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The Five Rules for Successful Stock Investing : Morningstar's Guide to Building Wealth and Winning in the Market :: 0471686174
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| The Five Rules for Successful Stock Investing "By resisting both the popular tendency to use gimmicks that oversimplify securities analysis and the academic tendency to use jargon that obfuscates common sense, Pat Dorsey has written a substantial and useful book. His methodology is sound, his examples clear, and his approach timeless."
—Christopher C. Davis Portfolio Manager and Chairman, Davis Advisors Over the years, people from around the world have turned to Morningstar for strong, independent, and reliable advice. The Five Rules for Successful Stock Investing provides the kind of savvy financial guidance only a company like Morningstar could offer. Based on the philosophy that "investing should be fun, but not a game," this comprehensive guide will put even the most cautious investors back on the right track by helping them pick the right stocks, find great companies, and understand the driving forces behind different industries—without paying too much for their investments. Written by Morningstar's Director of Stock Analysis, Pat Dorsey, The Five Rules for Successful Stock Investing includes unparalleled stock research and investment strategies covering a wide range of stock-related topics. Investors will profit from such tips as: How to dig into a financial statement and find hidden gold . . . and deception How to find great companies that will create shareholder wealth How to analyze every corner of the market, from banks to health care Informative and highly accessible, The Five Rules for Successful Stock Investing should be required reading for anyone looking for the right investment opportunities in today's ever-changing market. Editorial Descriptions are usually submitted by the manufacturers, publishers and authors. Contact us if you are one of them, and wish to change the above description. |
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Author: Guest
Have been meaning to put in a good word for this book for a long time. It's a gem. I've read an embarrassingly large number of introductions to investing in equities and this is probably the best. Other books purport to tell you how to identify hot stocks; Dorsey shows how to value companies. This isn't just a matter of understanding PE ratios and other traditional metrics, which most books explain more or less adequately. Instead, it means analyzing balance sheets and cash flow and income statements. _Five Rules_ provides as reader-friendly an introduction to assessing a company's financial statements as I've come across, with plenty of real-world examples. The object in the end is to determine the present value of a company's future cash flows, and Dorsey's explanation of a simplified version of Fisher's and William's discounted cash flow model is lucid and lively. Clorox is the company evaluated in this chapter, and en route there are instructive comparisons of HP and Dell, Best Buy and Circuit City, and, finally, AMD and Biomet. Chapter 8, Avoiding Financial Fakery, is particularly helpful. Obviously, having read this book and nothing else, you're not going to be able to spot something fishy in the footnotes to Microsoft's income statement that has escaped the attention of all the analysts. But for someone without a background in accounting, _Five Rules_ is a godsend.
Dorsey then conducts a very informative tour d'horizon of 13 industries. It should go without saying that before you invest in a company, you'd want to find out something about the economics of its industry, so you can compare apples with apples. The chapter on health care is especially good, but I found them all excellent.
In an Ameritrade ad that aired this week, a teenager asks her dad for $80 for a pair of jeans. The dad is nonplused, but the girl assures him that everyone is buying these jeans. He asks her who the manufacturer is, promptly logs onto Ameritrade, checks a chart, and buys the company's stock. The guy then gives his daughter the $80, a reward for the hot tip, presumably. He might do OK this time, but you have to figure he'd be a lot better off in the long run investing a fraction of that $80 in _Five Rules_.
Bottom line: there are a ton of books on trading strategies, but if you're looking for a practical book on value investing, this is the best.
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Author: Guest
It is one of the best book that I read, refered to stock investemnt. The fundamental analysis are very clear, and he explain how to read well all the statement of the corporate.
The sector analysis that Pat Dorsey made, is very interesting and is a great contribution for the book.
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Author: Guest
Excellent book! Well written, orderly and professional. I originally bought Smartmoney's stock book and returned it because it gave me such a headache and sections seemed to be skipped over. Morningstar's book is the way to go for any investore, whether just starting out or for the professional.
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Author: Guest
The Five Rules for Successful Stock Investing has recently replaced Buffettology as the best stock investing book I have ever read. Morningstar.com is always a great source of investing advice, and they have produced a very informative book.
Other titles I highly recommend:
The New Buffettology by Mary Buffett (Stocks)
A Random Walk Down Wall Street by Burton G. Malkiel (Mutual Funds)
The Theory of Investment Value by John Burr Williams (Stocks & Bonds)
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Author: Guest
From general principles to industry-specific issues, here is Morningstar's collective wisdom distilled into one volume. A modern investing classic that's loaded with practical info.
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