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Tuesday, February 12, 2013

5 rules for successful stock investing.

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.


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13 comments:

  1. OT83February 12, 2013 at 3:21 PM

    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 :)

    ReplyDelete
  2. AK71February 12, 2013 at 3:26 PM

    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."

    ReplyDelete
  3. AK71February 12, 2013 at 3:29 PM

    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. :)

    ReplyDelete
  4. ECFebruary 12, 2013 at 3:57 PM

    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,
    Eugene

    ReplyDelete
  5. AK71February 12, 2013 at 6:09 PM

    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?

    ReplyDelete
  6. la papillionFebruary 13, 2013 at 12:54 AM

    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 :)

    ReplyDelete
  7. AnicFebruary 13, 2013 at 8:21 AM

    I changed my mind after owning a Kindle a few months ago. Try the cheapest Kindle (USD69 http://www.amazon.com/Kindle-Ereader-ebook-reader/dp/B007HCCNJU) and you may change your mind. :)

    ReplyDelete
  8. AK71February 13, 2013 at 8:51 AM

    Hi LP,

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

    Thanks for the strong endorsement.

    ReplyDelete
  9. AK71February 13, 2013 at 8:53 AM

    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. :(

    ReplyDelete
  10. la papillionFebruary 13, 2013 at 5:02 PM

    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 :)

    ReplyDelete
  11. AK71February 13, 2013 at 11:58 PM

    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

    ReplyDelete
  12. opalFebruary 14, 2013 at 3:51 PM

    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

    ReplyDelete
  13. AK71February 14, 2013 at 4:54 PM

    Hi opal,

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

    ReplyDelete