Top critical review
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This book has a lot of math issues
on August 1, 2012
I have just read through the first chapter -- Marc Lichtenfeld's philosophy is readily available online, google him -- but he is playing a lot of math 'tricks' on the reader. I think it is page 14 where he says to the effect that 12% returns are very easy, just look at Southern Co. for example, it returned 193% in ten years. Great!
Perhaps he expects the average reader will say, hmm... 193% over ten years, that 19.3% return per year, WOW. Just 12% should be SIMPLE!
But no. Remember compound interest? Compound 12% for 10 years: $100 becomes $112, which becomes $125.44, $140.49,....after 10 years you should be at $310.58, or up 210%. .... so in fact, even his examples just miss his own targets. I can only imagine what his typical results look like.
Anyway, the philosophy is sound, just read the book with a calculator handy and don't get over-excited at his results.