This is a book well worth reading for newish investors. I particularly enjoyed the author's overview of the strategies taken by several guru investors (Buffet, O'Neil, etc). This alone will save you from reading half a dozen books (if you're willing to trust the author's summaries).
The author's investing strategies have received some criticism in Amazon reviews. In one sense I can see why. I found that the core mutual funds he suggests have one star ratings from Morningstar. They are highly leveraged so when times are good, you're going to do great. When times are bad, you're going to take a bath. However, my opinion is that readers should really consider what he has to say and then take what they're comfortable with and modify the strategies they don't like. For instance, I've used his suggestions to pick some value stocks (one of which increased 20% in a month), but I've picked more highly rated funds for my core. Another way of saying this is if you read critically rather than adopt everything here wholesale, this book will be very useful.
My one gripe here is that there is a lot of talk about researching using newspapers and ordering paper prospectuses, etc. Only a token effort was made to discuss how this information can be obtained electronically. For instance, I use a stock market plug in in Excel that allows me to automatically pull in data from Yahoo, Google, MSN, etc. This saves a HUGE amount of time. The next edition of this book should really focus on helping readers be more efficient in their research. Right now the research approach advocated here is mega old school.Get more detail about The Neatest Little Guide to Stock Market Investing (Revised Edition).
No comments:
Post a Comment