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The Secret Code of the Superior Investor: How to Be a Long-Term Winner in a Short-Term World
 
 
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The Secret Code of the Superior Investor: How to Be a Long-Term Winner in a Short-Term World [Hardcover]

James Glassman (Author)
3.3 out of 5 stars  See all reviews (32 customer reviews)


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Book Description

January 2, 2002
In these uncertain times, learn how to crack the code and become a superior investor. Don’t worry about the market, the economy, or the Fed. Instead, concentrate on what’s important: how to construct your own bulletproof portfolio by finding the best individual stocks and mutual funds for you. This timely book is your guide to volatile markets.

We live in a world saturated with the short-term: Who’s up, who’s down? Which stocks rose yesterday, which fell? Did corporate profits rise (or drop) last quarter . . . what’s going to happen this quarter? Is Alan Greenspan raising (or lowering) interest rates . . . what’s the impact?

The superior investor knows that none of this matters. He or she understands that investing is simple, but not in the way most people think. With Jim Glassman as your guide, everything about investing becomes clear. You’ll know what to do, how to behave, and how to profit—whatever the market, the economy, and your stocks are doing.

Superior investors crack the code of investing and practice a coherent philosophy that gives them the strength and confidence to do the right thing no matter which way the economic and financial winds blow. They’re relaxed—calm, cool, and collected—because the secret code provides the foundation for making superior investments, the kind that generate wealth to fund more interesting pursuits, provide for their children’s education, and fund retirement.

Superior investors
* Are not outsmarters—people who try to beat the system through inside advice and superior brainpower—but partakers. They know that the best way to make money is to share in the profits of successful businesses.
* Own a portfolio that looks like the U.S. economy ten years from now.
* Know the kind of investments they should be making (e.g., pharmaceuticals, for-profit education, mind-numbingly boring but extraordinarily profitable companies) and those they should not (e.g., corporate bonds).
* Understand when to start selling the stocks they’ve bought: almost never . . . only when the fundamental reasons why they bought in the first place change.
* Understand how to pick the companies that will make them superior investors.
* See that bear markets are for buying.

We live in a world of increasing uncertainty, but by practicing the principles of The Secret Code of the Superior Investor day-in and day-out for years on end, your future will indeed be superior.

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Editorial Reviews

Amazon.com Review

Has the stock market bottomed? Will the Dow and NASDAQ do better this year? While media outlets such as CNBC and CNNfn love to fill their airtime with these kinds of questions, James Glassman has a hard time finding the upside to such pursuits. He suggests that investors would do better by turning off their TVs and looking for real value instead, and in the The Secret Code of the Superior Investor he shows how. Glassman organizes his advice into 47 bite-size chapters that cover everything from the types of companies you should invest in ("solid citizens," pharmaceuticals, for-profit education) to what you as an investor should pay attention to (cash flow) and ignore (the latest Fed gossip, CNBC). At the heart of Glassman's "secret code" is the belief that stocks are the best long-term bet there is; the trick is finding solid companies to invest in and then sticking with those companies through thick and thin. This book is for anyone (especially those getting over the recent technology boom and bust) who is looking for a reliable and balanced approach to managing a portfolio of stocks and bonds. Highly recommended. --Harry C. Edwards

From Booklist

In an era when public sentiment hangs on the daily gyrations of the stock market, Glassman, coauthor of Dow 36,000 (1999), holds firmly to the staid principles of long-term investing. His "Secret Code" is a repackaging of those well-worn Wall Street mantras: buy and hold good companies for the long term, diversify, and don't try and time the market. It all makes a great deal of sense as long as the recent market swoon is just another pause in a perpetually roaring bull market, rather than the harbinger of a drawn-out bear the likes of which Japan has seen for more than a decade. But Glassman is sticking to his Dow 36,000 theory and believes that stocks are cheap right now; he doesn't seem to care that P/E ratios remain historically high, profits are dropping, and layoffs are rampant. He's certainly correct that chasing the latest hot stock or mutual fund is the wrong approach. Jittery long-term investors looking to take comfort will find it in the confidence of this perennial bull. David Siegfried
Copyright © American Library Association. All rights reserved

Product Details

  • Hardcover: 336 pages
  • Publisher: Crown Business; 1st edition (January 2, 2002)
  • Language: English
  • ISBN-10: 0812991087
  • ISBN-13: 978-0812991086
  • Product Dimensions: 9.5 x 6.2 x 1.1 inches
  • Shipping Weight: 1.2 pounds
  • Average Customer Review: 3.3 out of 5 stars  See all reviews (32 customer reviews)
  • Amazon Best Sellers Rank: #2,032,881 in Books (See Top 100 in Books)

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Customer Reviews

32 Reviews
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4 star:
 (6)
3 star:
 (4)
2 star:
 (1)
1 star:
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Average Customer Review
3.3 out of 5 stars (32 customer reviews)
 
 
 
 
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Most Helpful Customer Reviews

24 of 24 people found the following review helpful:
5.0 out of 5 stars Enjoyable and Important to Read, January 9, 2002
By 
Rick Robillard (Virginia Beach, VA) - See all my reviews
This review is from: The Secret Code of the Superior Investor: How to Be a Long-Term Winner in a Short-Term World (Hardcover)
In a world that starts each business day with someone broadcasting from the floor of the New York Stock Exchange as if investing were some sort of a horse race, this book is much more than enjoyable. It's important to read.

Glassman takes the fear, uncertainty and doubt out of investing heightened if not created by the broadcast media's constant focus on what the fed, economy or Osama Bin Lauden will or won't do next and what it all means for the price of stocks tomorrow. He deals with the implied "action imperative" using what amounts to a logical, easy to read and understand three step process. First, he provides basic, factual and well-researched information that every investor should know. Second, he details a sound and time-tested investment strategy that anyone can understand. Third, he provides the information sources, tips and techniques to execute against that strategy. The sort of how to information that moves concept to action. Along the way he explains what is important to consider and to ignore. He also offers some really good advice on things to avoid.

The Secret Code of the Superior Investor has the rare qualities of being informative, enjoyable and actionable. The content is as superb as the writing. I am 53 years old, financially independent and retired. I have been an investor for nearly 30 years and read many books on investing. Take it from me. Glassman nailed it! Turn off the TV and read this book.

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17 of 18 people found the following review helpful:
5.0 out of 5 stars A valuable overview of the investment landscape..., January 11, 2002
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This review is from: The Secret Code of the Superior Investor: How to Be a Long-Term Winner in a Short-Term World (Hardcover)
Contrary to what some may think, there is a secret to good investing, and Glassman does a good job of explaining it. It's an open secret, to be sure, but one most so-called investors ignore: generating cash (for example, through day trading and other high-turnover practices) does not lead to the accumulation of wealth. Only through a disciplined approach to investing, involving (1) the accumulation of quality stocks, mutual funds, and/or other preferred financial assets, and (2) patience that allows time to let these investments work for you, will it be possible to achieve your financial goals. Following the heady, market-drive craze of the late 1990s, it's a secret that even the most seasoned investor would do well to reconsider.

No question, it's the new or inexperienced investor who has the most to gain from a read of this book. For one thing, Glassman's review of the many investment vehicles available today provides, in one readily accessible volume, the information needed to make intelligent decisions regarding asset allocation. And the explanations that attend the presentation are written in language that even the novice will understand.

If you've already made your millions and view playing the market as a pastime, this book is not for you. But if you believe that there must be a better way to select from among the many investment theories touted and to identify, and invest in, preferred investment vehicles appropriate to your age and temperament, purchase of The Secret Code of the Superior Investor may well be among the best investments you could make.

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34 of 40 people found the following review helpful:
3.0 out of 5 stars Further Popularization of Popular Stock Investing Books, January 2, 2002
By 
Donald Mitchell "Jesus Loves You!" (Thanks for Providing My Reviews over 109,000 Helpful Votes Globally) - See all my reviews
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This review is from: The Secret Code of the Superior Investor: How to Be a Long-Term Winner in a Short-Term World (Hardcover)
This book is for people who are totally unfamiliar with the "buy and hold" school of stock investing based on selecting superior companies with outstanding management. The material in it is almost totally derivative from the research and experiences of others available in more detailed popular books.

The key points are that (1) you should know yourself, so that you invest in ways that fit your emotional makeup when stocks are doing poorly; (2) time is money, and you should start buying stocks at the youngest possible age; (3) pick stocks by the caliber of the company and its management; (4) own stocks in diversified portfolios to avoid excessive fluctuation risk; (5) risk of stock price loss is reduced by holding stocks longer; (6) avoid trading stocks -- buy and hold instead; (7) ignore what the media says about stocks (unless the information brings into doubt the reason why you own certain stocks); (8) ignore the Federal Reserve; (9) for short-term investments buy high quality bonds; and (10) pay attention to reducing expenses, taxes, and outperforming inflation. In support of these points, well-known studies and books are cited such as those by Jeremy Siegel (Stocks for the Long Run), about Warren Buffett (and other famous investors like Phil Fisher, Philip Carret, and Sir John Templeton), and by Ben Graham.

Mr. Glassman is one of the authors of the theory that stocks are way undervalued and the Dow should soon trade at 36,000. Although most professionals and academicians have questioned his theory, Mr. Glassman stands behind it in this book.

As someone who reads lots of books about stock investing, the only new thing I learned in this book was the Leslie Douglas Theory involving purchasing equal amounts of the 5 largest NASDAQ stocks each year (which produced a ten year gain of 39.1% versus 15.8% for the Dow). So for me, this book was a big waste of money.

I also thought that a lot of the material was wrong. Basically, you are encouraged to buy managed stock mutual funds. Over 10 years, hardly any of these will outperform the market indices. As mutual funds are required to say, past performance is also no indication of what future performance will be. You would probably be better off owning indexed mutual funds. The same subjects are covered much better in Common Sense on Mutual Funds by John Bogle, and you can learn more about the virtues of indexed mutual funds in that book.

So, I suggest that you skip this book. You would learn more by reading the popular books which it is based upon than by reading this book.

May all of your investments help you reach your financial goals . . . and always sleep well at night!

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Inside This Book (learn more)
First Sentence:
TODAY, INVESTORS ARE DESPERATE for certainty in an uncertain financial world. Read the first page
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Value Line, Wall Street, Washington Post, General Electric, First Commerce, Merrill Lynch, Tootsie Roll, Warren Buffett, Dow Jones Industrial Average, Federal Reserve, Stock Index, Dell Computer, New York Stock Exchange, Benjamin Graham, Ibbotson Associates, General Motors, Peter Lynch, Rowe Price, Time Warner, Berkshire Hathaway, Cisco Systems, United States, World War, Anne Scheiber, Automatic Data Processing
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