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Hot stocks may get all the attention in the press, but, Timothy Vick argues in Wall Street on Sale, you're not going to beat the market chasing the latest high flyer. Vick, founder and editor of the newsletter Today's Value Investor, demonstrates how building a winning portfolio means becoming a smart shopper. He starts by offering a thorough definition of value investing, listing its seven principles: buy assets on sale; form a notion of value; avoid losses with a "margin of safety"; adopt a "for-sale" perspective; stick to it; be a contrarian; and ignore the market. Vick looks at the stocks listed in the S&P 500 index from late 1994 to mid-1997. The stocks at the beginning of the test period with a price/earnings ratio below 7 gained an average of 228.3 percent compared to an 85.3 percent return for the entire index. Those low P/E or undervalued stocks were the real winners.

But there's more to being a smart shopper than just buying low P/E stocks. He cites the work of value-investment pros, such as Warren Buffett, James O'Shaughnessy, and Michael Price, mixing in enough tables, graphs, and case studies to prove ably that buying companies at sale prices is a hugely successful stock-picking method. He then shows how to discover hidden values, analyze financial ratios, and assemble a portfolio. And thanks to the development of the Internet, most necessary information is available for free; Vick includes an appendix of 150 Web sites. This is a how-to book for the investor seeking value--the investor that wants to get a dollar's worth of Wall Street for 85 cents. --Thom Hartle ... Read more

Reviews (14)

Useful and practical guide to value investing techniques
Wall Street on Sale:

I have just finished reading Timothy Vick's book and found it extremely useful. There's a lot of practical information packed into the book. An investor is well advised to read the book a few times. The book stays true to the teachings of Ben Graham, but ventures to Buffett where appropriate. The author explains techniques Graham used and how Buffett has built on these principles to come up with his own style. The book explains things in a complete and practical manner that I can immediately apply. I recommend the book highly for both novice and intermediate level investors wanting to better understand 'value investing'. Since reading this book, I have also subscribed to the author's value investing newsletter.

The average investment book...
Actually, to think that this book will teach you a whole lot about Warren Buffett's investment technique is significantly misleading.

I know many people have found this book more than just fascinating and it's probably bcoz this was the first value investing book they read rather than anything else.

This book, describes the many people who've had success with buying stocks at decent prices (hence, the VALUE investment idea) and how you too, as a reader can do the same. Then the author goes on to talk about Buffett, the billionaire investor who roughly made $8,000 plus out of every $1 invested over a 40-year period.

Now, to take this book as an intro to the technique is fine, but to take it as a "How Buffett did it book" is totally misleading.

You see, Buffett investing is about the margin-of-safety principle (essentially, making the purchase price so good even a bad sale yields satisfactory return), it's about his former lecturer Ben Graham and Mr. Market, it's about the temperament of investors, the attitude towards bear markets (falling markets), it's the pitches, strikes, and when to swing your money bat and most importantly, it's about the patience, rationality and discipline.

It's not just buying cheap. Buffett investing is about value NOT in the sense which the author of this book preaches. It's so much more than that.

I've come to understand Buffett investing as creating the most impressive investment record possible, consistently, over the long-term. To do that, you need to have some idea of how Buffett felt when he's buying and when other investors and the whole stock market is selling. It's about how to minimize your risk of losing money in a stock market crash, by doing this thing he calls "Workouts". And it's not about avoiding technology stocks either, that's a personal thing. Many argue that Buffett's techniques won't get you far these days which I think is a bit of a short-term thinking. Buffett's technique can be applied to technology stocks if you really understand the business. "Remember, what lies under every ticker symbol and stock tape is just an ordinary business!" Now, as a Buffett investor our task is to separate the myths and the facts and then, step on the plate... to swing at the perfect pitch. You don't have to buy them at rock bottom prices, they just have to be selling at a price you think is below it's intrinsic value.

Now, of course, more on intrinsic value if you read Hagstrom's first book, "Buffettology" by Mary Buffett and several other books. From my experience, you really need to read just a few books to be able to invest like Buffett and that the secret to this whole idea lies only in a handful of quotes. I'll leave you with one of my favorites,

"You don't need to know a person's exact weight to know that she was fat... " --Ben Graham

ahmadredza@rocketmail.com

superinvestor@prontomail.com

Read it again and again
Read it and use it. I don't think you will get a poor result in the security market.

Best Investment book
I have read many investment books but this gets my vote for the best of all of them. It is very easy to read as it is so well written and Mr. Vick makes many points that are so indisputable that I plan to re-read and re-read this book many times over in order to see through the sales pitch that Wall Street often sells us.

A great book!
I'm a new investor, and this book was very understandable, practical, informative, enlightening, ect.. This is a very vaulable resource of information on investing. I highly reccomend it. ... Read more

Book Description

Last year's headline-grabbing stories of the notorious bailout of Long-Term Capital Management and the 1.4 billion credit loss for BankAmerica opened the eyes of the investment world. These turbulent times have meant increased awareness of risk management and have lead to late breaking developments in new research, techniques, and theories in the field. Given the high stakes in today's business world with financial dealings in the billions (e.g., derivatives), it's easy to see why risk management has become the key buzzword on Wall Street. While Jorion focuses strictly on market risk, today's financial professionals are also evaluating credit risk and operational risk. Managing Risk provides a comprehensive description and analysis of modern risk management, including the regulatory aspects, organizational issues, potential problem areas, and tools to control and manage the many different kinds of risks: market risk, credit risk, and operational risk. It also discusses: structuring and managing the risk management function in a firm; practical measurement issues in the field; risk management in both financial and non-financial institutions. ... Read more

Reviews (7)

Vast but uneven coverage
I did like this book for its ambition to touch all the bases of risk management, and it does well on that score. It doesn't cover all the bases well, however. Once again, the kick-off is VAR, but the limitations of VAR aren't spelled out as well as they should be. Current products and their risks are not explained. There are virtually no practical examples of the strengths and weaknesses of various approaches, and that is a significant flaw for a risk book, albeit it is true of most of them.

Risks of many products such as credit derivatives cannot be adequatley measured by conventional methodology.

The subject of practical examples of risk (and hdeges) introduced by credit derivatives is comprehensively - and well- covered in "Credit Derivatives and Synthetic Securitization" by Tavakoli. Highly recommended for this subject and the treatment of ambiguity of conventional methods in general.

Comprehensive and excellent
This book is the most comprehensive treatment I've seen of financial risk management, particularly from a banking perspective. It covers both the regulatory and practitioner perspectives of modern risk management -- it's a veritable encyclopedia.

It's drawn from the wealth of experience of the authors, who are well known in both the academic world and on Wall St.

I guess what I like most about the book is the inside look it provides at the various aspects of financial risks -- no other book does it better, and I found the discussion enthralling.

While mainly geared toward banks, the book also includes a fascinating chapter on risk management in regular corporations. I think the book would serve equally well as a textbook for a risk management course or a handbook for the risk management practitioner.

Important stuff but hard slogging
This is an encyclopedia, and reading such things is not what most people, even when deeply interested in the subject are likely to do. It does provide a fair reference for specific topics, but this is not a subject one can really pick and choose.

VAR is the ususal starting point, and its famous authors (one of whom I hired for his skill in these matters) cover most of the bases in an interesting way.

Good book on risk management, February 4, 2002
I bought this book because some readers highly recommended it. I'm a financial derivatives strategist and risk management consultant. When a reviewed the book I disappointed in five main particular points: 1) The chapter on VaR is unsatisfactory and insufficient. The authors discuss this subject in a general approach. From my view point I have a preference for Jorion's Value At Risk. 2) There is no discussion about GARCH models, which decrease the importance of this book. I recognise "Risk Management" is a great book. It's a vast encyclopaedia of risk. 3) There's a great discussion of all types of risk, but without any practical solved case. This particular point demerit the seriousness and greatness of the book. 4) The level of mathematics in the book is a little advanced and without any support en practical cases, these poor numerical exercises and calculus tools are useless. 5) Montecarlo simulation approach is bad. There is a great discussion on this subject in Hull's Options, Futures and other derivatives, where the theme is practical, objective and concise. Finally and taking into account these five particular disadvantages, I'll give my rating to this book: 3 stars.

Don't miss it
I think it the best book about Risk management I read so far. I was impressed even by the way they treat market risk although it does not seem their main interest. The chapter on VaR is much better than a whole book on it. Great!!! Everyone should have a copy... ... Read more

Book Description

Based on a people-tested and time-tested system, this book gives you detailed strategies to show you how to master your money by budgeting effectively, reducing debt, and investing wisely. It examines the reasons why we struggle with spending, borrowing, and saving, and how to get these habits under control. The book is based on 10 step-by-step principles that build upon each other, culminating in an entire system that gets to the heart of: why we spend, and how to track and control spending; the factors that keep people perpetually in debt, and how you can eliminate debt completely (including mortgage) in nine years or less; why you may not be saving as much as you'd like, and how you can velocitize your money for future wealth. Also included is a section on tax reduction which dispels the myths surrounding taxation that keep people paying more than the law actually requires. ... Read more

Reviews (5)

Good, but the authors want to sell you more than the book.
This book is full of valuable financial information, but then, so are many books. What sets this one apart from others is that, in addition to the standard good advice, it approaches money from the point of view of emotion.

The book starts out by having the reader examine how s/he feels when spending money. E.g., does it give one a bit of a thrill, or does it leave one feeling guilty? It then proceeds to a more traditional exposition of the lessons of finance, but the "emotional" approach permeates the book and allows one to see money issues in a new light.

The downside to this book, and the primary reason that I'm giving it four stars and not five, is that the authors use it, at times, as a catalog for their financial and estate-planning products. If you can ignore having overpriced "estate planning kits" marketed to you by those who are otherwise trying to help your finances, then it's worthwhile to read this book... even for those who have read more than their fair share of personal-finance books. It felt a little unseemly (to me anyway) to be reading how important it is not to spend money unnecessarily, and then in the next chapter read about how one needed their estate-planning kit that almost certainly provides, but at a much higher cost, no more information than the Dummies book on the same topic.

All things considered though--taken with a grain of salt--the book is very good.

Powerful Stuff!! Dare You To Implement It And Stick To IT!
This book is great. I will read it over and over for the rest of my life. Its entertaining and yet dense enough to be used as reference material well after you finish it. Amazingly organized. The subject matter progresses just as it should and the real life examples really bring the lessons to life. Empower yourself and think about your future and that of your children. Plan and never be in want. Not a strain to implement. Good for any situation. Go!!! That you folks at Money Mastery!!! I am now aware.

Best Kept Financial Secret In America.
WOW: As a working mom, I like to read finsncial books to help my family. This is clearly the best financial and tax planning book that I have ever read, as the other reviewers have also noted. It is clear, concise, simply written, and chuck full of financial and tax planning strategies. There is an especially good tax section by an IRS attorney that was immensely helpful for my small business and for people who are thinking of starting a small business. For example, I didn't know that I could deduct all my dry cleaning and laundry expenses after a business trip. The discussion on deducting my entertainment and golf was particularly interesting.

I have read many financial books including the Rich Dad/ Poor Dad series and "The Millionaire Next Door" by Stanley, and this book blows them all out of the water.

Trust me: This book is one of the better kept financial secrets. Its too bad these authors don't promote it more because it is fabulous. If there is any one financial book that you should read and give to your children, this one is it!

Outstanding advice
I have to agree that this is an outstanding book that outlines the principles needed to master your financial life. Definitely 5 stars. This book is especially relevant to those starting in business. Get the book.

AWESOME
This is the best book I have ever read on on how to take control of your Cashflow and enjoy Financail Freedom. I recommend you buy it and start applying the principles. ... Read more

Book Description

Maximizing the trader’s state of mind is the key to successful results.Conflicts, contradictions and paradoxes in thinking can spell disaster for even a highly motivated, astute and well grounded trader. Mark Douglas, a trader, personal trading coach, and industry consultant since 1982, sends the message that "thinking strategy" will profoundly influence a trader’s success rate.Douglas addresses five very specific issues to give traders the insight and understanding about themselves that will make them consistent winners in the market.

Trading In The Zone offers specific solutions to the “people factor” of commodity price movement.It uncovers the true culprit for lack of consistency when it comes to stock picking: lack of focus and self-confidence.Through simple exercises, traders will learn how to think in terms of probabilities, and adopt the specific beliefs necessary to developing a winner’s mindset.Along the way, they’ll gain valuable insights into their own entrenched misconceptions about the market.

Backed by compelling examples, Trading In The Zone adds a new dimension to getting an edge on the market.Through a better understanding of themselves, as well as of Wall Street’s realities, traders will come to leverage the power of their psyche for unprecedented profitability. ... Read more

Reviews (59)

Shows traders how to make their emotions work for them.
Every trader knows that mastering your emotions is key to success in the market, and every would be trader has heard or read this. "Trading in the Zone" is sort of an "inner game" book for trading stocks and commodities, but far superior to other such books that I've seen. Mark Douglas gets into detail about how our beliefs, attitudes, etc, originate from our experiences, control our perceptions of the world and shape our actions in ways that may be contrary to our best interests, and then tells how to overcome these negative influences to produce positive results in the market. But, unlike most books of this sort, it isn't just "tell yourself that you're good". He lays out a specific plan for developing your "game" of trading, so that you learn how to develop a proper emotional state along with your technique. He stresses low risk trades, so that you have time to learn without being wiped out in the process. And he stresses paying yourself as the market makes profits available, so that you can enjoy positive results and their psychological benefit even if the overall trade result is negative. I think this book is also useful for life in general. I gave the book 4 stars instead of 5 because I felt that he used too much repetition, no doubt in an effort to drive home his point.

Picks up where every other book leaves off
     If you are like most people, after your first few losing trades you set about to learn better market analysis. After your next string of losers you learned about risk management. But there's still one more challenge to conquer; yourself.
     That is the major premise of this book. If it sounds like wishy-washy psycho-babble to you, I'll only say that I would have agreed -- four months ago, before I quit my 20-year technology career, obtained a Series/7 license and joined a professional day-trading firm. I now believe most people would lose money if you gave them 50/50 odds on whether or not it was going to rain tomorrow.
     In other words, successfully forecasting the market is not enough. Why not? Well, this book explains why not. It has to do with one's sense of self-worth, one's moral judgment of money, one's work-ethic, one's tendency to focus on good news while ignoring bad, and other things.
     "Zone" was recommended to a friend of mine by a professional floor trader who told him, "I wish I had read it before starting two years ago. Don't place another trade until you do." Well said. Does this apply to investors as well as traders? Oh, absolutely! If you have ever said to yourself, "I'm not selling that stock while it's down, I'll wait until I have a profit in it," then for the love of money, read this book.
     Finally, read "Zone" before Douglas' earlier work. If you still want more then read "Disciplined Trader" for a general review plus a deeper exploration into the author's philosophical and meta-physical theories.

Emotions Kill In Trading
I thought this was a well written book by Douglas. He constantly hammers the point of getting your emotions in check before trading. He says this in every single chapter in one form or another. Learn through repetition.

Wished I had read this book first many, many years ago before I lost bucoo $$$$, but now I've learned the hard way. The book is also easy to read and hits home on many things regarding one's emotions. They do NOT belong in trading (unless you want to lose money).

Found that greed and fear were my 2 biggest enemies. I don't have specific examples to give you of what he talks about since I read the book awhile back, but this book is definitely worth reading again and again, just to remind yourself the market plays no favorites and doesn't care who you are.

Learning to get your emotions under control as a stock trader or investor is of greatest importance, if you want to make money.

Focus on trading in the "Now" moment
Good traders dispassionately address opportunity as it presents itself. How do you arrive at this "destination state"? The author tells us that learning more about the market is a wasted effort if you first do not know about yourself. If you assume that each trade is independent of the other trades you have taken and view them as a probable outcome based on your "edge" then you are miles ahead of other traders.

You will need to find another book to generate trading ideas (your edge). This tome does a great job of discussing the "trading attitude". Douglas uses some odd imagery to describe how dearly a belief is held. He says that it has "energy" and then describes how physics states that energy cannot be destroyed. He lost me on that analogy, but the point he made is that we have unproductive beliefs that have to be neutralized by adopting productive beliefs and emphasizing them over those unproductive beliefs.

There are seven principles of consistency and five fundamental truths in trading presented here that are helpful to any trader review on an ongoing basis. If you are already successful then you may note that you have these beliefs already internalized. If you are new to trading these are invaluable because it can help you avoid the pitfalls that await you.

A must read for any trader - regardless of experience level
An excellent book written by a very experienced trader and author. I still use, regularly, one of his entry/exit strategy's outlined in his book, Trading The Zone.

Also, a very easy and enjoyable read.

Kevin Gillespie ... Read more

Book Description

Blind Faith takes head on the unquestioned financial dogma of modern times: that stocks are the best long-term investment you will ever make. But, as Ed Winslow ably reveals, the way we’ve been counseled to "play the market" amounts to little more than gambling, not investing. The time-honored means for controlling risk: asset allocation, diversification and having a long-term time horizon are inadequate. Blind Faith offers a new and easily understood means of investment risk management that will cause investment professionals to reexamine the underlying assumptions and foundation of Modern Portfolio Theory. ... Read more

Reviews (11)

JP from Oregon
Finally someone willing to write an honest analysis of the self-serving behavior of the financial industry. Anyone invested in the market who reads this book will strongly reexamine their beliefs with regard to investing. Undoubtably many in the financial services industry will hope that this book does not get read. I for one, hope that it becomes a classic.

Finally, some answers!
This book is one of a kind! It is the first book I've read that speaks the truth about the perils of investing in the stock market. The suggestions are clear, sensible and a must for anyone who isn't buying into the old worn out advice that no longer works in todays environment.

There is another way...
Finally, a book that speaks to concerns that I've had about investing since I read my first investment book but that no one seems to talk about.

The author covers topics that are taboo in most investment texts, such as how the investment industry is rigged against the individual investor (corporate structure, taxes, investment banks, government regulation, etc.), and what you can do to protect yourself from market risk. Diversification doesn't help when the whole market collapses after a catastrophic event like 9-11 or in a deep recession.

If you want to take advantage of up markets and hold onto your gains in down markets, then read this book.

A cutting edge, no-holds-barred financial guide
Knowledgeably written by Edward Winslow (the Founder and Manager of First American Financial Cooperative), Blind Faith: Our Misplaced Trust In The Stock Market And Smarter, Safer Ways To Invest denounces "playing the stock market" as being little better than gambling, and presents wiser, safer, more effective means to invest and put money to work. From why ordinary Americans should steer clear of stocks; to intelligent risk management strategies; to protected investments and means geared for retirement, and more, Blind Faith a cutting edge, no-holds-barred financial guide which is especially relevant in light of recent economic pitfalls, Wall Street volatility, and dramatic stock-related corporate scandals.

The Proof is in the Pudding
The proof is in the pudding. How many of us (the small investor) have actually made returns equal to the SP 500 index in up markets, and haven't lost their shirts in the down markets? In this book you'll learn why, and how the financial industry encourages us to be blind sheep. Mr. Winslow explodes the conventional investing dogma and shows us a better way. ... Read more

Book Description

The Encyclopedia of Trading Strategies is for traders who want to take the next step to consistently profitable trading. The authors--themselves seasoned veterans of the futures trading arena--pinpoint the trading methods and strategies that have been shown to produce market-beating returns. Their rigorous and systematic backtesting of each method, using the same sets of markets and analytic techniques, provides a scientific, system-based approach to system development...to help you assemble the trading system that will put you on the road to becoming a more consistently profitable trader. ... Read more

Reviews (17)

A Complete Insight Into Encyclopedia of Trading Strategies
The Encyclopedia Of Trading Strategies provides a solid foundation for developing the skills and knowledge base to develop one's own set of quantifiable trading rules and for developing a reliable trading "system."

The book begins laying the foundation with a description of the tools necessary to construct a system. Data -- the cleaner, naturally, the better -- is the point of departure. A discussion of simulators -- software that allows you to simulate trading -- ensues and walks you through the mechanics of interpreting output and determining their reliability and power.

A discussion of optimizers, or tools that find the best possible solutions to a problem follows, critically describing the major types of optimization and products available and how to achieve success, or failure, in their implementation.

Statistics for systems analysis are the next tool detailed. Without statistics, there is no way of knowing whether the profits (or losses) resulting from a tested system are real, an artifact of sampling or chance.

With the tools required for systems testing in place, the book launches into the discussion of its primary focus, the study of entries and exits. Ultimately, and deceptively simply, a trading system is nothing more than a system of entries and exits (at a profit or at a loss).

The Encyclopedia of Trading Strategies is something of a misnomer in that the title leaves the impression that one will find a catalogue of trading strategies and methods that the reader can scrutinize to extract specific techniques and use as a reference guide. In fact, the book provides the framework and background-knowledge necessary to design, test and analyze one's own trading system and could have as easily been dubbed A Primer On Developing Trading Systems.

One of the very best out there
This book is one of the best trading books ever published. It provides a very systematic and scientific approach of evaluating entry and exit techniques across a diversified futures portfolio. It presents by far the most rigorous and sound methodology of evaluating trading system robustness. The section on the use of statistical analysis to evaluate model validity is easily worth the price of the book.

The authors did an excellent job defining the correct way of optimizing system parameters. The part on exit techniques is also impressive. It contains a methodology on the development of exit strategies and presents many exit techniques.

Overall, the book is packed with a wealth of information. Every time I re-read a chapter I find a new gem. I strongly recommend this book to all mechanical system traders, especially those trading diversified commodity portfolios.

Great system trading book
Great book if you are interested in writing system code. Good backgound about ideas that may work and those that do not. The most valuable part of the book is the companion CD that is availabe. The software on the CD allows for testing of portfolio systems (something not really possible with most retail charting/trading software). Source code is fully revealed allowing for as much customization as one would like.

Interesting trading models and exit strategies
Mostly testing of trading models in C or C++. then testing of exit strategies. Well organized and easy to read, interesting even if you are not interested in optimizing.
Too much talk about slippage which he should point out that this is a problem for day traders that could be solved by automated trading platform and its not for everybody to worry about that much. Then talks also about gunning, as the name implies.

I am quite impressed ..
This is a great book if one wants to build a trading system starting from writing the code with a language such as C++. Especially given the fact that one can order the software from the author.

The book also examines some of the most common trading strategies. However, having reviewed other books on this topic and given the title describes the book as an 'Encyclopedia of Trading Strategies", it would be a useful book but not all-encompassing as one may hope.

Overall a useful book, particularly for programmers. As a book on trading strategies it does give some valuable insights but other books on the topic have to be reviewed as well.. ... Read more

Reviews (9)

Who Took My Money -- Book Summary
If you're sick and tired of working harder and harder and not getting anywhere, begin to educate yourself on how you can improve your financial position. If you don't think that things have become that bad, then just consider the fact that the average annual salary of an American worker increased only 10%, from $32,522 to $35,864, during the nearly 30 years between 1970 and 1999, while that of the "Fortune 100" top American CEOs has increased 2800%, from $1.3 million to $37.5 million, during the same time period.

In this ninth installment of the Rich Dad Series, Kiyosaki addresses the issue of which specific investment vehicles people should invest their money in. The need for such information remains greater than ever. Millions of investors lost nearly 9 trillion dollars during the stock market crash that lasted from 2000 to 2003. This marked one of the greatest wealth transfers ever. Remarking on this cataclysmic event, Kiyosaki writes, "The question is, How can so many millions of people be deluded into the idea that losing money every month, for years on end, without a money-back guarantee or insurance against catastrophic loss can be considered smart investing? It has to be one of the biggest mass sales jobs in the history of the world...a sales job that could only occur with a financially naïve population (203)." The answer of course is greater financial literacy. For example, many of those stock investors who lost money in the market may have avoided the misfortune if they had seen the graph illustrated below.

The primary reason why real estate values have appreciated more than the S&P during the ten years between 1992 and 2002 is largely attributable to the power of leverage and the fact that real estate is indexed for inflation while the S&P is not. While Kiyosaki favors real estate he acknowledges that to be truly rich one must invest in at least two asset classes. He specifically recommends building business and reinvesting its profits for growth. Excess profits should be held temporarily in paper until a suitable piece of real estate can be found. Real estate provides some additional benefits over the other asset classes including financial leverage and the right to take full depreciation and appreciation of the asset. But perhaps most importantly, Kiyosaki writes, "Success in real estate depends upon you as the investor. Success in the S&P depends upon the S&P 500 companies" (xiv). Seeking to retain maximum control over your asset remains one of the cardinal rules of investing.

The secret to Rich Dad's formula for ultra-high returns lies in your ability to achieve financial synergy by integrating the three asset classes (i.e. business, real estate, and paper) with financial accelerators such as OPM, OPT, tax laws, and corporate laws. The mind of a rich person operates, as opposed to that of the poor and middle class. According to Kiyosaki, "...successful investors integrate two or three of the asset classes, and then accelerate, leverage, and protect the cash flowing through the assets...The point is, an investor could own a small business and also invest in real estate" (xv).

Perhaps most importantly Kiyosaki tries to convince us that the pursuit of cashflow, as opposed to capital gains, should be the primary goal of any investor. In regards to cash flow, Kiyosaki believes that your most powerful tool is your imagination, "see if you can see potential value they cannot see. In my opinion, this is the best way to get rich" (225). In fact, most investors, such as with the stock market, fail because they do not use their imagination and are focused exclusively on elusive capital gains.

Worst Book Ever
DO NOT BUY THIS BOOK!!! OR ANY OTHER BOOK WRITTEN BY THIS AUTHOR. HE IS A CHARLATAN, A CHEAT, A CROOK. THE ONLY PERSON THAT MAKES MONEY FROM THIS BOOK IS THE AUTHOR. IF YOU ARE INTERESTED IN PERSONAL FINANCE LOOK UP JOHN BOGLE OR WILLIAM BERNSTEIN. THERE IS NO WAY FOR YOU (THE READER) TO GET RICH QUICK BY READING THIS WORTHLESS BOOK.

Kiyosaki Advances More Concepts
I have about 8-books by Kiyosaki, and find they all add to my financial perspective. What I liked the most about this book is his discussion between a capital gains investor and a cashflow investor. Most average investors are capital gains investors, but successful investors are cashflow investors.

Although I like the Kiyosaki books, I give it only 3-stars because when I finished the book, I'm left with "that sounds great, so how do I do it??" Well, I found some great answers in Van Tharp's new book "Safe Strategies for Financial Freedom". Van Tharp was a fan of Kiyosaki, and his influence is obvious. But Van Tharp finally reveals exactly how to get some investment/passive income from some experts.

The best book after Cash Flow
This book was great. So many of the other kept repeating the same thing but this one had quite a few new things to say. Very motivating and gives some tips, tools and ideas. I really liked the part about Capital Gains (ie. investing in stocks) vs. Cash Flow (rental properties and business). I also like the game analogy and what quarter are you in.

Probably one of my only complaints about his books is he makes everything sound SOOOOO easy! Now I realize if it were easy everyone would be doing it, which is why everyone isn't. This book will help you figure how you can be wealthy. Kiyosaki also went into some pros and cons of the various asset classes (business (the hardest of all), real estate and paper (stocks - the easiest).

All in all a good book and an easy read. Worth your time.

Far better than financial planner advice
If you have been listening to typical financial planners over the last three years, then you were one of the millions that lost nearly $10 trillion! I don't know about you, but I don't like to lose money.

Obviously the review written just ahead of mine was by a financial planner. Financial planners are just like brokers, that is, they cause you to become broker with their advice. The best financial planner you will ever have is the one who looks back at you in the mirror. If you give up your investments to financial planners, advisors, brokers etc. you will end up a financial loser.

Robert Kiyosaki has once again written an excellent book with advice that really works. What these "investment people" always neglect to mention is that Kiyosaki's advice has been right on all along. He predicted the crash of 2000 in his earlier book Rich Dad's Guide To Investing. What were investment advisors, financial planners and brokers telling everybody to do? That's right "buy and hold", (more like buy and pray that your investments will someday get back to where they were 3-4 years ago) "diversify" (put your eggs in many baskets and have many baskets of crushed eggs), "dollar cost average" (more like average down) and so on.

If you had listened to Kiyosaki as I did and many others, you would have been out of risky stocks and had your money in other equities that provided huge returns.

Ifyou are a serious investor, then I highly recommend this book along with Rich Dad's Guide To Investing and Rich Dad's Prophecy. Kiyosaki and his Rich Dad have been right so far and I would bet on him continuing to be right again.

Of course you could listen to a financial planner, advisor or broker and end up broker and perhaps join others and lose another $10 trillion.... again with their "professional" advice.

Good book RTK. Keep em coming. ... Read more

Book Description

The Five Rules for Successful Stock Investing

"By resisting both the popular tendency to use gimmicks that oversimplify securities analysis and the academic tendency to use jargon that obfuscates common sense, Pat Dorsey has written a substantial and useful book. His methodology is sound, his examples clear and his approach timeless."
–Christopher C. Davis
Portfolio Manager and Chairman
Davis Advisors

OVER the years, people from around the world have turned to Morningstar for strong, independent, and reliable advice. The Five Rules for Successful Stock Investing provides the kind of savvy financial guidance only a company like Morningstar could offer.Based on the philosophy that "investing should be fun, but not a game," this comprehensive guide will put even the most cautious investors back on the right track by helping them pick the right stocks, find great companies, and understand the driving forces behind different industries–without paying too much for their investments.

Written by Morningstar’s Director of Stock Analysis, Pat Dorsey, The Five Rules for Successful Stock Investing includes unparalleled stock research and investment strategies covering a wide range of stock-related topics.Investors will profit from such tips as:

• How to dig into a financial statement and find hidden gold . . . and deception
• How to find great companies that will create shareholder wealth
• How to analyze every corner of the market, from banks to health care

Informative and highly accessible, The Five Rules for Successful Stock Investing should be required reading for anyone looking for the right investment opportunities in today’s ever-changing market. ... Read more

Reviews (7)

Watch out for mathematical errors
Great book on investing. The book covers information you would normally have to search in many places for.
There are errors in the perpetuity formula on page 150 and the multiple used for discounting on page 144 should be 1.1449 no 1.449.

Insightful!
The best investing principles, as clearly reiterated here, are stable and evergreen. As an investor, you'll welcome author Pat Dorsey's unambiguous, straightforward presentation of the always valid wisdom of the markets. This conveniently organized book offers several chapters of general relevance to investors in all markets and industries, including an industry-by-industry examination of the determinants of value. The title is cute, but the content isn't about the title's rules - it is about learning and obeying the basics of stock investing. We recommend the author's long term perspective. Many of the directions he sets for potential investments could still be valid years hence.

Handles an intimidating subject artfully
There are many books on financial statement analysis, and I've bought most of them...being a liberal arts major who is working toward an MBA in Finance, I've found mastering ratios and concepts related to reading company annual reports frustrating and challeging: my brain seemed not to be wired to be competent in this subject matter. However, I find Pat Dorsey's treatment effective in that he uses the concepts in a less intimidating context than other books might, without watering down the content. Can someone read this book and decipher GE's annual statement to the last footnote? Not hardly. It is often said that it's knowing the essential 20% of a subject that is responsible for 80% of one's success, and this book fills this role in understanding that 20%. Further, the chapters breaking out how to modify analyis of different sectors and industries in the market is also helpful to avoid comparing apples to oranges when evaluating stocks and companies. Beyond this book, the next step up from this would be "Analysis for Financial Management" by Higgins.

WHY allow book reviews by those who don't read the book?!
I was utterly appalled by the sheer stupidity of the book review submitted by 'amodeus1791 from New York City'(28Jan04) - who claims he never read the book, but then he submits a self-admitted ignorant review of this book. I was even more appalled that Amazon allows "non-review" book reviews to be submitted!! Evidently, 'amodeus1791 from New York City' is a terribly un-read, unsophiticated, myopic, arrogant person who is abundantly ignorant of history also. Clearly, 'amodeus1791 from New York City' is the epitome of an example for that insightful maxim "Living is easy with eyes closed - it's understanding all you see."

So-called amateurs have made incredible contributions to knowledge in a variety of technologies and sciences in the ecourse of human history. And so-called amateurs have also made incredible millions in the stock market too. It is precisely the discerning amateur eye that has broken ill-fated innummerable mindsets throughout history time and time again. Why? Simply because so-called 'amateurs' aren't afflicted with myopic blinders - or blindfolds as in the case of 'amodeus1791 from New York City'. (You also have to question whether or not a respected research company such as Morningstar would really publish a true & pure 'amateur' on such a subject?)

My first recommendation is that all Amazon readers trash ignorant garbage that is spewed off so indiscriminately like that from 'amodeus1791 from New York City'. I also recommend that Amazon refuse to allow "non-review" book reviews to be published on Amazon!!

Actually, if you are looking for a variety of perspectives on a very complicated subject that is part science, part gambling, part intuition, and part art - then this book is as good as any other "random walk" before graduating on to the Benjamin Grahams and John Murphys of the world. It is well written, well researched, well organized, and well thought out -- unlike 'amodeus1791 from New York City'.

And for that matter - don't place any faith in my review either -just read the book if you are a semi-serious student of the subject. Because if you are a semi-serious student of the subject you'll want a variety of input - and you'll know how to make up your own mind as to what market perspectives suit your style of investing.

And by reading the book - you'll know infinitely more about it than 'amodeus1791 from New York City' does!

Good Source of Sector Accounting
This book does two things well. First, Mr. Dorsey spends time to walk the reader though the "firm value concept" of intrinsic valuation methodolgy. What is important is his summation points that there is no such thing as an exactly correct discounting rate. So, based on that comment, you should begin to question the whole process. I have wrestled with this question for decades and I can attest that just because "I" think the equity is worth x$ there is no way that the market has to agree with me, or Mr. Dorsey. The math exercise is good to learn and understand but it is not a guaranteed way to stock market riches. A point of contention, Mr. Dorsey's methodology elects not to reduce his equity valuation by the amount of long-term debt per share. Many others do, so, leave yourself a big margin of safety.

The other value of this book is its second half which is devoted to better understanding the various accounting differences among industry sectors. I welcomed the discussion on operating lease commitments as an off-balance sheet debt obligation. I think what you will find when you crunch the numbers is, most companies are very indebted. The concept of "Enterprise Value" and "Cash Return" is also useful but, it also won't make the market move your way.

In summary, a good read with something to teach but certainly it does not make this market speculation look like "investment". ... Read more

Book Description

Understanding Partnership Accounting (Second Edition) is an investment partnership accounting guide written by Advent Software and the Financial Services Industry Group of American Express Tax and Business Services. The book covers the accounting and legal services that investment partnerships require. It also describes how investment partnerships allocate the results of their investments to the partners, including tax reallocations for performance fees, and other tax and reporting issues. ... Read more

Book Description

Reflecting today’s market realities and the new innovative options products available, this fourth edition features an in-depth analysis of volatility and volatility trading; updated information on all stock option strategies, reflecting recent market conditions; buy and sell strategies for Long Term Equity Anticipation Securities (LEAPs); detailed guidance for investing in the growing field of structured products; the latest developments in futures and futures options; and the market impact of the most recent changes in the margin rules.

Packed with graphs and charts to clarify profit and loss potential, margin requirements, and criteria for selection of a position, this classic remains an indispensable resource for investors determined to master the world of options--and profit. ... Read more

Reviews (44)

Is this the options 'bible'?........
Other books may--but probably don't--deal with specific topics relating to options trading better but this is by far the best all rounder. I've read it cover to cover in this edition (4th) and also the 3rd yet I still, even as a fulltime options trader, refer back to it. The insight, experience and answer is always there.

I recommend it to strategists who attend my seminars and I recommend it now.

Required reading for the option trader
Options as a Strategic Investment is the best book I've read on option trading.It is not a "get rich quick" book by any means, it is a nuts and bolts tutorial on the pure mechanics of option positions and strategies.It is easy to read, and each concept builds seamlessly on top of the last.It's a great read from cover to cover, but also a great reference guide for the quick review of a forgotten concept.

Best options book for intermediate level - very practical
I've browsed/read a number of equity options related books and this is the best one I've come across for someone that is kind of at the intermediate level.It's very much a "how to" book that goes really in-depth on strategy.Almost as if the author were reading your mind, he addresses what the options trader/speculator is thinking and breaks everything down in a nice, simple manner.For instance, he has sections on what the alternatives and their pros and cons are if you have an option that has moved in-the-money and what things you need to consider.This book focuses on strategy, application, and practice...not much, if at all, on theory (Black Scholes, etc.) and that's what I like so much about this book.

The Best Reference Book on Options
I won't say I've read every book on Options out there, but I've looked at a range, from the very complex, full of calculus equations and whatnot, to the very simple, and to my mind, this is the best out there.First of all, it is very thorough and well organized.It goes step by step through virtually every option strategy, analyzing the various payoffs, follow-up actions if the market goes against you, etc.It is written clearly and concisely, with lots of examples.One reviewer says it's too complicated.If you think this book is too complicated, then you simply should not be trading options.Period.Another critic says there are too many examples.Yes, there are a lot of examples, and if you find you understand the concepts the author describes just fine without the example, then you'll probably just skip them.However, if there is something you don't quite get, the examples are a real help.I think some reviewers were hoping for a book that would tell them how to get rich in a few months trading options.Well, good luck, and let me know when you find it.But for a terrific reference that every serious amateur will go back to time and again, then this book should be the first on your Options bookshelf.

Paperback mistake?
In the description of the book, I think an error was placed saying " (Paperback - January 23, 2003) ". Check all the books by Mcmillan, and you'll see two version of Option as Strategic Investment, one is the 'book', the other, cheaper, is the workbook.
The 'book' is about 2" thick, quite heavy on the arms!The contents are precise. For each strategies, e.g. long/short call/put, spreads, ect..., Mcmillan explains their definitions, their reasons, their advantages, their pitfalls.This is purely a 'theory book'.If you have an opinion on the market (bullish/bearish/neutral), and want to see different spread strategies possible that could apply to your trading, this is a great book to read. If you want to find out what the floor traders do with your order, are they fair, or try to skim off your order, or try to manipulate the price..., you will not find it here.
p.s.: (I gave 4 stars because one should never give 5:p) ... Read more

Book Description

This book explains in detail how to build cash flow from lower end houses and apartment properties. Not slum property, just simple housing for folks on lower income budgets.

This can be a highly rewarding business, since these properties typically produce a cash flow even when 100% financing is used. In fact, when purchased correctly, these properties can be financed using short, 10 year mortgages with no balloon payments needed. In 5-10 years, you'll have a debt-free asset!

The last thing the world needs in another real estate investment book that just skims the surface. This book goes into extreme detail on the nuts and bolts of buying lower-end properties. In fact, the rehab and repair chapter is almost 50-pages long.

Even if you don't currently invest in this type of property, you will come away with dozens of tips on buying, repairing, and rehabbing houses. This book goes way beyond the typical "bookstore" book on investing.

A brief list of topics includes: Buying defective titles for mega profit, low-budget repair and rehab secrets, 60-months until free and clear, how to easily get owner financing, buying houses for $3000-25,000, why private deals are best, finding free building supplies, risk avoidance strategies, managing low-income tenants, buying real estate at sub-wholesale prices, telephone buying techniques, real estate investor resources, finding personal freedom, business philosophy, why there's big money in nasty properties, and much more. ... Read more

Reviews (4)

Great Information without the fluff
Perpetual Income is an excellent book written by an author who understands that his readers. Each fact filled page shows that Bryan Wittenmyer cares about his presentation. I've enjoyed previous works by this same author and can tell you that this work is a welcome edition to my investment library.

Great no-nonsense Book
This is a great book. I heard about it on a real estate investing website and the comments on there said it was a great book packed with good info. I couldn't agree more. Good, practical, down to earth, information for the real world. After 20 years of investing in real estate, Mr. Wittenmyer knows his stuff and shares it with his readers. As the saying goes, it is easier and cheaper to learn from someone else's mistakes-if you are thinking about going into the renting/landlording business or are already in-do yourself a favor and buy a copy of this book. It will save you alot of headaches and alot of money.

Perpetual income NOT limited to low end houses
"Perpetual Income" by Bryan Wittenmyer is an excellent second book written by the Reading, Pa. native. He has done the investing in low end rental houses that he writes about in his book. He shares his experiences, observations, techniques, and secrets in an easy to read 183 page book. His vehicle of choice is low end houses to generate that perpetual income promised in the book's title. But his rich background of nearly 20 years can easily be applied to rental houses in all price ranges, He writes about favoring houses with 3 or 4 bedrooms to attract and keep family tenants. Gas heat is his favorite heat choice, for example, because it is the cheapest. And even when the tenants are paying the utilities, "cheap utilities mean happy tenants, which means less turnover." Conversely electric baseboard heat while being the cheapest to install is the most expensive to operate. Many a tenant has moved from an electrically heated unit because of the high monthly costs. Lack of vacancy is a major contributor to the success of rental houses. Bryan also extols the virtues of exteriors of brick, stone or cement saying "the more the better."

Tenant selection, repairs, revenue collection are other topics discussed in this book. The author writes of the pitfalls as well as the rewards without sugar coating the benefits of real estate. This is not a get rich quick scheme, though there is a chapter on his plan to have a house free and clear in 60 months. There are topics discussed in this book such as water, sewer and property tax traps, that are seldom if ever written about in other real estate investment books. He has obviously learned much about rental houses and shares his experiences with the readers. He discusses in the book buying houses with defective titles, and getting free carpet. I recommend this book as well as the 2 others written by Mr. Wittenmyer. ...I know that he will answer questions about his books through his web site.

Great Real Estate Book
This is one of the best real estate books I've read. It's obvious it's written from the point of view of someone whose "been in the trenches". Most of the books out there give only an overview of real estate investing, and tend to make it sound easier than it is. This book gives all the details, even the unpleasant ones. An interesting read even if you don't intend to invest in low end properties.

The book is much less "slick" than most, ie it doesn't seem to be professionally edited. It's more like the author sitting down to dinner with you and telling you everything he's learned in his years of investing. You may or may not like this style, and it does make more difficult to locate specific topics in the book. ... Read more

Book Description

Praise for The Vital Few VS. the Trivial Many

"George Muzea's unique approach and market savvy make this a must-read for any investor who is serious about trying to understand what is really going on inside companies. He is hands-down the best analyst of insider activity in the business."
—Jon Jacobson
Managing Director, Highfields Capital

"George Muzea is an insider trading whiz.George sells his research to the cr¿me de la cr¿me of institutional investors. His market calls have been uncanny.Knowing men like George is one of the perks of my job."
—Herb Greenberg
CBS MarketWatch and Editor of Herb Greenberg's RealityCheck

"Most investors lose money in the stock market because of a lack of discipline. George Muzea provides a distinct course of action for those who want to win instead of lose.Having followed the market and Mr. Muzea for a number of years, I have no doubt that those who read this book would become better investors."
—Stanley Druckenmiller
General Partner of Duquesne Capital

Filled with in-depth insight and expert advice, The Vital Few vs. The Trivial Many will open your eyes to a new way of looking at the investment world, especially the stock market. You'll discover how to look past media hype to discern what the Vital Few or corporate insiders—those who know their companies best—are doing. By explaining which information is accurate and valuable, as opposed to that which is misleading and financially hazardous, investment professional George Muzea will show you how to successfully and intelligently evaluate the stock market and find valuable gems that have yet to be discovered by the masses. ... Read more

Book Description

With 100 NEW FINANCIAL web sites!

If you're like most people, you want to get your financial life in order but don't know where to begin. Since its first publication in 1996, Get a Financial Life has helped thousands of people get out of debt, start saving, and begin investing. This updated edition -- expanded for the Internet age -- includes the latest information on how to:

Book Description

Comprehensive volume on buying and selling country property for profit. This book is designed to help anyone with a basic education make profit in rural real estate. Written by Accredited land broker, B.K. Haynes, this indexed, easy-to-read volume traces the country property field backyears. If used as instructed, this book can literally make you rich! ... Read more

Reviews (5)

The most inspiring how-to book I have ever read.B.K. Hayne
I am convinced that BK's book is quite simply the best country property real estate book available. This is not your typical pompous "how-to" book filled with maxims that do not relate to current market realities.

BK does not lecture or preach, he simply teaches you how to think like an investor and developer. He generously reveals why real estate investment in country property is a hidden goldmine in 2005 just like it was in the 60's when BK got his start.I enjoyed following BK through the years as he tracks the many real estate cycles and mixes humorous and personal autobiographic experiences with current events and pop culture. An added bonus for me are the many examples of winning sales ads.

With BK and his book as inspiration, I recently purchased 20 acres in WVA planning to create 3 lots near a stocked trout stream. Thanks to BK, I was unintimidated by the list of State and county requirements as I worked through the subdivision process. The reward is more satisfying than I ever imagined.With BK's help I may just invest myself out of the rat race.

A Treasure Trove of Teaching from a TRUE Master
B.K. Haynes' first book GROW RICH THROUGH RURAL LAND, STARTING FROM SCRATCH taught me his principles of subdivesting, and led me to develop thousands of acres and miles of waterfront, while enjoying the outdoors and harvesting millions in profits.Now he is giving away the OTHER HALF of his genius as he updates and adds to the real estate knowledge he has already given the world.There are two key principles of B.K.'s amazing success readers will find in this book and nowhere else! How to conceptualize an offer of country property, and how to use direct response advertising to make customers literally run to their cars, race to the country and shower you with profits. The extensive collection of real ads from B.K.'s past bring these principals to life, and make the book a true treasure.I retired to Malibu while still young because of B.K. Haynes.Now you can too!

I should have listenedto BK Haynes
BK Haynes' 500 page book is filled with stories about how he bought farms and waterfront properties, subdivided them into 5 to 20 acre estates and sold them. He made a nice profit. The buyers mightnot have realized it at the time,but they got GREAT deals.

Here is one 1985 ad selling land near my town of Fredericksburg, VA.

"10 Acre Commutable estates north ofFredericksburgfrom $12,950 to $19,950 with access to RappahannockRiver."

They are worth a small fortune now. I shouldabought one. This is called "Shoulda - Coulda - Woulda."

The book is packed with practical advice - not from a professor in the ivory tower - but from someone who actually did it.

Here are some examples:
- 50 Ways to Buy Land with Little or No Money Down
- How to Get Financing on Country Properties
- Anatomy of a No-Money-Down Land Deal
- How to Write a Direct Response Ad

I would love to work for BK Haynes. Every day would be an education.

Buy this book. It's worth far more than the cover price.

A very good book
This is a very informative book. It is very specific and insightful. It also tells some of his life story , which is very interesting. I like this book a lot, and I recommend it for anyone and everyone.

Outstanding
If your interested in land acquisition for recreation or profit, this book is a must read. I am in real estate brokerage myself and found this book easy to read, inspiring and insightful all at the same time. ... Read more