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The Neatest Little Guide to Stock Market Investing, 2010 Edition Paperback – December 29, 2009
There is a newer edition of this item:
Getting Down to Business & Investing
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More About the Author
Every Sunday morning he sends out The Kelly Letter. It highlights the latest coin-toss forecasts being foisted on the unsuspecting by "z-vals," a shorthand introduced in 3Sig for zero-validity pundits, proven to be wrong half the time but still blathering on a regular basis. The letter also runs the original 3 percent signal plan and two permutations, providing subscribers with a clear (and usually humorous) look at financial markets. Yes, 3Sig is still running circles around the z-vals with just a single quarterly rebalance to its famous signal line, no forecasting required -- or desired.
He graduated from the University of Colorado in 1993 with a BA in English, but not before a professor told him that he would never succeed as an author because he "lacked a basic command of the English language." Luckily, IBM disagreed and hired Jason as a technical writer at its Silicon Valley Laboratory in San Jose, California. Once income from his freelance writing matched his income from IBM, Jason left corporate life to become a full-time freelance writer. About IBM hiring him for the only "real" job he's ever had, Jason wrote in his book "Financially Stupid People," "I keep a special smile for Big Blue because of that break. It was the only company that believed in me. I never knew the meaning of the term 'competing offer.'"
One of Jason's Japanese publishers, Shueisha, brought him to Tokyo on book tour in 1999. He took that opportunity to visit his old high school exchange student friend, and wrote a funny article about the experience. That article remains one of Jason's most widely read. It's still on his site (short link http://v.gd/12years). Japan went straight to Jason's heart, and he decided to live there. He rented out his home in California and moved to Sano, Japan in 2002 for what he thought was going to be a one-year stay. This many years later, he still lives and works there.
After the March 2011 earthquake and tsunami, he started Socks for Japan, a volunteer organization that hand-delivered 160,000 care packages from around the world to survivors. See photos and read reports about the effort at jasonkelly.com/helpjapan.
In addition to writing new books and The Kelly Letter, he's an investor in Red Frog Coffee in Longmont, Colorado, a delightful shop managed by his sister and business partner, Emily. It was voted Longmont's Small Business of the Year in 2014.
His website is at jasonkelly.com.
Top Customer Reviews
The author, Jason Kelly, starts by explaining "Why Stocks are Good Investments". Jason points to strong and true facts that show that owning stocks is one of the best ways of increasing wealth over time. He explains how you make money in stocks and goes into the difference between "total return" and "capital appreciation". Jason then explains why companies even sell stocks and how that works. If you are new to stock investing or trading and you do not have a clear understanding of this then you should read this. There is a quick section also about how to choose a broker to help you buy and sell stocks.
Jason then goes into "How to Evaluate Stocks". He explains the difference between value and growth investing. Jason does a great job of defining and explaining all of the most common terms in evaluating the fundamentals of companies including: current ratio, EPS, ROE, Net Profit Margin, P/E, and P/S. Then he explains common terms for evaluating the technicals of the stock price including: SMA, MACD, RSI, relative price strength, and volume. Knowing and understanding these terms is a must for anyone who wants to invest or trade in individual stocks.
After reading the 1st 3 chapters you will know half the things they teach you in a 4 year Business Degree. Believe me, I have a degree in Business.
Then Jason tells you "How the Masters Tell Us to Invest". Here he summarizes how each of the best traders and investors of all time advise individuals to build wealth.Read more ›
Occasionally someone will ask how I managed to achieve such gains in a recession, and I tell them how I follow fundamentals- value, potential, risk assessment, and so on. I'm amazed at the number of people who think that's crude strategy... but yet to find such a person who has done as well.
One of the reasons some "experienced" investors don't do as well as they should is that they forget the fundamentals, or start believing fundamentals are negotiable or don't apply to them because of their accumulated wisdom. Experience can get in the way if you start thinking that doing something for several years automatically makes you good at it, even when your gains are say you're not. Hogwash can get in the way too, and the investment world has plenty of that. It hides the important stuff, and distracts investors from what really makes the differences.
Jason is one of the very few investment writers who is clear and concise, and never loses sight of the fundamentals of investing. No hogwash! He gets to the point clearly and concisely without adding copy designed to impress or confound you with his wizardry. His books are actually designed to help investors understand and profit... while most books are designed to sell, and make the author profit. Don't expect the fancy stuff, the confusing techno-babble. Expect the core information that allows you to understand and remember the fundamentals, to grow and become better and better. One of the best investment bucks you will ever spend.
In the section on evaluating stocks the author advocates using classical measurements such as PE ratios, price/book etc. My experience has shown that PE ratios are not the cause of a stock performance but the result of it. That is, stocks already experiencing high growth tend to have high PE ratios and if you used PE ratios as one of your criteria you would have missed the best stocks in recent years. I have found that a combination of stock holders equity and retained earnings is a better measure of future performance. A steady increase in stockholders equity with 15% year over year growth in retained earnings is usually a better indication of future price advance.
I was somewhat disappointed with the lack of depth in the section on technical analysis . These days holding times for stocks are becoming much shorter making technical analysis a major part of an investors decision on timing a stocks purchase.
A major part of the book lists resources for investing. In my opinion this was somewhat of an overkill since these resources can be easily found just by doing a simple internet search.
You can learn some basic investing information from this book but before acting on any specific stocks, I will be sure to read other more advanced books first.
That being said, I read this book in 2 days. Mr. Kelley lays everything out in a way that is easy to understand for those of us who aren't affluent to all the market lingo. Once I got started, I wasn't overwhelmed with complex terms or formulas. I found myself not wanting to put the book down because I was learning something new and personally applicable after each page.
There are 8 sections to this book:
1. Speak the language of stocks - in this section the basics are discussed ranging from what the stock market is, basic terminology and valuation, why to invest and how to evaluate stock.
2. How the masters tell us to invest - this section breaks down the philosophies (in everyday, normal language) of greats Graham, Fisher, Buffett, Lynch and O Neil. You'll be amazed at how simple their investing outlook is)
3. How history tells us to invest - this section takes a few of the critical basics from section 1 and expands on their importance. It also delves into value and growth investing and how to use both to your advantage
4. Permanent portfolios - this is my favorite section. It gives a few strategic examples on how to invest in regards to the dow without having to research hundreds of stocks. The results are broken down by year and performance. I think this is very useful to the investor that is still a little intimidated by trading his/her own individual stocks and wants a guideline ot template to use.
5. Get ready to invest - this section gets you ready to pick a brokerage and get started. It contains a lot of info you probably know, but some you didnt
6. Research the riches - this section shows numerous ways and places to find stock data and how to use it
7.Read more ›
Most Recent Customer Reviews
If you are a beginner and want to find out more regarding the stock market i believe this book will deliver. It's a great starting point. I recommend it!Published 12 months ago by A simple subjective reviewer
Really Easy Read, I'm surprised at the number of pages this book has to be as simplified as it is. I like when Authors use examples and explain the same topic multiple ways, to me... Read morePublished on October 30, 2013 by D.Jones