The Dick Davis Dividend: Straight Talk on Making Money from 40 Years on Wall Street (Hardcover)

by Dick Davis (Author)
Key Phrases: passive investing, model index fund portfolios, lazy portfolios, Wall Street, Thirty-Five Nuggets, Warren Buffett (more...)

Editorial Reviews

Product Description
A pioneer in the financial media, Dick Davis has interacted with the investing public for over forty years. With his new book, he continues this trend. The first part of The Dick Davis Dividend contains an easy-to-read, yet profound discussion of the essentials of investing—focusing on the savvy veteran’s often unconventional, core beliefs. While the second part of this engaging guide makes a compelling case for combining both passive investing via index funds and active investing via stocks and mutual funds.

From the Inside Flap
What can you say about how to make money in the stock market that hasn't been said before? How many different ways can you say buy good stocks cheap, diversify, hold on, and control your emotions?

The Dick Davis Dividend doesn't avoid these basic concepts but it spotlights others, which are seldom discussed, that the author believes will strongly tilt the odds toward investors and give them a valuable edge. These are passionately held convictions expressed with unusual candor and clarity.

A pioneer in the financial media, Dick Davis has interacted with the investment public as a radio and TV broadcaster, newsletter editor, columnist, lecturer, and teacher for over forty years. With The Dick Davis Dividend, he continues this trend. The first part of the book contains an easy-to-read, yet profound discussion of the essentials of investing—focusing on the savvy veteran's often unconventional, core beliefs. For example, Davis pounds the table about the over-exaggerated value of homework, the irrelevance of news, the underappreciated durability of major trends, the predisposition of investors to fail, the curse of being totally and instantly informed, and the rarely acknowledged role of pure luck.

Davis' bluntly honest approach is reflected in some of the chapter headings: "Absolutely Nobody Knows the Answers," "There's Always an Exact Opposite Opinion," "The Market Is Always King," and "After You Buy It'll Always Go Lower."

The second part of this engaging guide makes a compelling case for combining both passive investing via index funds and active investing via stocks and mutual funds. Davis focuses on twenty-eight buy and hold, diversified, index fund model portfolios. Each one is recommended by a leading authority in the world of indexing. Included are the favorite index portfolios of Burton Malkiel, John Bogle, Ben Stein, Jonathan Clements, and twenty-four others. The wide selection of models makes a passive/active strategy easy to implement.

The Dick Davis Dividend is filled with in-depth insight and straightforward, practical advice labeled "timeless wisdom" by bestselling author Andrew Tobias. It is an uncomplicated explanation of how today's investor can meet the challenge of an unpredictable market and come out a winner.

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Product Details

• Hardcover: 471 pages
• Publisher: Wiley (December 10, 2007)
• Language: English
• ISBN-10: 0470099038
• ISBN-13: 978-0470099032
• Product Dimensions: 9 x 6.2 x 1.8 inches
• Shipping Weight: 1.5 pounds (View shipping rates and policies)
• Average Customer Review: 4.6 out of 5 stars See all reviews (16 customer reviews)
• Amazon.com Sales Rank: #333,334 in Books (See Bestsellers in Books)

Customer Reviews

Most Helpful Customer Reviews

26 of 28 people found the following review helpful:

5.0 out of 5 stars Experienced or inexperienced investors: Read this book and Learn, December 9, 2007

By	Cern Basher (Cincinnati, OH, USA) - See all my reviews (REAL NAME)

Whether you are an experienced or inexperienced investor this book will help you understand the limitations of the so-called market experts, the news media and most importantly, your limitations. The sooner you learn these lessons; the better off you'll be for it.

Don't rush through this 450 page book - Dick's lessons are best if left to sink in. Read the chapter on his personal background - it will give you a good understanding of who Dick is and how he came to obtain such useful information about investing.

This book is not for those who want to actively trade stocks or who are looking for the next great method for picking stocks. This book is for the person looking to become a better long-term investor and for the person who wants to learn how to use her mind and the media to her advantage.

Dick's discussions about the irrelevance of news, the role of the financial media, the under acknowledged role of luck and the utter unpredictability of the markets are spot on. His advice is so common sense, yet only obvious in hindsight. The wisdom in his book will likely prove to be timeless.

16 of 17 people found the following review helpful:

5.0 out of 5 stars One Great Book On Investing- Required Reading, December 21, 2007

By	Peter L. Coplin (Princeton, NJ) - See all my reviews (REAL NAME)

This letter which I sent to Mr. Davis says it all:

Dear Mr. Davis:

I hope that you get this message.

I am in the middle of your book, The Dick Davis Dividend, and wanted to let you know how great I think this is. It is a must for every amateur investor. I have been playing the market, and have been glued to CNBC for years. Your candor, your honesty, and your insight has made me feel so much better about investing and about myself.

The point you make about the dishonestly of TV personalities, the nearsightedness of CNBC, and the overall hype, is worth a million dollars. The fact that "no one knows", has been forgotten by me and many others, who are buffeted from day to day, by news, and talking heads. Your book has enabled me to let go, and relax. I'm sure the 2nd half will give me good ideas about what to do, with my fairly large portfolio. And yes you're quite right, about the value of inaction. After all, my worst moves have been 2nd guessing myself, and selling (Apple for one).

Thanks again. Peter L. Coplin, M.D.

He got the letter and thanked me. Now I'm thanking him. Great book.

15 of 16 people found the following review helpful:

5.0 out of 5 stars One of the best investment books ever written - really!, December 25, 2007

By	Avid reader (CO United States) - See all my reviews

There are alot of investment books out there, but few with so much candor, experience and street-smart wisdom oozing from every page. This is a great read for any investor, and an absolute MUST READ for new investors or investors looking to improve their results.

Mr. Davis takes an incredible amount of material and boils it all down to an easy to read, information and quote-rich narrative that hits all of the critically important lessons for a successful investor. Some of the chapter titles are "Six Absolutes", "Seven Core Convictions" and "Thirty-Five Nuggets", which is his way of focusing on the critical lessons for the reader.

Mr. Davis takes the long term investment approach, which puts the odds in the investors favor. He is also a proponent of portfolios of low-cost index funds designed with proper asset allocation. He includes 28 Model Portfolios from the "who's who" of indexed investing, so the reader can compare and make up their own minds. He also talks about active investing, and points to some who have been able to add value in the past.

I think Mr. Davis wrote this with the sincere goal of taking his 40yrs in the investment business and truly helping investors understand the fundamental principles of a successful investment plan. No spin, no hot tip newsletters to sign up for, no hidden infomercials here. He also goes to great lengths to point out that the average investor CAN succeed, and that there are no gurus or TV pundits that know any more (and often times less) that we do. He includes some great quotes from the greatest investors to help build his case.

Investors everywhere have been given a great gift by Mr. Davis. I believe this will become an investment classic in due course. Do yourself a favor and buy the book. It will be one of the best investments you've ever made.

Finally, a great big "Thanks, Mr Davis!" for this investment gem.