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5 rules for successful stock investing.

Tuesday, February 12, 2013

I would like to present a book on successful stock investing that comes highly recommended by a reader, Jojo.

The Five Rules for Successful Stock Investing: Morningstar's Guide to Building Wealth and Winning in the Market
US$ 22.95 each. Free shipping globally.

See Jojo's comments in an earlier blog post: here.

The book explains how to read financial statements, how to analyse companies and how to do valuations. It also shows mistakes to avoid and how to detect fraud.


OT83 said...

This book is good. Easily to read and understandable.

I think mew ge recommend this book before if my old memory doesn't fail me :)

AK71 said...

The author begins by stating the 5 rules for stock investing:

1. Do your homework
2. Find economic moats
3. Have a margin of safety
4. Hold for the long haul
5. Know when to sell

This is followed by a step-by-step strategy for following each of these rules.

In addition to advice on how to analyse a company's finances as well as its management, the book also offers advice on how to value a stock as "even the most wonderful business is a poor investment if purchased for too high a price."

AK71 said...

Hi OT,

If mew ge has this on his list of recommended books, then, it must be good.

I am getting a copy before my older than your old memory fails me. ;p

Thanks for the endorsement. :)

EC said...

Hi AK,

Thanks for posting the recommendation. I realize I actually downloaded the pdf copy a long time ago but haven't got around to reading it. In any case I don't really like reading stuff off the computer screen, I'm still the old-school type who likes the feel of physical books.

Best wishes,

AK71 said...

Hi Eugene,

I somehow got the idea that ebooks have caught on and that I am a dinosaur for not jumping on the bandwagon.

So, strangely, when I provided an ebook link as an alternative in the past, people would still opt for the physical book although they would have had to wait for it to be delivered a couple of weeks later.

Perhaps, ebooks are not such a game changer after all?

la papillion said...

Hi ak,

Yep,I recommend this book to many people :) I used to read once a year to refresh the concepts. It's really a good read, but I feel it's more on Graham style of quantifying value rather than buffet style of qualifying value.

I highly recommend it to people who wants to have a feel of how to do valuation :)

Anic said...

I changed my mind after owning a Kindle a few months ago. Try the cheapest Kindle (USD69 and you may change your mind. :)

AK71 said...

Hi LP,

It sounds like a must have standard textbook for any value investor. ;)

Thanks for the strong endorsement.

AK71 said...

Hi Anic,

I have an ebook reader which a friend gave me 2 years ago. I also have an iPad which another friend gave me at about the same time.

I did try reading a couple of ebooks on these tablets before but, somehow, I still prefer the physical books. I think I am an old dog. :(

la papillion said...

Hi folks,

Regarding the ebooks vs physical books, why have it one way? :) You can have both physical books and ebooks together, they are not mutually exclusive.

For books that I want to keep, I'll get physical copies because space is limited. Ebooks are for convenience. You can't go to a holiday and bring 3 books along, it's just too unwieldy. Ebooks serves that purpose for me.

I also enjoyed the convenience of not having to always have a bookmark with me when I read physical books. For ebooks reader, I just love the function of switching off and carrying on reading where I stopped. With cloud, you can even read across multiple devices.

Sorry, a bit out of topic :)

AK71 said...

Hi LP,

Good points! You are the guy! :)

However, I think 3 books on a holiday is a bit too much. One magazine is probably all I would bring unless I plan on staying in the hotel room most of the time. Even then, there is the TV. ;)

OK, I know. I must update myself. By the way, isn't cloud something in the sky that produces rain? OK, ok, don't knock my head. ;p

opal said...

Thanks for highlighting this book. I will borrow from the library if it is available. It may be the first book I read in the year of snake

AK71 said...

Hi opal,

You are welcome. Reading this book is on my "To do" list too. :)

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