't really know why this book is so acclaimed...And I'm wondering why Buffett says that He's a Fisher follower after reading this book...What He could have learned from this reading?
   Maybe to buy and hold a good stock over the years? I believe this kind of investing style requires any book to learn but just patience and following fashions and trends, like those who bought Apple Computer stock when the iPod frenzy was launched; by just being patient any investor would have made 5 times his/her money in these last years, The same is true for Research In Motion and many more companies that are living a great momentum in their products today.
   But it's just a matter of following the fashions of "hot" products rather than any sort of stock market skill and this could be really dangerous. Think of investors that today are buying like nuts solar tech stocks.
   
   In my opinion...The Intelligent Investor by Ben Graham is the world's best book on investing and a light-year far a better book than this one.