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The book is written in plain english, so people like me can understand it.It covers most of the things you need to know to get started and helps you to understand the way stocks are created and traded, and why you would buy one stock over another. I would recommend this book.
While reading this book, it became very obvious that I was investing my money the wrong way. The investing mistakes discussed were exactly the things I was doing wrong.I now have a CLEAR understanding of how to determine what stocks to buy and when. Seriously, DO NOT buy another stock without reading this book first.
Profitability - Consistent progressive earnings thru the years coupled with new innovations to sustain that growth. Debt to Equity ratio - The fewer the debts the better.
and I find this book incredibly helpful on the area of fundamental analysis namely the P/E and P/BV ratios, EPS and many others. Although the book is lacking in the technical analysis which is the real intention of the book as stated, it has done a great deal of helping me save possible losses in the chaotic times of the year 2008 when every single stock was tumbling down, by coming up with ideas and guidelines that made me decide putting up most of my money in the sidelines.
I do my own personal investing in the stock market both in the Philippines and U.S. The higher the cash ratio, the better.
At the worst, my portfolio has just diminished by an estimated 8% only as compared to the averaged portfolio losses of 40%. The book reminded me to focus more on the financial aspects of the company namely -- Cash Position - To have sufficient cash to pass thru the crisis.
Companies tend to weather the storm easily if they have less burdens. Current Ratio, Payout ratio, Capital Investments.The wisdom from the famous investors mentioned in the book such as the great Buffett, Peter Lynch, O'Neal and so forth, make me understand that to have a good grasp of the fundamentals means a much better sound investment, which would eventually reap good profits through time.
If I have to choose just one investment book, that is it. This small, compact book lucidly elucidates the most important investment principles in an enlightening way. It consists of concise summaries of advise from master investors like Warren Buffett, Peter Lynch and Bill Miller.
The best intro to stock market investing book around. Very easy to understand as well as very well written. Kelly knows how to keep the reader interested. I would highly recommend this book to anyone is getting into investing or thinking about getting into it.
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