Book Description

" . . . quite simply the best financial self-help book." ... Read more

Reviews (59)

Excellent, easy to read introduction for managing finances.
Chilton's book is a must read for anyone over the age of 10.

Written as a novel, Roy the Barber takes clients through easy steps to create wealth. He discusses everything from the new Roth IRAs to home buying, mutual funds, compounding intereset, investment strategies and how to save money necessary for achieving financial wealth. His advice is practical, sound, and realistic.

Unlike most financial books, The Wealthy Barber is free from technical jargon, and encourages readers to take action now to be smarter about money issues.

Even seasoned financial wizards benefit by discovering better ways to explain finances to others.

Read it, and pass it on to your spouse, family, children and friends.

Get Rich Slowly, Steady, and with Sure Success
There are a lot of books on how to manage your money. Most are too thick, few leave a lasting impression and almost none of them are fun to read. One of the first exception is "The Wealthy Barber" by David Chilton. It is really fun. You read this book like a novel with a trouble putting it down. But by combining the common sense and humor this "novel" in its dialog style shows that sound financial planning is pretty simple stuff. And it actually makes personal money management understandable and attainable.

I believe, plenty of years from now "The Wealthy Barber" could be remembered by readers. And they could remember Mr. David Chilton not as best-selling author, but as the guy who inspired hundreds of thousands of people to save their way to prosperity. In fact, for many readers, "The Wealthy Barber" is possibly the only book they need. If ever a financial planning was written for those without any financial backgrounds, this is it - "The Wealthy Barber".

Well-balanced advice
If you cannot decide whether you should own or rent a place to live in, the barber discusses this issue very thoughtfully, and this discussion will help you make the better decision.

The barber does believe that it is possible to make money in stocks. If you have discipline and courage, he thinks you can actually buy low and sell high. The barber tells you to buy undervalued stocks and then sell them later for a higher price when the real value of the stock is recognized by the market. The author does warn you that you do have to be able to tell the difference between an undervalued stock and one that is unhealthy. This is tough to do. So it is not the barber's fault if you lose money because he leaves it there for you to figure out.

What about buying low and selling high in real estate? On page 178 Mr. Chilton writes that sometimes it is possible to "buy it [real estate] at any price, sell higher." But in other parts of the book he writes that real estate prices won't always keep going up.

The 10% solution is not enough, it won't get the job done for many readers. There are signs that inflation, after a long absence, is on the way back. It should be a 15% solution.

I deduct one star because the book does not have an index. I think an index is very useful, and adds value to a book. However, on page 44, after discussing all the pros and cons of owning versus renting, the author says that buying the condo was a good idea. I became so happy that the barber put the new condo owner on the right track, I gave him back the star.

All I have to say is get on with it!
I almost didn't make it through the first part of the book.
The first two chapters are a waste of time unless you are a Detroit sports fan. (And I live in Detroit)
The next two chapters talk about wills and life insurance and have some useful information if you don't know anything about either of these two areas.
Start on Chapter 6 for retirement
If you are already a home owner, invest in a 401k or some other type of IRA, and have some idea of what you do with your disposable income then skip this book.

IF YOU ARE JUST STARTING OUT, I must say this book has much more "real" concrete financial advice than a book like Rich Dad Poor Dad. If you had to pick between the two, select this one

The Wordy Barber
There are true gems in this book and even though they are buried in a lot of irrelevant drivel, they are there! Do not let the silly modern 'reader friendly' fad of making any topic "easier", ' idiot proof' and 'for dummies' by the use of a conversation that is utterly off putting and idiotic, stop you from gathering the gems of knowledge in this book. Rise beyond that and get the BENEFITS!

Unlike some recent popular drivel that masquerades as ' a road to financial freedom' etc, after you have read this book you have a detailed blue print that you can follow immediately and get yourself on tract to a secure financial future.

As I said.. wordy, so 4 stars. ... Read more

Book Description

An intimate portrait of Warren Buffet, the world's richest man. With unprecedented access, Roger Lowenstein provides the definitive, inside account of the "Oracle of Omaha, " a true American original. 2 cassettes. ... Read more

Reviews (60)

An amazing American capitalist with principles.
The amazing securities investment analyst Warren Buffett is the focus of this near hagiographic biography that is filled with details about the life of an American capitalist that rivals the likes of Carnegie, Ford, or Morgan. Lowenstein has done a remarkable job in telling the financial story of Buffett's rise to securities fame, although not as much about his actual strategy (that's another story). The early years depict a precocious child adept at numbers in a household rich with a domineering mother and business-minded father. Buffett's early investments, his famous relationship with Katherine Graham of The Washington Post, his role in the Capital Cities purchase of ABC, his rescue of the Solomon Brothers, and his unique personal relationship with his wife all make for a highly interesting, fascinating tale, sure to be a hit in schools of business. Buffett's securities firm stock value has ranged from a meager $7, to an estimated 1994 value of over $20,000 per share, evidence enough of the sagacious leadership of this preeminent securities specialist. During the reckless '80s, Buffett's principle-centered approach to building value never wavered, thus solidifying his fame. James Lurie's powerful reading is dead on, evoking the power of this man's singular character. Highly recommended.

Proof that a book about investing can also be interesting
I picked up Roger Lowenstein's book because I had enjoyed his column in the Wall Street Journal. In a nutshell, he and Mr. Buffett explain the differences between investing and speculation. Purchasing a stock based on a cold-blooded assessment of its VALUE is investment; buying a stock based on guesses about the general market, the economy, the mood of the public or other factors that are inherently unknowable is speculation. Unfortunately, that distinction has largely been lost on the frenzied day-traders, the purchasers of Internet stocks and the legion of "expert" market prognosticators who ought to know better. If you are interested in investing successfully for the long term, you should read this book. Apart from all that, Lowenstein also gives us a highly readable story of Warren Buffett the person, and I came away with a strong sense of Mr. Buffett's personal integrity and intellectual discipline. (In a curious way, though, the laser-like focus and icy rationality that have made Buffett so successful as an investor have apparently made him less successful as a father and husband. Read the book and you'll see what I mean.) The book is worth reading simply for what it has to say about this remarkable man.

Best Buffett Book Ever
I've read a lot of books about Warren Buffett and this is by far my favorite. If you have to read only one, read this one.

Excellent reading
I found that I knew so little about Warren Buffett, and this gave me a wealth of knowledge. Unfortunately, the book was written before the tech boom and subsequent collapse. Therefore, you do not get a sense of what he did during that time of hysteria, but prior to that it gives an insight that most authors aren't capable of relaying.

How Buffett Thinks
This book helps you understand how one of the greatest business thinkers of all time got that way. (How would Buffett approach a paper route as a boy, for example?) If you are interested in getting inside his head, this book is a good way to start. ... Read more

Book Description

Develop a Winning Investment Strategy -- with Expert Advice from "The Nation's #1 Money Manager"

Peter Lynch's "invest in what you know" strategy has made him a household name with investors both big and small.

An important key to investing, Lynch says, is to remember that stocks are not lottery tickets. There's a company behind every stock and a reason companies -- and their stocks -- perform the way they do. In this book, newly revised and updated for the paperback edition, Peter Lynch shows you how you can become an expert in a company and how you can build a profitable investment portfolio, based on your own experience and insights and on straightforward do-it-yourself research. There's no reason the individual investor can't match wits with the experts, and this book will show you how.

In Beating the Street, Lynch for the first time:

* Explains how to devise a mutual fund strategy
* Shows how he goes about picking stocks, step-by-step
* Describes how the individual investor can improve his or her investment performance to rival that of the experts of the investment clubs. ... Read more

Reviews (44)

Peter's Principles are great
They've has done it again, this book is very funny and filled with useful tips from seasoned investor Peter Lynch. This book has several of "Peter's Principles" (which are very humorous one-liners that make a lot of sense for investors.) My favorite parts of this book are: The story about the St. Agnes 7th grade portfolio managers (these kids beat out 99% of fund managers when they had a two year gain of 70%.) Another part of this book that I enjoy are the subtle tips for evaluating stocks. Mr. Lynch doesn't tell you to do this, that, and another thing to find the ten-baggers, but he does give clues throughout the text.

Reed Floren

Yet Another Mis-Leading Exhortation to Buy Stocks
This book, written in 1993, simultaneously comes at the end of Mr. Lynch's career in money management and the beginning of a long sprint in the broader stock market, largely fueled by tech/internet stocks. In any period, one can expect 1 of 100 money managers to far outperform both his or her peers and the broader market by chance. Mr. Lynch was that one money manager.

Mr. Lynch starts the book by turning investing into a game. Although his method was subtle (using an example of grammar school kids picking stocks), the implications are profound. Investing does share some resemblance to many games we play in life, and one of the Great Money Masters, the fictitious 'Adam Smith' readily admits this in his classic book on investment, The Money Game.

However, Mr. Lynch takes things one step beyond the game, and as the book's title hints, he turns all investment activities into a competition. In so doing, he pits the small investor against the institutional Players, and as a result, sets up the naive reader to walk a well-trodden path littered with sorrow and the bones of many foolish investors.

Granted, 'Adam Smith' once said, "The Players aren't smarter than you. They just have more information", and there also is a certain level of truth to Lynch's assertion that the Little Guy can outperform the Big Boys. However, Lynch fails to disclose one important and critical difference.

I believe it was Hemmingway who said, in response to Fitzgerald's observation that the rich were not like the ordinary schmuck, that "Yes, I know. They have more money." Something frightfully similar can be said of the key difference between the Little Guy and The Players, but with one critical insight: The Players do not merely have more money, they have a lot more of Other People's Money. That in essence is the fundamental difference between The Players and the Little Guy, who must wager his (or her) own hard-won funds in order to play the Grand Game- the stock market.

Needless to say (but will be said anyway), the consequences of one's actions weigh heavily on one's shoulders when one's own money is at stake, but really aren't felt when Other People's Money is on the line. The Players play with Other People's Money, but you, dear investor, play with your own hard-won earnings. That said, the intelligent investor must ask herself, 'Do I really want to play with my money?'.

Beating the Street rests heavily on this undisclosed truism and a host of faulty assumptions. The book really is a sales pitch to buy stocks and to participate as much as possible in stock mutual funds. To that end, Mr. Lynch places before the reader a number of questionable arguments. Here are just two:

First, perhaps the most flawed argument of the book is that the small investor, upon retirement, will spend more than she earns in investment income. This is stated as a bona-fide fact when in reality, it is a generous assumption. From this assumption, Mr. Lynch then argues that one should invest in stocks and use some portion of the capital appreciation in addition to the dividend income for the purpose of meeting one's spending needs. He then fortifies his argument by citing inflation and emphasizing its ability to erode fixed income.

The facts are 1) how much investment income you will need is determined by how much you plan to spend, 2) many people choose to work either part-time or full-time after retirement (either out of necessity or desire), and thus have some supplemental income, 3) though the general historical trend for stock prices has been 'up', there is nothing that says that stocks have to go up, and finally 4) inflation can adversely affect stock prices (and have actually done so in the past). Lynch invokes the inflation argument when trashing bonds, and abandons it when touting stocks, even though inflation acts on both. Nor does his idealized comparison of stocks vs. bonds on pages 52-56 take into account taxes and transaction costs incidentally.

Second, on page 69, Mr. Lynch boldly says that, "If you plan to to stick with a fund for several years, the 2-5 percent you paid to get in will prove insignificant". This last statement may actually be worse than his first (of many) flawed arguments, for the following reason: the money lost to the load fails to compound at whatever investment rate of return, and over long periods of time, the difference between what you committed and what gets actually invested grows- and this is before we even consider the effect of annual expenses.

These and other flawed but superficial arguments for stock investing make for very difficult reading. Apart from the gross argumentative errors, the book presents many of Mr. Lynch's reminiscences of a stock market long gone. However, there are some useful hints in the book, most likely put there by Mr. Rothchild, but they are far outnumbered and over-shadowed by Mr. Lynch's deceptive pitch to buy stocks.

Excellent
It's hard to find a better written book on investing that Beating the Street. Despite working in the industy for many years, Peter Lynch urges people to do it for themselves. He writes clearly giving examples of how one could do better than the Wall Street pros. This book is one of the best on investing that I have read.

Not Half Bad.
In my opinion, this book was a lot more readable than I would have expected a book about the stock market to be. The light humor (very light) kept the book interesting and there were plenty of good tips. The "20 Golden Rules" were great. Lynch obviously knows what he's doing and he proves it by giving real life examples from his own successful experience. The only setback I found was that the tips were made out to be really easy, but they sounded tough. Overall, though, I would recommend it to both beginners and pros involved in the stock market.

Learn from the Master
Lynch's success comes not from his complex algorithms and estoric financial modeling, but from opening his eyes to the world and noticing good businesses.

His success at Magellan is attributed to his ability to find good companies, at reasonable valuations, and be patient enough to watch them climb.

This book is much more specific than his other release. Here, he provides detailed accounts of stock picking strategy, including how to choose from different stocks, when to buy, when to buy more and when to sell.

This is a quick read, but there is a huge amount of information that the average investor can use to their benefit. ... Read more

Book Description

The classic bestseller by Benjamin Graham, perhaps the greatest investment advisor of the 20th century, The Intelligent Investor has taught and inspired hundreds of thousands of people worldwide. Since its original publication in 1949, Benjamin Graham's book has remained the most respected guide to investing, due to his timeless philosophy of "value investing," which helps protect investors against the areas of possible substantial error and teaches them to develop long-term strategies with which they will be comfortable down the road.

Over the years, market developments have borne out the wisdom of Benjamin Graham's basic policies. Here he takes account of both the defensive and the enterprising investor, outlining the principles of stock selection for each, and stressing the advantages of a simple portfolio policy. Among the book's special features are the use of numerous comparisons of pairs of common stocks to bring out their elements of strength and weakness and the construction of investment portfolios designed to meet specific requirements of quality and price attractiveness.

The Intelligent Investor may be the most important book you will ever read on making your investments a success.

"The Intelligent Investor is the best book ever written for the stockholder," says author and investment counselor John Train. Benjamin Graham's classic work offers sound and safe principles for investing-principles that have worked for more than forty years since the first edition was published. With an introduction and appendix by Warren Buffett, one of Graham's most famous students in investing strategy, this book takes account of both the defensive and the enterprising investor.

"By far the best book on investing ever written." -- Warren E. Buffett

"There have been other good books written about money since 1841, but only a few hold up. The best known and most likely to make you money is The Intelligent Investor." -- Andrew Tobias

"Graham ranks as this century's (and perhaps history's) most important thinker on applied portfolio investment." -- John Train, author of The Money Masters ... Read more

Reviews (55)

One of the best books on investing ever written
This is a must read for any person serious about investing (ie not gambling) in the stock market. The book is rather easy to read. Graham was an investor but also a teacher (at Columbia). He has a good balance between technical yet simple explanation. If you know absolutely nothing about the stock market and financials, you may still find it a bit obscure at time, but you should probably not invest directly anyway (at least not right away). For everyone else, read it.
Yes the latest edition was written in 1972. It is amusing at time to see the evolution. But actually this evolution is also part of what you learn by reading the book. You do see that some things never change (like valuing a company!), and others do change quite a bit. it gives you a nice perspective. Now the intersting part of the book is to understand the logic of Graham, less its conclusions. The conclusions date a bit. Graham used to work at a time when most corporations where industrial companies, when nowadays services are dominant for example. So take graham conclucions with a grain of salt. But do read in depth and try to understand his logic.
Value investing won't make you rich overnight. But reasonnably well done, it will avoid having you lose money, and can even open you the doors of year by year over-performance in the market. Warren Buffett and several other successfull investors have followed the approach of Graham. But as they all say, when you first read about value investing, you either understand it right away, or you never will. But trust my 15 year of investing on the stock market, you're better of understanding the value of value investing. And this book is the key to it.

Somewhat out of date
Before deciding on whether to buy this book or not, one should take into account that even this version is 30+ years old, and that the original version was written over 50 years ago. Though successful investing for the greater part is founded on principles (which are timeless), the content, style and writing of the book is old-fashioned, which makes it a bit tedious to read.

Stock market history may be interesting, but the book continuosly refers to the 1971 - 1972 stockmarket, which is quite a bit out of date. There have been considerably better books written on investing since then (Hagstrom: "The Warren Buffett way", Lynch x 2: "Beating the Street, One up on Wall Street").

Yet there are still interesting chapters in the book, and some valuable pieces of advice as well. The book contains what Buffett views as the most valuable words ever written on investing: "Investing is most intelligent when it is most businesslike". Other valuable pieces of advice include why one should be careful about investing in IPOs.

Since one basically only has to understand and follow a couple of basic laws to become successful as investor (and those laws has nothing to do with beta or APT) and this book contains some of them, it can be recommended, with some reservation. But it is tediouos to read and better books on investing have been written since 1973.

Buy it !!! For any investor
The issue is how to make money on the stock market.

The conclusion is that if you have the discipline and follow the advise with rigour, you will make money on the stock market. It is not for a day trader but a genuine investor.

There are many pieces of sound advice. One of the recommended easy and time saving way to pick a stock: buy the stock of Dow Index companies with minimum P/E ratio.

It is a classic.

Use With Caution
It may seem an odd thing to say about a book whose hallmark is prudence, but this volume is dangerous. The general principles it inculcates are fine but be very wary of following its more specific recommendations such as avoiding a stock if its price/book ratio is greater than 2. Under current conditions you would end up with an odd, unbalanced portfolio. The basic premise of this book, that Mr. Graham could reduce his complex discipline of value investing to rules of thumb simple enough for individuals to follow, may just be a mistake.

Eye Opener
Graham's book is by far the most thorough, well thought out volume on investing that has ever been produced. Graham's thought processes and advice are indispensable. ... Read more

Book Description

"Once I picked it up I did not put it down until I finished . . . What Schwed has done is capture fully—in deceptively clean language—the lunacy at the heart of the investment business."—From the Foreword by Michael Lewis, Bestselling author of Liar's Poker

This hilarious portrait of everyday Wall Street and its denizens rings as true today as it did when it was first published in 1940. Writing with a rare mixture of wry cynicism and bonhomie reminiscent of Mark Twain and H. L. Mencken, Fred Schwed, Jr., skewers everyone including himself in his brilliant send-ups of bankers, brokers, traders, investors, analysts, and hapless customers.

"How great to have a reissue of a hilarious classic that proves the more things change the more they stay the same. Only the names have been changed to protect the innocent." —Michael Bloomberg President, Bloomberg, LP

". . . one of the funniest books ever written about Wall Street."—Jane Bryant Quinn, The Washington Post

"It's amazing how well Schwed's book is holding up after 55 years. About the only thing that's changed on Wall Street is that computers have replaced pencils and graph paper. Otherwise, the basics are the same. The investor's need to believe somebody is matched by the financial advisor's need to make a nice living. If one of them has to be disappointed, it's bound to be the former."—John Rothchild, Author, A Fool and His Money Financial Columnist, Time magazine

"A delightful classic and reminder of excesses past and how little things change." —Bob Farrell, Senior Vice President, Merrill Lynch ... Read more

Reviews (21)

A Look at Wall Street Excess with Classic Humor
If Will Rogers and Mark Twain got together to write a book on the excesses of Wall Street, the outcome would have been this book. Having stood the test of time and now displayed as an investment classic, this book is a must read for anyone who works in finance.

The author does a great job of humorously outlining the excesses of Wall Street, the classic conflicts between bankers and their clients, and the fickle nature of the market. It is a very quick read with many anecdotes that are relevant to this day.

An Investment Classic All Stock Investors Should Read!
This book clearly deserves more than five stars for exposing the folly of Wall Street in the most humorous possible terms.

This book's fame far exceeds the number of people who have read it. Almost every experienced stock investor will cite examples from the book, without even knowing their source.

The title refers to an ancient story (which the author finds is probably at least 100 years old by now) about a visitor to New York who admired the yachts that the bankers and brokers had in the harbor. Naively, he then asked where the customers' yachts were. Naturally, there were no customers' yachts.

Let me set the stage. The author spent two years on Wall Street in the 20s, but knew it better than that and continued to invest in stocks. He wrote the book in 1940 after the horrible bear years of 1929-1940. The memories of the 1920s were still fresh. Then he updated the book in 1955 in the midst of the 50s bull market with a new introduction in which he explained that the book did not need updating.

Although commissions are no longer fixed, and few spend the day sitting in a broker's office, many of the other observations in the book remain as timely as those in The Madness of Crowds. Human nature doesn't change.

Behind all of the hype about getting rich with stock investments is a sad reality. Over a lifetime, the vast majority of people get poor results from their stock investing. Around 90 percent of professionals will also underperform the market averages over their careers.

But the desire to "outsmart" everyone else is almost universal. Raging bull markets, like the one we had until March 2000 on the NASDAQ, only tend to reinforce these ultimately expensive urges.

I have been around professional investors for over thirty years and all the big scores I remember involving stocks came after someone who was a founder or worked for a company that went public cashed in their stock and stock options after many years of service. These are not stock-investing events, they are entrepreneurial compensation. In the Money Game, Adam Smith pointed that out, and it remains as true today as it was then.

One of the classic stories in this book is about what would happen if 4000 people started flipping coins against each other. You are eliminated from the competition after one loss. Although by definition, half would win and half with lose with each flip, those who had won ten times in a row (as must happen for some in this format) would soon start to give lessons in coin flipping techniques. That story nicely captures the folly of Wall Street. Even though some may win, it usually doesn't mean anything.

The book contains other investment classic stories that you must have in your repertoire. The book is brilliantly illustrated by the classy cartoons of Peter Arno. It is worth acquiring the book just for those.

The subjects covered include Wall Street's passion for prophecy, financiers and seers, customers (or the sheep to be shorn), mutual funds, short sellers, options, speculators and the bull market of the 20s, and the excuses handed out to those who are relieved of their money.

The writing style is urbane and witty. For example, there is the usual disclaimer on not following the advice in the book in the beginning. Except, it is illustrated by two hands with fingers crossed. And, the warnings are a just little different. The information in this book "while not guaranteed by us, has been obtained from sources which have not in the past proved particularly reliable."

The author had discovered that titles cannot be copyrighted, and he "had planned to have my book appear under a good title, The Adventures of Huckleberry Finn."

The author's favorite review of the book contained this phrase, "If I were J.P. Morgan, and I have no reason to suspect that I am not . . . .", and was signed by the author of the review, Mr. Frank Sullivan. The subsequent witty correspondence between them is included in the introduction.

If you are a fan of Louis Rukeyser, you will find the humor here comparable with the badinage on Wall $treet Week during the opening comments.

Seriously, the humor in this book will help you to better understand the risks associated with stock investing. There is a wonderful quiz you can take that will tell whether or not you should be a stock investor. Most will not pass that quiz.

If you still want to own stocks, I suggest that you advance to John Bogle's book, Common Sense About Mutual Funds. It can make you some real money.

If you do not want to own stocks, go instead to Rich Dad, Poor Dad. Follow on to Cash Flow Quadrant.

I also suggest you think about where else folly is taken seriously. This will also put things in perspective for you. My favorite location is the Congress of the United States.

Keep looking for those yachts when you make your investments! To whom do they belong?

Laymen's Fun
Well, maybe this was a 2 star book, but to me it was hopeless from the start. "Fred Schwed", a jokester of a name to begin with talks about Wall St just as naively as anyone who barely knows it.

His viewpoints are clearly from the beginner's point of view, or rather the beginner intermediate- the guy who has just accepted that trading is luck only and that long term investing is simple diversification. He hasn't quite accepted that there are true winners out there and that there is something of an art to the game and eagerly puts any down who attempt to play it. Clearly he has associated with those who are not "in the know" [...]

Anyways, I started at page 1 and read almost to halfway through the whole book before I could bare no more. I really did try to read it through, thinking that I could squeeze something worthwhile out of it. No, I can stand it anymore. I think I'll leave it at the train station on the way to the coffee shop right now! Waste of $[...] and an hour or so of my time..

Definitely not deserving of "Wiley Investment Classic" with the likes of Fisher and LeFevre.

Of the Advantages of Insular Thinking on Wall Street...
This book is very lucidly and wryly written, has sometimes a bit of a cynical objective tone (the author did get burned), but is definitely very humorous, as well as light and agreeable to read. The book is also spiced up by over a dozen of humorous old-fashioned cartoons from Peter Arno.

In essence, this books very entertainingly demonstrates the many advantages of having or gaining an independent critical thinking when facing the follow-the-pack mentality of Wall Street mobbers of all sorts (personally, people in a hurry always made me confused). Indeed, if you hadn't already discovered, the world of finance is probably one of the most implicitly and subtly coercive one there is ...

In these entertaining pages, you will discover that the vast supply of sheer mercantile marketing strategies of Wall Streeters of all sorts are only matched by the benevolent gullibility of a big deal to many Main Streeters. So if you might say there is a certain justice to it after all, you will definitively agree that there is a definite direction as to where the money flows, that is statistically at least... Check out those yachts!

In a broader context, the toll bridge of random walks leading (eventually) to so-called efficient markets does indeed feed on stocks being erratically transferred to and fro at whim, but you can be sure that Wall Street's marketers and intermediaries do have a vested interest in getting their (fair) share out of the (many transaction) deal(s), i.e. the more activity, the better (for them)... But keep in mind that these frictional and parasitic costs are totally non-productive in their ultimate economic end-result, apart from the fact that they provide a liquid (and sometimes efficient) market... a high price to pay for short-term inefficiencies, that also tends to favor a trading instead of an investing mentality...

People's biggest problem seems to be that they just can't sit still (cf. a 17th century author named Pascal...)... But just in case you believe this is another story altogether, let me quote the final words of Fred Schwed's Introduction to the 1955 Bull Market : "[...] my tendency has been to buy stocks, [...]. Then when they show a profit I sell them, exultantly. (But never within six months, of course, I'm no anarchist.) It seems to me at these moments that I have achieved life's loveliest guerdon - making some money without doing any work. Then a long time after it turns out that I should have just bought them, and thereafter I should have just sat on them like a fat, stupid peasant. A peasant, however, who is rich beyond his limited dreams of avarice."

If you are looking for a similar, but more recent, and probably a bit more sophisticated book on insular independent thinking in the face of interested so-called Wall Street and/or corporate professionalism, check out Lawrence Cunningham's fine collection of Essays on Corporate America, also a very worthy and enjoyable read.

To come back to Fred Schwed's book, you will probably enjoy it a great deal, and, 'tell you what, it might even make you richer in what you already have, instead of just making you richer in what you might have, if... to put it otherwise, five hundred dollars and some common sense are often worth much more than ten thousand dollars and the lack thereof, at least in the end result...

Original Motley Fool
"The more things change, the more they stay the same." That's how Fred Schwed, Jr. introduces this gem, if my translation of the French is correct. The book is timely, even though it was first published in 1940. The author shares his observations of Wall Street with wit and humor.

"The chief concern of this book", he states, "will be with an examination of the nonsense ... ." One example is this excerpt from a paragraph he takes out of The Wall Street Journal: "the action of the market was regarded as in the nature of a technical recovery, with little thought of the imminence of dynamic action." Nonsense was apparently well articulated before the bull market of the '90s. Another example is his explanation of why people buy high and sell low when they go to the stock market. They mistakenly believe that once prices are rising (or falling), they'll continue to rise (or fall). "But it is not a fair thing to say of the stock market," he claims,"which, not being a physical thing, is not subject to Newton's laws of propulsion or inertia."

There's more than "an examination of the nonsense" here. Readers may take "A Little Aptitude Test" to see if finance is their calling and consider "A Little Wonderful Advice" on getting rich. If Schwed's advice doesn't make you rich, his hilarious insight will at least make you laugh. ... Read more

Book Description

This gimmick-free, irreverent, and vastly informative guide--with over half a million copies sold--shows how to navigate the turbulence on Wall Street and beat the pros at their own game. Skilled at puncturing financial bubbles and other delusions of the Wall Street crowd, Burton Malkiel shows why a broad portfolio of stocks selected at random will match the performance of one carefully chosen by experts. Taking a shrewd look at the high-tech boom and its aftermath, Malkiel shows how to maximize gains and minimize losses in this era of electronic brokers, virtual gurus, and flashy investment vehicles. Learn how to analyze the potential returns, not only for stocks and bonds, but for the full range of investment opportunities, from money market accounts and real estate investment trusts to insurance, home owning, and tangible assets like gold and collectibles. Decode the rating game for mutual funds and discover the unique advantages of index mutual funds over the wide range of riskier alternatives. Year in and year out the best investing guide money can buy, this enhanced edition includes an update of Malkiel's famous "Life-Cycle Guide to Investing," showing how to match an investment strategy to your stage in life. ... Read more

Reviews (109)

Quite true (in the long run).
Having a break from school, my Finance professor suggested I read a book to help prepare me for my future in Finance. Because I have a limited background in Finance, he suggested that I read "A Random Walk" because of my insistence of finding the truth if the Efficient Market Hypothesis/Random Walk is a plasusible theory. Before reading the book I did not completly understand the logic that markets are Semi-Strong Efficient (public information/fundalmental analysis is priced into markets). After reading "A Random Walk", I finally came to a conclusion that markets are Semi-Strong.

Looking at my other major (Information Systems), there is a strive to reduce the use of human intervention in systems. The goal is to automate the whole process in order to make it error proof against the human ability for failure. If companies pay for information systems with little human intervention to produce the most efficient system, then why do we hire managers to intervene in our money? Probably because of the flashy advertisments we see.

Reading the book and looking at the Wall Street Journal, I have come to the opinion that the index-fund is the best option for the individual. It is the most efficient (making the highest returns for a given level of risk) and the least prone to human errors. Index-funds are designed to not be flashy, does not have humans picking stocks, yet over the long run provides the most returns.

So why do we have fundalmental analysis, portfolio managers, reports, etc.? Most likely because we as humans always like to believe that we are better than our neighbors. We believe that we can pick a better portfolio. Unfortunatly, the odds are against you. To mettle is more likely to err.

Overall a very good book. I especially liked the history lesson of financial bubbles. If only I read this book before the Internet bust...

History Does Not Lie. Learn to Avoid The Madness of Crowds
As we are experiencing the bursting of another stock market bubble (the dot-com craze), Burton Malkiel's insights - first expressed in the first edition nearly 30 years ago - remain as pertinent as ever. Want to know why "reversion to the mean" is inevitable? Read Malkiel's descriptions of "The Tulip Bulb Craze", The "New Era" of the 1960's, and his insights into the dot-com craze (published before the 2000-2001 sell-off).

Burton Malkiel correctly states that stock markets are not always rational, but that markets do over time correct themselves. He successfully presents a rational case that true value is eventually recognized by the market and this is "the lesson that investors must heed."

This book explores in more detail than many others the underpinnings of efficient market theory and its implications for the individual investors. Should you have any doubts about the value of adopting a long-term strategy of matching, and not attempting to beat, the market, then you should read this book.

In terms of practical application to actual investment decisions, the text not only sets forth efficient market theory but also concludes with some insightful observations about low-cost stock index funds and, if you must, how to play the game of choosing individual stocks.

There will be a few people who have beat the market, and will beat the market in the future. As Malkiel notes, statistics tell us that a very few individuals and investment managers will randomly beat the market over a ten year period. But this is part of the randomness, not the counter to the underlying theory. Regarding the reviews posted on Amazon's site by individuals who seemingly reject Burton Malkeil's random walk theory - let's ask them again in 20 years what they think then, and I bet 9 of 10 of these individuals would have been better off (under an objective analysis) following the principles expressed in "A Random Walk Down Wall Street".

This book is a classic. Consider it and similar well-written others by John Bogle (Common Sense on Mutual Funds) and Larry Swedroe (What Wall Street Doesn't Want You To Know) as a core part of your library and a foundation of your knowledge on investing. After reading the foregoing, consider exploring more advanced texts - such as Bernstein's "The Intelligent Asset Allocator" and Bruce Temkin's insightful "The Terrible Truths About Investing." All of these books owe homage to the foundations laid down by Burton Malkiel some 30 years ago. Buy this most recent edition, and learn to avoid the next madness of the crowd.

An excellent primer
The book focuses on the efficient market theory. Whether or not you agree with the theory, this book provides a great deal of background on overall investing. Particularly interesting were the sections on investing fads and follies and how the perils of certain types of analysis. I wouldn't recommend working with an investement professional before you have read and digested this book.

Intermediate level Theory for the savy Investor or beginner
As a 25 yr old newbie with no investment experience and money not yet in the stock market, Malkiel does a great comprehensive job of laying out the theories which drive the market day to day. After reading an array of stock picking books and strategies such as Chicken Stocks or Penny stocks, it was refreshing to catch up on the history of the market and the theories central to an investor's future discipline. A must read which is intelligent enough to open itself up to criticism but still back up its principles. Does not get bogged down in advanced financial math or overly difficult concepts, but conveys the principles upon which the stock market operates and with which your financial planners guide your money. Good humor laced throughout and a great overview of the last 5 years, which have been rough to say the least.

The definitive tome on the "Chicago School"
This is the definitive tome on the "Random Walk" theory of economics - that you can't base tomorrow's price of stock based on it's historical price. The concept is deeper (stronger views claim you can't predict stock price on ANY known information - that it's already baked into the current price) and the book covers the various shades of gray.

The author acknowledges differing pricing theories, and presents data to support his ideas. Agree or not, this is the seminal book on the subject. It's core to the curriculum of the University of Chicago's finance program - and that is quite a reference. In fact - if you disagree with the idea, and take a more behavioral or trend-following point of view, the book is worth a read to understand your enemy. :-) ... Read more

Amazon.com

To Peter Lynch, success in the stock market is pretty basic: if a company's earnings rise, then the stock price goes up. "This simple point--that the price of a stock is directly related to a company's earning power--is often overlooked, even by sophisticated investors," the former Fidelity Magellan manager writes in Learn to Earn, his third book on investing. "This is the starting point for the successful stock picker: find companies that grow their earnings over many years to come."

One of the best managers in the history of mutual funds, Lynch is certainly the person to help people choose the right stocks and understand the market. More so than One Up on Wall Street or Beating the Street, this Lynch book is for beginning investors of all ages. Lynch and coauthor John Rothchild are family men who are worried that teenagers aren't learning enough about the importance of American companies in improving lives and creating wealth. Lynch questions why students are taught that Hamlet was a tragic hero and Napoleon was a great general, but they don't know that Sam Walton founded Wal-Mart. In fact, Lynch's grasp of the past is one of the strengths of the book. One of the best chapters is "A Short History of Capitalism," a witty and homespun look at characters like Karl Marx, the Communist who believed capitalism was doomed, and the robber barons, the shrewd railroad magnates of the late 19th century who amassed huge fortunes by manipulating the markets.

Unlike the robber barons, beginning investors, Lynch says, should stick to the basics: get in the habit of saving and investing and putting aside a certain amount every month; develop a strong stomach because the stock market is going to fall and there's no way to anticipate it; do a little homework so you can understand the reasons to own a particular stock; and buy shares in solid companies and don't let go of them without a good reason.

This book marks Lynch's coming out as a fan of "direct investment programs," which are offered by many good companies. You purchase a couple of shares or so directly from the company and then you enroll in a plan and buy more shares each month, in some cases without paying a penny in fees and always without a broker--the way Lynch likes it. Lynch loves these plans because they're a great vehicle for investing a little bit at a time over a long period. Grab onto a company and learn about it, Lynch writes. The more you learn, the more you'll earn. --Dan Ring ... Read more

Reviews (48)

A must for everyone
Unfortunately we'll have to read through passages where Lynch and Rothchild act like the readers are the 15 year-olds that they originally wrote the book for! There is information in this book that even seasoned investors do not know. Unfortunately it isn't all investment info! Lots of history here, which we really should have been taught when we were entering high school! I would recommend Learn to Earn to anyone. They will learn a lot. If you need to learn how to pick stocks based on earnings, try another book after you are done with this one! By the way, I read where Lynch donates all profits from this book to charity!

Awesome for beginners!
My friend lent me this book and I'm so glad he did. I'm a beginner in investing and didn't have a clue about stocks or investing. This book was very concise and clearly written for a beginner investor. I've tried to read other books and either got bored or confused and stopped reading. This one I couldn't put down...so easy to read! I learned A LOT! The chapter on the history of capitalism was also interesting and helpful -- even for someone with a bachelor's in economics. I plan to buy my own copy! Most importantly, it taught me the importance of NOT spending money and investing in it instead!!! AFter reading the book, I stopped wasting money! I plan to read more of Peter Lynch's books!

Good for beginners like me
This book is apparently written for students, but the only way you feel that is the author's occasional attempt to be hip to what brand names his younger readers would recognize.

It is a solid introduction to how companies and the stock market works, with lots of interesting tidbits from history.

I wish he had written more about Index Funds, because further studies have shown me that many experts regard these as the closest thing to a safe bet you can make in stocks. But of course a book consisting of the one sentence "buy index funds" might not sell well. :)

Promotes Dangerous and Inappropriate Activity
Contrary to what the subtitle of this book says, it does not provide an introduction to investing or business. The book is in fact a blasphemous exhortation to 'dabble'- essentially to speculate, in the stock market.

The book, which was written in 1995, right around the middle of the greatest speculative bubble in United States history to date, fed into a common and pernicious malady among small investors- everyone it seems was making 'easy money' in stocks, and naturally many wondered how they too could get some of this 'easy money'. Lynch sought to answer that question within the confines of this misguided, thoroughly misleading book.

Well, of course you know the most recent ancient history. By the end of the 1990s and sometime around 2001, heaps of folks were lucky to have kept about half of what they put into the market, and many never even recovered (nor can they ever hope to recover) their losses to this day. More than a few readers of this book were led astray by the reckless stock cheerleading found throughout this book.

Learn to Earn... was a bad book because it gives the uninformed reader and financial novice just enough information (and an abundance of encouragement) to get himself or herself into a whole lot of trouble in the stock market. It lays out all the benefits of investing, defends with vigor the New Improved American Capitalism, and highlights all the fun and wonderful things that can happen when one one buys stocks and becomes an owner of a Great American Enterprise, without devoting any significant space to the pitfalls, costs and dangers of stock operations. Yet, I sensed in reading this book that the text was written two minds. While Mr. Lynch prattled incessantly about the wonderful world of stocks, with paragraph after paragraph of ebullient optimism, every so often Mr. Rothchild slips in a bit of sobering realism with a sentence or two here and there. In particular, really good morsels of information such as: starting a dedicated savings program before embarking on investing, managing and even better, avoiding, credit debt for investment success, and in any bull market, in the end the little guy gets killed and the Big Boys get bailed out by their rich and politically powerful cronies (as we saw in the last pass of the bull), could only have come from the level-headed and jaded mind of Mr. Rothchild (who by the way authored the cleverly titled gem, A Fool and His Money).

As can be expected with any investment book penned by Mr. Lynch, a number of statements are either half-truths or are just plain wrong. First, Mr. Lynch adheres to his flawed definition of an investor (which he uses in every book)- anyone that buys stocks and only stocks. From this flows his conviction, boldly stated on page 122, "If you are long-term investor, ignore all the bond funds and hybrid funds (those that invest in a mixture of stocks and bonds) and go for the pure stock funds." Throughout the book, he takes a similar stance on individual stock versus bond purchases.

Now, if you had not followed Mr. Lynch's brilliant and worldly wise 'investment counsel', you would have made pretty decent money in both high quality corporate bonds and US Treasuries (or even US Savings Bonds) over the last eight years, especially when compared against your peers who fully invested in stocks. Also, inflation, which Mr. Lynch (and many other scurrilous financial 'experts') uses to scare readers into buying stocks, was moderate during the eight year period, and we even had a spell of deflation at one point, thereby actually boosting bond returns. When all was said and done, it turned out that holding a combination of high quality bonds and high quality stocks out-performed total stock positions over the last few years.

Yet another of Mr. Lynch's erroneous convictions is that investors (buyers of stock) are the vanguards of capitalism. This is a half-truth. In fact, speculators are the vanguard of capitalism, as they provide venture capital and implicitly assume risk. Investors on the other hand, that is, those enterprising souls looking for income with (reasonable) security of capital, only come in after the enterprise has proven itself in the marketplace.

Thus, in essence, readers of this book receive good tutelage on how they too can become speculators, much like the 'stock operators' of the Roaring 1920s. Finally, the fact that the target audienc efor this book is young adults truly shocks me, as quite frankly, Mr. Lynch and others in the financial community are knowingly and purposefully engendering a nation of mindless, stock-buying drones hell-bent on gambling away their hard-won earnings, and their personal financial futures to boot.

Step One
Good beginning book if you have never taken a business class in school or are brand new to investing
Mr Lynch's advice:
Start now
Have a plan
Do your homework
Hang in there for the long term (a 20 year timeline)
I suppose you could apply it to almost anything in life. Losing weight, studying a foreign language, or starting a business etc.
This advice seems a little vanilla to me, however if you are just starting out this may be all you need.
Buy this book if you are in stage one of your investment path. ... Read more

Book Description

This classic book secured Benjamin Graham's status as a Wall street immortal. the carefully honed methods for finding undervalued stocks and bonds he described here have never been equaled, and have already outlived their author by more than 20 years. Even as Security Analysis has gone through five editions and nearly a million copes, you can learn time-tested investment secrets and strategies by going back to the source - THE ORIGINAL - and paying close attention to its wisdom. Written just five years after the crash, Security Analysis's message today is just as vivid, just as lucid, and just as vital as it was in 1934. ... Read more

Reviews (35)

must read
I just finished reading Grahm and Dodds Security Analysis, and
was completely overwhelemed. If you can read this book, understand everything in it, and be able to apply it, you are golden. However, if you do not really have much background in finance and accounting, it will be VERY hard to read certain parts. As a college sophomore, who has not yet taken any finance or accounting classes, i was only able to understand and benefit from perhaps 50% of the books content. This is a book where after further education in finance and accounting, it will be absolutley essential to successful investing. Also, because of the year the first edition was written, certain terminology, and examples (ie railroads) will not seem useful, however the principles those examples demonstrate are still very much applicable.
I would recommend reading the book to anyone who is interested in investing, however do not think it is something you can finish in a weekend or even a week. It took me a month.

Everything after 1934 looks suspicious
Someone wrote reviews to this book indicating that the major downside to it is its age. The book was written in 1934 therefore it misses all the modern developments of finance - modern portfolio theory for example - and all the new techniques that Wall Street "experts" use today.

As an answer I give an anecdote from Warren Buffett's life:
When stock investments started to become popular, the volume increased ten fold, and the modern techniques to make a profit were developed, Warren Buffet was extremely worried. He remembered what happened in 1929. He loathed the new trends in investment that tried to predict the future price of a stock. Therefore he had a meeting with all his fellow Graham students, he expressly forbid to bring anything newer than the 1934 edition of Security Analysis.

This happened decades ago, but history repeats. We all know what happened 3 years ago. We all know how "experts" thought that the market was booming, and how they let it crash. We all know how they made a profit on the money that private investors lost.

Nowadays when I go shopping for a book I always look at the date of pubblication, if it is between 1997 and 2000 I'm very wary. All those books about "new economy", "digital era", "e-commerce", "dot coms", etc. have to be taken with the maximum attention. Usually they contain a lot of inflated ideas that as we look at what happened after they were written we understand how much those "experts" really understand about stock investments.

If they were wrong then, why should they be righ now?
Trust me, but more importantly, trust Graham, trust Buffett, (those that have been consistently right for 50 years) this is the book to buy, "anything newer looks suspicious."

Packed With Knowledge!
A book that has been continuously in print for nearly 70 years obviously has timeless relevance. The principles of value investing, spelled out for the first time in Security Analysis by Benjamin Graham and David L. Dodd, have made fortunes for investors since it was first published in 1934. For example, Warren Buffett calls this book his Bible. Much has changed on Wall Street since the 1930s, but the concept of buying undervalued companies has not. In addition to its lucid explanation of investment basics, the book is a fascinating picture of a time when the lessons of the Great Depression were still being absorbed. The Securities Act of 1933 had just changed the rules of financial disclosure, and most public companies were manufacturers, mines, railroads or utilities - not the makeup of today's blue-chip portfolio. We recommend this book to serious investors who want to cut through modern Wall Street jargon, and to students of financial history.

ripping off graham and dodd
In a moment of confusion, I bought the so-called "fifth edition" of Security Analysis ... what a scam! This almost unreadable text may be more "up to date" than the 1934 or 1940 editions, but it completely lacks the beautifully elegant prose of the original.

The "fifth edition" is just another fat and overpriced textbook, taking advantage of the Graham and Dodd brand to sell a quite unrelated product. By all means, buy the classic written by the original authors (1934, 1940 editions), but stay away from this "fifth edition." It's really the "first edition" of something quite different and not very impressive.

Warning: Not Light Reading
Just like Intelligent Investor, my only complaint here is that they should make a travel sized version so you can keep it with you all the time. This one is at a higher level than any other investment book out there, but it is difficult without being convoluted. If you work in investing and have never read this, you should be ashamed. Of course, people who don't read this book are the people who make the market inefficient (thanks guys!). ... Read more

Book Description

New edition of the bestseller that started thousands on the road to commission-free investing!

It's been called "The investment guide Wall Street didn't want published," and it ignited the commission-free investment revolution! With Buying Stocks Without a Broker, Second Edition, Charles B. Carlson, CFA, thoroughly updates his unique guide to dividend reinvestment plans. Better known as DRIPs, these investor-friendly programs give you a safe method for buying stocks directly from issuing companies -- often with a discount and always without paying commission fees to brokers. If you want to own stock but resent paying commisions, you'll get the best of both worlds with this edition's...
*Directory of 1000 DRIPs -- with brand-new, enticing DRIP opportunities
*Thumbs-up/thumbs-down at-a-glance ratings of every DRIP on the market
*New corporate profiles and performance ratings
*New model portfolios using DRIPs
*Charles Carlson's favorite DRIP picks ... Read more

Reviews (11)

Excellent reference and guide for the $10.00 investor!
This book explains, in detail, the biggest investment secret on Wall Street- Dividend Reinvestment plans. Imagine- buying stocks without brokerage fees! This book tells you how- exactally how. Buying Stocks Without a Broker is a must for every small investor's library. This book can help you get into the stock market with a MIMIMUM of capital, as it describes companys, like IBM, with investment requirments as small as $10.00 per investment. A warning though; as some company's programs change, information in this book becomes inaccurate. Always first check with the company of interest as phone numbers and contacts are included in the book.

Helpful for the novice investor
This book was written before the likes of Ameritrade and E-Trade came along, and therefore is rather dated. The fees associated with most plans today and their minimum investments make DRIPs less attractive today then they were five years ago. However, for those who want to buy stock in companies and hold for ten or 20 years, they are worthwhile. Carlson writes in easy-to-understand language that a person not well-versed in Wall Street can grasp. Plenty of information on the company's listed along with telephone numbers and websites. Different kinds of portfloios are profiled so the investor can see what they can do with whatever funds they have to invest. The pros and cons of this kind of investing are listed so a person can decide if it is for them. It is a worthwhile read.

Helpful, But in Need of Updating
I first purchased this book years ago, and I have to admit at the time it was a revelation. I was trying to buy stocks and usually failed to do so simply because I did not want to pay broker fees and I was rarely in a position to buy 100 shares at a time (if you bought less, the stock price and the broker fee both usually went up). Back then, the book was a great aid. I still own a stock list in the book that I purchased thanks to this book.

But in many ways, this book has lost a lot of relevance. Now one can go online and purchase stocks in any amount with fees of as little as $3.00. And the fact that the book has not been updated since 1996 weighs heavily against recommending it be purchased by anyone today. Perhaps Carlson has not bothered to further update because of the ease with which stocks may eb purchased on-line.

Still, for someone who is a long term investor, it provides some choices as far as investing without involving a broker. And it is definitely an option if you have no desire to use the internet to make stock purchases. Just be aware that your options are limited; most companies do not offer direct purchase of their stock or Dividend Reinvestment Plans (DRIPs) to the public at large.

Disappointed
I bought the book hoping to learn a few more things about DRIP investing, and did not learn a thing! I am sure that the book was good when it was written (especially the first edition), but there is simply TOO much free information available today.

I gave the book a sympathetic 2 stars because Carlson is (or was) the DRIP guru.

Waste of Money. Out of Dated Investment instrument
I read this book and would say this is a non-sense book. Who would bother the hassle to read this book and buy stcok directly from a compay if an online transcation (e.g, datek, eTrade, etc) only costs you a tiny amount of money? The Price of the book allows you to execute two instant online transactions.

Don't buy it. Please. I have already wasted my money. ... Read more

Amazon.com

Bestselling author Jane Bryant Quinn has revised and updated her classic 1991 primer on finance, Making the Most of Your Money, to prepare readers for the challenging fiscal atmosphere that she sees in the coming century. Written in her familiar, easily understood style, it starts out by helping you determine exactly where you stand on money matters and explaining basic money management techniques. Next, Quinn offers comprehensive discussions about insurance needs, home ownership, college funding, investment planning, and retirement. A useful series of appendices provides additional information on insurance, college, bonds, pensions, and more. ... Read more

Reviews (176)

BORROW IT--DON'T BUY IT!
I gave this book a 3 only for people
who don't know beans about personal
finance and like to read as a hobby.
The information is way too basic and
some is misleading i.e. her comments
on stock splits. Quinn makes it
sound like when a stock splits say
2 for 1, you now have two five's in
place of one ten. The truth is when
a stock splits a tremendous amount
of momentum and excitement is
created --- it goes beyond a stock
splitting,it's the amount of money
that can be made during all phases
of the split that makes investing in
stocks that are splitting exciting. I saw similiar errors
with insurance. home buying, mutual
funds, credit etc, etc.etc. If you
are curous, like was, you may want
to read this. But don't take the in-
formation too seriously and you'll
definitely want to read some other
financial books to get some real
meaty financial techniques. My best
advice---save your money and your
time---READ SOMETHINGELSE.

Mostly 1970's advice
The bulk of this book is just regurgitated information from a book that Quinn wrote back in 1979. The newest piece of information that I found were the new (ha-ha) Roth IRA's

This book is really 180 pages of information fluffed out to 1,000 pages of mostly useless trash. The most useful stuff can be found on the internet for FREE. If you really want to read this book you can borrow it from your library for FREE. It will be there. This is not a hot book with a huge waiting list.

I also found it amusing to see this book listed with Suze Orman's great book The Road To Wealth here at Amazon. No doubt this is just an attempt by Quinn to jump on Suze Ormans coat tails (just like she did with Venita Van Caspel in late 70's and early 80's)

The Road To Wealth is an excellent book that has content which is also current by the way and Suze Orman has the credentials to boot. What credentials does Quinn have? I rest my case!

Skip this book and buy The Road To Wealth, The Automatic Millionaire or something useful. You may also want to buy the original version of this book; Making The Most of Your Money by Ray Linder. JEESH QUIIN: You can't even come up with an original title for Gods sake!

Almost as Imporant
As a companion book to "How to Make the Most of Yourself," this anthology can begin to reveal the other decisions of life that are important for everyone, and place in perspective the priorities we have, and those we make, and how. Usually leads to a comfortable life, if not always a happy one. Highly recommended for those who consider the deprivations of life as related to their finances and the power they possess rather than the satisfactions of life from other more elusive sources that cannot be spent but may be longer lasting and self fulfilling. Usually a help in making money!

This book has been valuable to me for eleven years.
I originally bought this book called "Making the Most of Your Money" back in 1992 in order to help me with estate planning and general financial advice: I was only 24 years-old. That being said I don't know how Quinn could have stolen the title from Ray Linder's book since Quinn's original book was published before Ray Linder's book (1995).

For the record, we have followed the advice of Quinn's original book. Overall our net worth increased substantially during the period 1999-2004 because we were diversified and we continued to invest throughout. We also saved around 15-20% per year: not as good as the 30% per year that another reviewer from Japan recommends, but still a decent amount considering we live in one of the most expensive areas in the U.S.

I totally disagree with those who say that the 1991 version of the book pushes annuities and cash value insurance. My father-in-law who is a CFP and insurance agent always hated Quinn's advice because she recommended Term Insurance. We personally don't own any annuities, but our parents like them so maybe we'll invest in them in the future.

I do agree with those who say you shouldn't rely on the book for detailed investing, estate planning, college savings, and insurance purchases. For that you should find a detailed up-to-date book on the specific subject that interests you and then consult a good CFP, accountant, or estate-planning attorney. There are a lot of things that have changed since 1991; as a result the book is out of date in many respects.

In conclusion, the book was very helpful to me as an introduction to personal finance, estate planning, and purchasing insurance. It was a very good book when it was published 12 years ago. However, a lot of things have changed making the book out of date in specifics. But, I still believe that the general advice in the book is good.

Incomplete, confusing and boring
From reading passagers of this huge tome by Quinn, it is all so obvious what she has copied from other financial authors...and what she has left out. In some areas Quinn rattles on and on buut never seems to get to the point. Somewhat like asking someone for the time and they try (incorrectly) to explain how a watch works and leaves you wondering; what the heck was that all about?

Another problem is that this book is now about 8 years old. A lot of changes have occurred in personal finance during the last 8 years.

Although the book looks intimadating by it's size, the real problem is how much is left out.

I recommend Suzes Orman's excellent book The Road To Wealth in place of, not in addition to this book. Other good books to get you up to speed include 10 Smart Money Moves For Women, Smart Women Finish Rich and 9 Steps to Financial Freedom. ... Read more

Amazon.com

From the school of unemotional investing comes the classic How to Make Money in Stocks, by Wall Street analyst and publisher William O'Neil. Readers new to securities will find it an excellent primer, one that relies on time-honored indicators such as quarterly earnings, market capitalization, and daily indexes. O'Neil's study of winning stocks stretches back to the 1960s, and he shares his insights here, describing what characterizes a growth stock, when to cut your losses (at 7 or 8 percent, no more), and how to spot a market top.

The techniques in How to Make Money in Stocks are hardly revolutionary, but therein lies their strength, as O'Neil claims his is "a winning system in good times or bad." Investors interested in Net stocks might be disappointed--the author's first rule is that a company must show a pattern of growing profits, which disqualifies many dot coms. (TryRule Breakers, Rule Makers for a different take.) O'Neil's approach to stocks is, above all, rational, and he pays little heed to market hype.

Those new to investing would do well to read this book before embarking, and even more seasoned traders may find How to Make Money in Stocks a refreshing return to basics. Markets may swing bull and bear, but O'Neil promises to stand firm. --Demian McLean ... Read more

Reviews (158)

An excellent book for the beginner to moderate investor.
This is an excellent book for someone starting out in investing. It teaches you WJ O'Neil's CANSLIM method of picking stocks.

What's CANSLIM you ask? CANSLIM is a method of picking stocks developed by William J. O'Neil. He's taken his years of investing knowledge and developed a system of picking stocks that has repeatedly proven to be successful.

The book takes you through each part of this method from quarterly earnings through annual earnings, when to buy, trading volume, stock leaders, institutional support and market direction.

He also teaches you when to sell a stock even in a bad market. He'll show you how to cut your losses and why it's important to sell at the right time to prevent major losses on a stock.

Finally he takes you through some of the best stocks in recent history and shows you how to read the signs that they put out. This will teach you how to recognize today's stocks that are ready to burst from the pack and soar to new highs.

This book pushes WJ O'Neil's newspaper, Investor Business Daily, as it has much of the information needed to use the CANSLIM method. But even without his paper this book teaches you the methods needed to make money in the stock market.

All in all I think this is a great book for investors.

The Book I Started Trading With...
Ten years ago, this book probably launched tens of thousands of eager investors on a journey towards riches. Two years ago, it probably ruined thousands more. I'm not saying that O'Neil's methodology doesn't work. In fact, I have great respect for O'Neil and this book because it launched me on my journey into the markets just a few years ago. The only drawback is that this methodology works best in a bull market environment. When you hit a persistent bear market like we've seen for nearly 2 years now, you are basically sitting in cash spending endless hours looking for that perfect stock to break out of a long-term consolidation. If you don't have the time to search chart-after-chart every night for the perfect setup then you should try a great investment book I just heard about called the 401(k) MarketBuster. The 401(k) MarketBuster will probably find you the same, or better, account returns in the long-run that you'd find with intermediate-term trading; at a fraction of the research time (literally minutes a year). If you are like me and have the time and inclination to learn more about the markets so you can find that elusive "perfect" setup to trade (Lord help you), then you might want to take a look at Dave Landry's book on swing trading. It will offer you more opportunities more often.

The best you'll find.
This is the best system you'll find anywhere. I originally worked as a broker for a firm that followed the Bill O'Neil philosophy and that firm made $$ for their clients consistently. Now I follow this system and trade for my own accounts with even better results. My last stock, TASR, was up roughly 100% (much more on margin) in one month and I found this stock by using the fundamental & technical analysis that I've learned through Investors Business Daily along with dailygraphs (www.dailygraphs.com). His strategy of cutting losses quick and letting winners ride is necessary to preserve capital and maximize gains. AAII (American Association of Individual Investors) rated this as the best performing strategy over several years period.

sparse on some concepts, but relevant in bull markets
First, I would have to comment that the criticism about IBD as a normal newspaper is unfair. Its analysis and opinions are encapsulated in the numbers, systematically compiled for any common stocks worth considering as investments. Any individual investor would see that at one dollar, IBD is a bargain. "How to Make Money in Stocks" is the guide to understanding the ratings of IBD, as well as a clear introduction to O'Neill's investing philosophy. The prevailing market conditions are very important to the success of CANSLIM, and reviews of the book written in the depths of the 2000-2002 stock funk may be colored indeed.

I, too, had some questions about "pivot points," etc. that seem sparsely described. This is because you are supposed to look at the charts. If this isn't enough, look at more charts (the book has plenty). "Pivot points" and "accumulation" are not exact concepts, so one has to practice looking at the chart and acquire an understanding of these concepts. "How to Make Money in Stocks" is one of those rare books that relies on the graphical presentation of data as much as copy writing to communicate its sometimes fuzzy ideas.

This book is superb at describing the CANSLIM method on analysis, which can be done these days with free internet sources. An excellent description for novices of investing research.

My advice would be to pick up this book, read it, buy a copy of IBD, and keep track of ten or so stocks for 60 days or so. If the market goes up and these stocks don't, look for a better method. If you need more comforting words in the newspaper to guide your money decisions, drop this stuff and hire some investment professional.

Invest comfortably
I have been investing in the stock market since 1998. I've made my share and lost my share. However, it was always a chaotic affair. I wasn't investing based on anything solid, it was just going with the market. Besides who could lose in the 90's? Then came 2000 and 2001.
Lucky for me I ran into this book and let me tell you something, it has made me comfortable with the way I invest. I don't need to keep up with the market every minute and I don't stress as much. I also understand better how to read graphs and how to interpret market activities. A book well worth it.
It does mention the Investors Business Daily paper a lot because they publish it but it's a worthy paper also so I don't see anything wrong with that. ...