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This review is from: Rule #1: The Simple Strategy for Successful Investing in Only 15 Minutes a Week! (Hardcover)
I ordered this book sight unseen from Amazon because of the advanced reviews. If I had seen it first, I *might* not have bought it. But I'm still glad I have it anway.
What I really like about this book is that it explains key financial figures for calculating the future worth of a company and for deciding what a good price would be to pay for the company today (in terms of the paid stock price.) This aspect of the book is invaluable and is easily worth the cost of the book.
What I don't like about the book is the presumption that you can just sit down, at any given time, and with a little research, quickly find a company that's on fire sale and that will safely reap 15% a year or more, for many years out. It takes special circumstances to find companies in such positions. One of the author's inspirations, Warren Buffet, has not found many such opportunities for years now, which is why he is sitting on 46Billion in cash. He can't find anything to buy that's cheap enough and that would meet the author's criteria!
So the author is disingenuous in suggesting that you, after reading the book, and putting in a few minutes a week looking at web sites, can discover a gem that the greats like Buffet haven't been able to find. Bargains like this don't come along everyday. But they do come along over time.
And that's why I ended up really liking this book. The author's instructions on how to find such gems thrown into the trash by the market, when such situations occur, is the clearest, best, and simplest description I've come across (and I have no less that 3 sagging shelves of investment books.) I'm going to use the information the author gave so that, when the market tanks, say, I can pick up some of the great companies he describes and KNOW, because of his formulas, that I'm buying a jewel at a bargain basement price. I'd been looking for that information for some time, thus, in the final analysis, I really do value this book.
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Showing 1-5 of 5 posts in this discussion
Initial post: Nov 16, 2006 12:18:33 PM PST
J. Isbell says:
I disagree with you about Buffett. The main reason he cannot produce the results that got him where he is (and really, is being stuck at $46B such a bad problem to have?) because he simply cannot find companies, or deals big enough to move the amount of cash he has without greatly affecting the price. I think you would do better with this book if you did some research, as you obviously did not before speaking about Buffett.
Posted on Jan 13, 2007 8:42:39 AM PST
Tool Connoisseur says:
You say "What I don't like about the book is the presumption that you can just sit down, at any given time, and with a little research, quickly find a company that's on fire sale and that will safely reap 15% a year or more, for many years out."
No where does Mr. Town say this. In fact he says just the opposite. He gives you the tools to try to find these stocks, and specifically says wait until you find the right one(s), if you can. Generally, you can find them. It's been quite helpful for me (I found them).
Posted on Sep 4, 2007 1:29:49 PM PDT
Mark Twain says:
In fact, the author quotes Buffett saying that if were investing a small amount of money (like you and me), he, Buffett could make 50% a year! Buffett's problem is that there are not many opportunities for him, using the Graham and Dodd model to invest billions.
Posted on Feb 10, 2008 10:10:23 AM PST
No Name says:
You've obviously not thought this through. With $46B he's basically investing more money than most mutual fund companies. So he has the same problem as they do. I.E. he is an institutional investor.
Posted on Apr 17, 2008 10:28:01 AM PDT
Bored and Boring says:
I agree, in order to turn $1000, into a million you'd have to make an average of 300% return 5 years in a row in a TAX FREE account. To do so with taxes
would have to be something like 500% each yr for 5 yrs.
Extraordinary claims demand extraordinary evidence. I'd like to at least know how he did it.
The guy who wrote "Rule the Freakin' Market" made similar claims with no explainations of how.
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