Rating: Summary: Good...with a capital G Review: I was rather surprised by this presentation's listener friendliness. Being, as I am, one who is new to investing, I find that the stock market can be rather threatening. What does all this mumbo jumbo mean, I often ask myself. The Motley Fool Investment Guide: How the Fool Beats Wall Street's Wise Men and How You Can Too does a terrific job breaking down what is necessary and what is not. Additionally, it does so in a manner that keeps your attention and is easy to relate to. The manner in which methods and definitions are broken down into several points is very helpful. "Foolish" (capital F is good) checklists provide great ease in deciphering what stocks are right to invest in. They offer explanations of the importance of such characteristics as PE ratios, incoming cash verses outgoing debt, ability to grow immensely, and important signs of properly run management. Also, such subjects as shorting stocks and index funds are summarily explained. These explanations offer common knowledge to those feeling in the dark. The tips provided are level-headed and logical to follow. While for many people this program will not offer many novel ideas, it will provide a starting checklist when choosing what stocks to consider. Perhaps the most beneficial part of the Motley Fool's message is that the worst risk one can take, is not taking a risk. It is very easy to become weak stomached in the market we currently have. Sudden drops can make one want to sell it all. Most investing, however, should be with the intent of long term return. Thus while it seems risky to allow a stock to fall, the greater, foolish (lower case bad) risk is taking it out. Overall, this is a very good learning tool for one wanting the stock market to be demystified. It is a perfect starting tool for one wanting to get in on the action. A warning, however, is not to take this, and any, information as the word of God. Use this program to compare to other investment schemes to find what is best for you.
Rating: Summary: Very good intermediate book Review: I did not think i was going to like this book untill i was half way through it, but it is overall a good book. You must be cautioned though that this is not a novice book. It is probably the third or fourth book that you should read. ( see my other reviews for recommendations). I like their methods for picking stocks and have used them successfully myself. They also get you thinking. For example, why pay a broker who is only returning 11% per year if the S&P 500 is at 15%. I agree with the book you would be better off investing in an index fund. I also like their sense of humor. You will have to read the book to see what i mean. On the the oportunities side, I do not feel believe this is good reading for anyone who has no investment experience or, has not read any other novice level books. I also disagree with them on futures. While I do agree that they are very risky i think and experinced investor should try a small futures contract at least once in their investment carrear. Just remmeber the rule " dont gamble with what you are afraid, or cant afford to lose", if you are then by all means do not get into futures. I also think when writing the book they should have found a way to keep the readers interest from the start of the book. The 17 people in my investment club have all read this book, and agree. The book doesnt get interesting until half way through.
Rating: Summary: Perhaps genuinely foolish afterall? Review: This is the book that promises you'll make compounded annual returns to rival Warren Buffet's record by applying a brain dead strategy known as the 'foolish four'. This was touted as a thoroughly researched and proven method going back over 40 years. It has subsequently been proven by various university investigations that their "research" exaggerated the truth - hugely. In fact, in recent years, since the publication of this book, the 'foolish four' portfolio has been removed from their infamous website as it couldn't even keep up with a broad market index. It is wonderfully tempting to find a simple technique that ignores all but a few pointers and sit back and collect over 20% compounded returns per annum for a decade. If it were that simple, would not such a formula have been discovered long ago and used by everyone? Read for entertainment, but bear in mind what the "fools" said on their own web site when abandoning their own advice a few years later: "it was too good to be true". Read with caution!
Rating: Summary: Foolish, in the Very Best Sense Review: So, are you young enough to be looking at 10 to 30 years ahead of you to cosset your investments into something bigger than a breadbasket? Are you, at the same time, flush enough to have (perhaps after a few years of scrimping) 25 to 50 thousand dollars that YOU DON'T NEED? Are you comfortable with numbers? Can you, or can you learn to, look annual reports and financial statements in the face without flinching (or glazing over)? Does making an average of 15 to 20 percent per year on your portfolio over the long haul (for the ride may be bumpy, with some dives as well as climbs) sound sufficiently enticing? Do you have a day job that you intend to keep? Do you have a life outside of playing the market that you intend to live? Then, and only then, this could be the book for you! I love these guys. They're a couple of fresh-faced young men, brothers, who treat investing seriously, but that doesn't mean somberly. The first chapter or so of this book was so jokey I thought the ratio of matter to chatter was going to be about 1:1, but they got down to business, as it were, soon enough. Their basic point is that anybody who is willing to do some work looking at the fundamentals of companies can find some to invest in and, usually, stay with, that will significantly outperform the market. A person can build a portfolio of stocks that will beat the Dow, or the S&P 500, by several percentage points every year. Since the market, overall, is rising at 10 or 11 percent (ok, bad year to convince you of THAT) annually, over the long haul this 15 or 18 percent compounding of one's portfolio can lead to significant gains. And the lovely thing is, most of these are tax-deferred, since only the dividends of stocks that you hold are taxed, and the plan is to hold your stocks, not to churn them. If you do your homework well you should have stocks that you stay with for years - perhaps even leave to your loved ones, who will therefore treasure your memory. Yeah, yeah (I can hear you muttering): "willing to do some work"? Well, yes. YOU CAN'T GET AROUND IT! You have to crunch a few numbers, but it's fifth-grade math (some long division is required). You have to get cozy with financial statements. It'd be nice, moreover, if you understood something of what the company you want to own a chunk of does for a living (it might become YOUR living!), and some of the high points of its spectrum of the economic universe. The brothers will introduce you to some good ideas, and puncture some bad ones. They demonstrate why small caps are so great for the individual investor, for example. They tell you when, with impeccable logic, it is a bad idea to short a stock (even a stock about to plummet). They talk turkey about the real costs of trading - the commissions AND the spread. They quickly demolish the allure of day-trading. They campaign tirelessly for honesty and transparency in investment advice, and point out the problem with almost all mutual funds (except for the index funds, which they like, but just not as much as individual stocks). Oh, and they run a web site, which no doubt nets them a few bucks, which I certainly don't begrudge them. They are for power to the people, online power to the upwardly-mobile investor-class of people, anyway. (Hey, you have to start somewhere!) Mostly, this book is inspirational. It's message is that you, the ordinary Joe or Jane, can put away a few bucks and then invest it intelligently. If you're not using the rent money, and if your time horizon is meaningful - 10 to 30 years - you can come out the other end with a real, honest-to-goodness nest egg. This is NOT a book about making quick profits, or getting wealth without work. It DOES say that it doesn't take too much work, and it does take several years, but that if you apply yourself, and hold the course, you will do better in the long run than all the fund managers in the financial industry. But more importantly, you'll do well. Also they start the book with a snippet from one of my favorite poems, so I have to trust them!
Rating: Summary: Beat Market With Ease--Abandon Your Mutual Funds Review: Tired of sub-standard returns from your Mutual Funds? Take control of your own financial future. With little work you can easily beat the professional money managers. A little research, persistence and common sense is all you need. Thomas and David Gardner even show you how to double the return of the S&P with 5 minutes of research per year. This introductory book shows you what to look for to achieve impressive results from your stock portfolio. With the Fool's easy to use step-by-step program you will gain the confidence and desire to manage your own assets and make your own decisions. It's your financial future, construct it yourself. A word to the Wise, become a Fool!
Rating: Summary: A Solid - and fun - Introduction to Investing Review: The Motley Fool warns that the distilled wisdom of Wall Street distils down to less than you might think, then shows how to break free from the latest stock tips and build a portfolio. Like all the Gardner brothers' offerings, the Guide explains how to use real information from real financial statements coupled with your own personal knowledge in order to craft an investing style that works for you.
Rating: Summary: Great Book Review: I thought this book was wonderfully laid out for anyone new to the stockmarket. The book is full of examples and real life situations which makes the book easier to understand, and more fun to read. I would recomend this book to anyone who wants to get a better grip on there knowledge of the stockmarket.
Rating: Summary: Proud to be a Fool Review: This is an excellent book. It is easy to read and understand for people with no finance background whatsoever. It may not be advanced enough for people who do a lot of investing, but those are not the people that this book is targeted at. That said, I I have an MBA with an emphasis in finance and I found the book interesting and informative. Most everyone can learn from this book to enhance their investment strategies or just to work up the courage to take the plunge. It helps takes the mystery and fear out of investing and encourages people to take their finances into their own hands. Fool on! Thanks to the Gardner brothers!
Rating: Summary: Great methods here if you stick to the formula Review: I can tell some great points have already been made; good and bad about the book. First thing to know is that there are three basic stock strategies that I have noticed in my readings of about 12 stocks books. They are: (1) BUY AND HOLD: this is what the Motley Fools, as well as Peter Lynch, like. You pick great companies through research and buy shares when the company is down. Stockpile and wait at least 10 yrs; preferably more. At the end, you should havea lot of cash for retirement. Great for people who don't want to do a lot of work and have time to do this; not great if you want to make money faster though. (2) O'NEIL STRATEGY: based on William O'Neil's HOW TO MAKE MONEY IN STOCKS and 24 ESSENTIAL LESSONS FOR INVESTMENT SUCCESS. O'Neil picks great companies, too, but watche them on various graphs. Based on the curves, he knows when to sell and tends to do it within a few months to 2 years I believe. O'Neil doesn't believe in diversifying which, according to Robert Kiyosaki in RICH DAD, POOR DADY, is something you have to give up to make more money. See, most of the rich concentrate their money. The middle class tend to spread it all around so even though their risk is far less, their gain is, too. (3) TRADERS: these are the people who trade every week or monthly or even daily. According to the Davis study, 1 in 68 make a profit. Of course, if you have the right temperament and know the system, you can make a profit. But, I think that group is small. Check out Van Tharp's TRADE YOUR WAY TO FINANCIAL FREEDOM. So, the overall point, is that this book is great for strategy number one. It really comes down to your values on risk and your strategies. Personally, if you choose to go with #1, I would say this is the best book I have read on it so far. As for the fluctuations, I wouldn't worry about it. Anyone who knows the stock market, shouldn't look at the Foolish Four averages every day unless they want ulcers. Once a year is fine and their method has worked pretty well since the early 60s contrary to what the doomsayers say. In the future, ask yourself this: would you rather take the advice of journalists and commentators who make maybe 30-50k or people like the MF who most likely make more than that and have devoted years of their lives to studying a system?
Rating: Summary: what you never learned in economics class Review: This gem of a book will give you all you need to know about investing that would take over a year to learn in college/graduate courses. It also shows you that the beauty of our system is that individuals have the power in their hands to educate themselves and do at least as well if not better than the high paid Wall Street gurus. I always thought this kind of stock analysis was beyond me, but their step by step explanations make learning almost fun. Plus, you'll learn how Wall Street guys make all their money ripping people like us off (okay, I'm sure there are some honest blokes out there....). The point is, we are all capable if we invest a small amount of time. The writing is breezy and easy to follow (with lots of good humor packed in) and the subject matter endlessly fascinating. The appendices give you all the "idiots" stuff that you think you know but probably don't -- a kind of A-Z of stocks. It will also motivate readers to go online and find lots of this information. Highly recommended.
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