The Vital Few vs. the Trivial Many : Invest with the Insiders, Not the Masses [Paperback]

George Muzea (Author)

Book Description

ISBN-10: 0471681954 | ISBN-13: 978-0471681953 | Publication Date: October 29, 2004 | Edition: 1

Filled with in-depth insight and expert advice, The Vital Few vs. The Trivial Many will open your eyes to a new way of looking at the investment world, especially the stock market. You'll discover how to look past media hype to discern what the Vital Few or corporate insiders—those who know their companies best—are doing. By explaining which information is accurate and valuable, as opposed to that which is misleading and financially hazardous, investment professional George Muzea will show you how to successfully and intelligently evaluate the stock market and find valuable gems that have yet to be discovered by the masses.

Editorial Reviews

From the Back Cover

Praise for The Vital Few VS. the Trivial Many

"George Muzea's unique approach and market savvy make this a must-read for any investor who is serious about trying to understand what is really going on inside companies. He is hands-down the best analyst of insider activity in the business."
—Jon Jacobson
Managing Director, Highfields Capital

"George Muzea is an insider trading whiz. George sells his research to the cr?me de la cr?me of institutional investors. His market calls have been uncanny. Knowing men like George is one of the perks of my job."
—Herb Greenberg
CBS MarketWatch and Editor of Herb Greenberg's RealityCheck

"Most investors lose money in the stock market because of a lack of discipline. George Muzea provides a distinct course of action for those who want to win instead of lose. Having followed the market and Mr. Muzea for a number of years, I have no doubt that those who read this book would become better investors."
—Stanley Druckenmiller
General Partner of Duquesne Capital

Filled with in-depth insight and expert advice, The Vital Few vs. The Trivial Many will open your eyes to a new way of looking at the investment world, especially the stock market. You'll discover how to look past media hype to discern what the Vital Few or corporate insiders—those who know their companies best—are doing. By explaining which information is accurate and valuable, as opposed to that which is misleading and financially hazardous, investment professional George Muzea will show you how to successfully and intelligently evaluate the stock market and find valuable gems that have yet to be discovered by the masses.

About the Author

George Muzea has nearly forty years of experience as an investment professional. He is founder and President of Muzea Insider Consulting Services LLC, which advises well-known money management firms and whose impressive client list includes famed speculator George Soros's right-hand man, Stanley Druckenmiller, and other former Soros Fund Management partners. Muzea is frequently quoted in both print and broadcast media and is a popular speaker at investment forums nationwide.Visit George Muzea at www.vitalfew.info.

Product Details

• Paperback: 212 pages
• Publisher: Wiley; 1 edition (October 29, 2004)
• Language: English
• ISBN-10: 0471681954
• ISBN-13: 978-0471681953
• Product Dimensions: 9.1 x 6.1 x 0.6 inches
• Shipping Weight: 9.1 ounces (View shipping rates and policies)
• Average Customer Review: 4.4 out of 5 stars  See all reviews (22 customer reviews)
• Amazon Best Sellers Rank: #196,626 in Books (See Top 100 in Books)

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Customer Reviews

Most Helpful Customer Reviews

20 of 20 people found the following review helpful:

5.0 out of 5 stars Excellent, March 13, 2005

By 

Michael Bird (Yorba Linda, CA United States) - See all my reviews
(REAL NAME)   

This review is from: The Vital Few vs. the Trivial Many : Invest with the Insiders, Not the Masses (Paperback)

Why do so many people lose money in the stock market? It's really simple, they don't read and study books like this one that give such logical and simple advice. The average person simply doesn't spend the time to understand what they are doing and many of those that follow the markets more closely get overly optimistic and allow emotion to take control.

Mr. Muzea writes in a basic and easy to understand style and includes many short anecdotal stories to flavor and explain his reasoning. I found the book to be forthright and entertaining.

His basic premise is that large investing insiders can give huge clues to the over or under valuation of a stock and by following their lead, along with some basic technical analysis one can greatly increase his chances of selling near tops and buying near bottoms. He runs a service and newsletter that gives up to date information and advice, however I didn't feel like this book was at all a selling tool for his service (like I've found in some other investment type books). This book can stand on its own and one quick reading can easily make an investor money and/or save an investor from loss.

The author has developed a method he calls the "Magic T" it's not a hocus pocus for divining what stocks will win and which will lose, but rather a basic decision making device (much like a pro and con sheet that is a bit more advanced). How he applies this to investments is, by its self, well worth the price of the book.

All in all I give a strong recommendation for this book to any investor or trader that is looking to improve their profits as well as to any that are considering entering the market for the first time.

18 of 18 people found the following review helpful:

5.0 out of 5 stars Rated 6 STAR, December 4, 2005

By 

Lewis Chong (Hong Kong) - See all my reviews
(REAL NAME)   

This review is from: The Vital Few vs. the Trivial Many : Invest with the Insiders, Not the Masses (Paperback)

Most of the professionals and causal investors are still trying to find a proven mathematical formula or technical system to make money in the financial market. You will be disappointed if you are trying to do the same with any books.

When it comes to investing, I don't think such a formula or system exists. Just look at how Nobel Prize winner and "genius" failed at LTCM. Human nature plays a key role in the financial market, and we are far form coming close to develop a mathematical model in human thinking. Thinking participants keep the rule of the game changing. Therefore, the only certainty is change.

The key objective of this book is to present a systematic approach to improve our probability of success in identifying safe entry and exit points in the financial market. We have to bear in mind that the method only enhances our probability of success, but there is still no certainty.

With the help of Muzea's methodology, I identified an opportunity to short Euro in March 2005, I cashed out a large part of my energy position when oil hit $70 in Sept 2005, and I stayed away from the stock market during brutal correction in Oct 2005. The tax loss buying strategy in Appendix B also helped me to make a quick 7% profit between Oct and Nov of 2005. I think the result speaks for itself.

All I did was to find out if there were divergences between the actions of the Vital Few (insiders) and that of the Trivial Many (masses). Information is always in the divergences.

The Magic T method highlights in Chapter 8 also helped me to make career decisions. The essence of Magic T method is to remove emotional influence when it comes to decision making, be it financial, business or personal. I just wish my father had taught me this method 20 years ago.

I personally have a few emails exchange with George Muzea. He has a genuine interest in helping financial novice like me to become a better investor. I think he is a noble man.

The money I invested in this book has paid off a thousands time over in a matters of months. I have read over 100 books in investment, but this one comes at the top of my list. I actually re-read the whole book every few months to refresh my memory. I want Muzea's wisdom to be ingrained in my mind so that it becomes automatic. I just ordered a spare copy as my old one has worn out a bit. Unfortunately, it does not come with a hardcover edition.

Muzea's wisdom is timeless and an all-time classic book!

I rated it a 6 Star.

12 of 12 people found the following review helpful:

3.0 out of 5 stars Not the book for everyone, August 2, 2005

By 

Monson Marukatat (Bangkok, Thailand) - See all my reviews
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This review is from: The Vital Few vs. the Trivial Many : Invest with the Insiders, Not the Masses (Paperback)

When I read a book about contrarian investing some twenty years ago, I was hooked by the concept. But to execute it as a fund manager, I found most books in this category failed to address the how-to part. The Vital Few does just that. It provides a tool call "The Magic T" which a lay investor can "systematically" make a decision without requiring any knowledge in investment. By the way, according to the author, having a basic background in technical analysis will help to confirm the result.

The book's idea is simple. It was written in an autobiography style with some "hard-core" substances at the very last chapters. For those who want to have a simple tool to beat the stock market, this is a book for you (whether the Magic T is time-tested or not is another issue). For sophisticated investors, the Magic T might be another item in their decision tool boxes.

One caveat for academic readers: you will not find anything theoretical inside. There is nothing in the book that you can use as a reference in your paper. In fact, if you are not an investor, you might find reading of this book a waste of your time.