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Featured Item:
WEALTH VIRTUES
A Guide to acquire more money than you spend and to save more
money than you owe
Rating:  -
The Motley Fool Investment Guide is all about helping the average investor to succeed in the investment world. And succeed does not mean a get-rich-quick scheme. It is about making good investment decisions based on common sense.
The part that I like the most was when authors explained why mutual funds underperform the general market. First, mutual funds are businesses that make money based on the dollar amount of assets under management. Its managers have plenty of things to do besides looking for investment ideas. So what do they do to get around this? They over-diversify to protect themselves, but clients can easily do it themselves. It does not take a genius to buy an S&P 500 Index and perform just as well or even better because 80 percent of mutual funds underperform this index. The final reason that the authors give for mutual funds' underperformance is window dressing, which is buying the hottest stocks before the quarter end to impress clients with the portfolio.
- Mariusz Skonieczny, author of Why Are We So Clueless about the Stock Market? Learn how to invest your money, how to pick stocks, and how to make money in the stock market
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David and Tom Gardner are real heroes because they are helping people know more about the great opportunities they have by investing their money in the stock market. I recommend this book to any person who is trying to improve their game as well as people that dont have experience with stocks.
They tell you how stocks work they are not the kind of investment authors that say alot of "how great they are" but intstead they take you and teach you how stock work.
Keep on the good work.
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This book dramatically changed how I invest with great results. This is not a book that encourages get-rich quick schemes or will tell you how to "trade" stocks. It will give you the building blocks to create a solid investment portfolio that, over the course of a lifetime will make you wealthy. If you know nothing about the stock market, but are considering moving into this realm or are just wondering if there isn't something better than your underperforming mutual fund THIS IS THE BOOK FOR YOU.
Rating:  -
This book provides different viewpoints for investing, but mainly profiles their strategy: finding those diamonds in the rough. With chapters titled "maybe you should just buy mutual funds" and "maybe you should avoid mutual funds", this book builds up to their main focus: providing good suggestions on valuing companies (with the focus on small cap companies).
Having previously taken finance courses, I found this book as a good refresher. Written in a light hearted manner, this book was pleasing to read, rather than perusing old text books. As with any book, they showcase their views. I would recommend reading other books, not only to gain more knowledge of investing but to see other strategies.
Rating: -
Overall,a well-written, easy to follow, and a solid book for people who attain a basic knowledge about mutual funds and stocks. This book is a must read for people who are interested in learning, exploring and testing stock picking techniques and for people who believe in the importance of doing fundamental analysis (financial ratios,data,etc.)when selecting the right company to invest in. The book offers a useful eight-item checklist that investors most follow when choosing the best small cap growth stocks. Also offers the pertient ratios from balance sheet,income statement, and cash flow that investors need to pay careful attention to when picking the right small cap stocks. The Motley fool shows a reader another way to make a positive return on stocks which is perfectly set for investors who are only interested participating during the bear market. The book recommends them to short stocks. Shorting stocks is the complete opposite of buying stocks. In addition, the book provides an useful overview of how companies go public (IPO) to issue stocks to investors to raise money, how common people can either look for brokers, discount brokers, deep discount brokers, or directly purchase stocks from the company to avoid paying commissions to purchase stocks online, and etc.
However, not recommended book for readers who are technical investors because the book never delves into the subject of technical analysis but gives a short overview of why they dislike the method and should not be used when picking stocks. Moreover, not the right book for option and future investors because they have a little knowledge in this area.
In conclusion, if you want to know how to analyze company fundamentally, purchasing this book should help but be wary and skeptical about one chapter that discusses about dow dividend investment technique. The brothers give false hope to investors that anybody is guaranteed a 25.5% annual growth return for 20 years if they buy 2 of the second lowest and 1 of third,fourth, and fifith lowest price from 30 dow stocks or called foolish 2-2-3-4-5 approach. This might be true in the past 20 years but due to our unstable and unforeseeable economy in the future, a stock return of 25.5 % for 20 years is highly unlikely to happen. More likely situation we can experience is witnessing another stock market crash or seeing a rise of inflation 4 % every year making 25.5% return look a dismal 14%. The only aspect on their approach to Dow investment that I agree with is their claim about the safeness of dow stocks. Nobody can argue this claim since Dow stocks consist of 30 well-established companies which have been in business for a century and it would be hard picturing them filing bankruptcy.
Overall, I would give a 3.5 star to this book.
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