Customer Reviews

Al Frank's New Prudent Speculator: The Master of Value Investing Shows You How To Pick Winning Stocks, Revised Edition

5 star:		(3)
4 star:		(0)
3 star:		(1)
2 star:		(0)
1 star:		(1)

 

 

Unlike some books, were authors write about great investors or skilled authors with little practical experience present their opinions, Al Frank is a great investor and a skilled author with lots of practical experience. Thus, the book is a pleasure to read, more comprehensive than most and presents conclusions drawn from decades of value investing in common stocks.

With a folksy, down to earth approach, the author goes over what's most important for a long term investor: Patience, Stock Selection, Diversification and Risk Management. Important financial ratios are also explained and the use of margin is reviewed in great detail. In fact, there are very few investment books which deal with margin as well as this one. This is probably because not many investment book authors have as much experience in this area as Al Frank. However, this is not a get rich quick book, but instead the presentation of a logical, long term seasoned strategy.

The book is a breath of fresh air, providing a solid value-based strategy for investment togethr with a sound intellectual justification for it. In my more than thirty years of investing life encompassing a bevy of strategies and literally hundreds of books on investment, I have not come across a professionally trained philosopher writing about investment. Al Frank is that investor philosopher. If you want an intellectual challenge coupled with a proven strategy of investing in stocks, read this book. Think, profit and enjoy!

Basically this is typical value investing with a small cap bent, though he will buy value at any price. Chapter two covers this and the rest of the book will put you to sleep. He's long winded, add small type and over 350 pages... it was a struggle to finish.

Much of it could have been left out. 50 pages are a review and comments of past years portfolios. Another chapter is on his pet peeves, one on funds, one defending use margin and one on Tech analysis (he doesn't use it for individual issues, but he looks at a few general market indicators to guage risk and overbought levels in the market). Except for a chapter 9 analysis of Ford, there isn't much about selection besides chapter 2.

His returns were made using full margin. His best contibution it to say don't be too rigid on the numbers, be flexible. Usually stocks will be undervalued on a couple measures but not all of them. I'd recommend any other book on value investing.

To be honest I have not read this copy fully yet. I read previous library versions and bought this for reference.

THE THESIS OF THIS BOOK IS THAT YOU BUY THE MARKETS WORST STOCKS AND HOLD THEM FOR AT LEAST FIVE YEARS HOPING THEY WILL COME BACK TO GLORY. hE BUYS STOCKS THAT HAVE LOW P/E'S LOW PRICE TO SALES AND LOW PRICE TO BOOK. USUALLY THESE STOCKS HAVE LOADS OF DEBT, TERRIBLE PRODUCTs OR ARE IN A TERRIBLE INDUSTRY. eXAMPLE STEEL
Most of the stocks he picks are terrible and will never make you any money and are the riskiest in the market.Example of stocks he tells you to buy in his newsletter kmart, wcom, conseco etc.
all bankrupt. Once in while he gets lucky and has a big winner. Don't count on this. If you want to lose big money read his book and follow his insane advice on the use of margin.