Product Description
"Although Reminiscences...was first published some seventy years ago, its take on crowd psychology and market timing is a s timely as last summer's frenzy on the foreign exchange markets."
—Worth magazine

"The most entertaining book written on investing is Reminiscences of a Stock Operator, by Edwin Lefèvre, first published in 1923."
—The Seattle Times

"After twenty years and many re-reads, Reminiscences is still one of my all-time favorites."
—Kenneth L. Fisher, Forbes

"A must-read classic for all investors, whether brand-new or experienced."
—William O'Neil, founder and Chairman, Investor's Business Daily

"Whilst stock market tomes have come and gone, this remains popular and in print eighty years on."
—GQ magazine

First published in 1923, Reminiscences of a Stock Operator is the most widely read, highly recommended investment book ever. Generations of readers have found that it has more to teach them about markets and people than years of experience. This is a timeless tale that will enrich your life—and your portfolio.Amazon.com Review
Stock investing is a relatively recent phenomenon and theinventory of true classics is somewhat slim. When asked, people in theknow will always list books by BenjaminGraham, Burton G. Malkiel's A Random Walk Down WallStreet, and Common Stocks and UncommonProfits and Other Writings by Philip A. Fisher. You'll knowyou're getting really good advice if they also mentionReminiscences of a Stock Operator by Edwin Lefèvre.

Reminiscences of a Stock Operator is the thinly disguisedbiography of Jesse Livermore, a remarkable character who first startedspeculating in New England bucket shops at the turn of the century.Livermore, who was banned from these shady operations because of hiswinning ways, soon moved to Wall Street where he made and lost hisfortune several times over. What makes this book so valuable are theobservations that Lefèvre records about investing, speculating,and the nature of the market itself. For example:

"It never was my thinking that made the big money for me. Italways was my sitting. Got that? My sitting tight! It is no trick atall to be right on the market. You always find lots of early bulls inbull markets and early bears in bear markets. I've known many men whowere right at exactly the right time, and began buying or sellingstocks when prices were at the very level which should show thegreatest profit. And their experience invariably matched mine--thatis, they made no real money out of it. Men who can both be right andsit tight are uncommon."

If you've ever spent weekends and nights puzzling over whether to buy,sell, or hold a position in whatever investment--be it stock, bonds,or pork bellies, you'll be glad that you read thisbook. Reminiscences of a Stock Operator is full of lessons thatare as relevant today as they were in 1923 when the book was firstpublished. Highly recommended. --Harry C. Edwards ... Read more

Customer Reviews (215)

Finally not loosing money
Seems like we all have similar histories. Talking about us that risk our own money. Livermore knew that market action is the only thing that counts. Forget about the rest. Finally I am making money.

Waste of time
The one character relevant to actual successful trading, as practiced in this century, makes a brief appearance on p. 61.

"There is an extremely able man, a former partner of a well-known Stock Exchange house, who is really a trained mathematician. He is a graduate of a famous technical school. He devised charts based upon a very careful and minute study of the behavior of prices in many markets ...He went back years and years and traced the correlations and seasonal movements - oh, everything".

Reassuringly, the ancient quant meets his doom.

"They tell me he won regularly - until the World War knocked all precedents into a cocked hat. I heard that he and his large following lost millions before they desisted".

Of course, Larry Livingston gets wiped out more than once - unsurprisingly, given his "all in" approach to risk management. (I wonder if the five-star reviewers, including the one saying that Jesse Livermore was to trading what Newton was to physics, would invest with Jesse if they had a chance). However, the fact that he gets back on his feet does not let one dismiss Livingston as a lucky gambler. What's his secret?

Use "Search inside" feature to read pages 84-85 and 121-123, then consider two questions: (a) Could the strategy work for a small trader, in a modern stock market? (b) If it did, wouldn't the thousands of readers, and their employers, be using it already, causing it to stop working? Besides, now and then Livingston puts his strategy aside, e.g. by trading on his view against the trend, or just acting on a hunch.

Livingston says he is keen to learn from mistakes, but his blow-ups are not followed by self-critical post mortems. (See pp. 23, 41 and 165, for example. Page 169 mentions a four-year "lean" period of losses and eventual insolvency, but we never find out what kept Livingston from making money then). The self-congratulatory stories keep coming, and quickly become tiresome.

If you are thinking about trading on your own, please google "terrance odean" and read a few papers by the Berkeley professor. If you must have something written before WWII, consider "Where Are the Customers' Yachts". "Reminiscences" is an overrated fictionalized memoir overdue for retirement.

Greatest book on stock trading ever written
This book was written in 1923 and to this date remains one of the best books on stock investing ever written. Its a fun read. I have listened to this book as an audio book as well, and I have to say that Rick Rohan has one of the best voices in audio books. You can listen to a preview at [...] and decide for yourself. (You can click on the audio icon below the symbol for book and listen to audio clip)

The book is still relevant because the stock market is human nature on daily display and human nature will never change.

Some of the priceless pieces of advice in this book are -

Study general conditions affecting the market or economy
Study the tape (stock prices) to decide when to begin to buy a stock
Begin to accumulate your line at exactly the right time which Larry Livingston (pseudonym for Jesse Livermore) refers to as pivot points
Let the market tell you when to take profits or cut your losses short
Be continuously bullish in a bull market 'Its a bull market you know'

I could go on and on but then I will never finish.

The more things change
Although this book was written in 1923, much of what it contains is ageless advice for investors.As the protaganist Livermore himself says in the book, nothing has ever really changed in the stock market.As evidence, he cites anecdotes from as early as 1867! There is nothing specific in here for anyone, and little of fundamentals, but for those interested in the human or psychological side of the market, this book will prove invaluable. Livermore was one of the greatest traders of the early part of this century...mostly known as a short trader.He was a kind of momentum trader before that term even existed. The book consists of series of observations and stories by Livermore related to his friend LeFevre, the author.You will feel as if you are sitting across the table from Livermore drinking coffee or beer, enjoying many tales of how to trade in the market. Although short on specifics, the book is chock full of advice on how to govern oneself and anticipate movements in stocks. Some examples....Livermore never took tips from anyone else, and never trusted them.He states many times that each investor should develop their own system, and stick to it.The sticking to it is the most important part...as evidence he cites a colleague with a system radically different from his, who was also successful, who went away from his own system at a critical time and lost millions. He also gives the readers a great exposition of his own system, which started out strictly as what we might call day trading on technical indicators (what he calls "watching the tape") but was greatly strengthened when he also learned to factor in fundamentals (what he calls "the big picture").This is a very good, well-written read with many amusing anecdotes as well, such as the time his wife tried to trade without his knowledge or the tale of caution regarding two traders who insisted on believing "inside tips" to their great harm. Livermore at the end of the day was more speculator than investor (as he freely admits), and he never could seem to quit.He made millions and lost them over and over again...although when he died he was worth $5 million, we learn from this book that this was only because he put a few million in trust funds that he was not allowed to touch under any circumstances!Although he suffered from a "gambling fever" approach that he never could quite escape, he did in fact "know himself" well enough to make millions, over and over again repeatedly.For those wanting well-written insight into the human side of the market sprinkled with interesting and often amusing anecdotes, this is a MUST READ.

This Book Made Me Money
In the awkward and werid markets we've had in the last year and half or so, I decided i would start investing in stock markets after doing it for awhile when I was in high school and stopping for three years in high school.I was no amateur, but I was no professional either.I started off with 2 thousand dollars and got killed in the market, buying long and selling it after a point or two, holding onto a stock as it took a nose dive, consolidating, all the stuff I'd trained myself not to do when I was working with a professional trader "a friend of my mother's," after school on my senior year.I picked up this book, it was always in my collection, but I wasn't paying attention to it, and hadn't read it.

I read it straight through.All the happening advice, all the small anecdotes, eventually built up my ability to understand the market.One statement in particular came striking back at me, with the stock STEC which I got into at 23, watched it spring up to 43 (mind you, 8 other stocks had failed by this point, but I'd learned to cut my losses short) and sold it at 38.I knew there was something wrong about it, it's moves jerky, it's actions wrong.It was unhealthy, something was up, the owners had dumped their stocks a month before, and I remembered what Jesse Livermore said, "If I shouldn't be long in it, I should be short in it," or something to that extent, and I bought puts in the stock at twenty four, after it broke it's 28 low, and I watched it drop in a very short time to 14 dollars amidst scandal and then inch down to 11.It was a great day for me and it was all because i read this book and remembered those little ideas (though lucky for me the trade turned out better than his, when he was taking someone elses advice).

I made enough money to pay for my last year of college.A few other books I read:

Stan Weinstein's Secrets for Profiting in Bull and bear Markets
Martin Zweig's Winning on wall Street.
Van Tharp Trade Your Way to Financial Freedom
Gerald Loeb The Battle For Investment Survival
All of William O'Neil
All of Nicolas Darvas
Michael Covel Trend Following
The Five Rules of Successful Stock Investing
Benjamin Graham The Intelligent Investor and Security Analysis
Philip A. Fisher Common Stock and Uncommon Profits

These books helped me develop a winning strategy that I hope will make me a good deal of money. ... Read more

Product Description

The emphasis of this book is on understanding special characteristics of the financial systems of emerging markets, where the existence of market imperfections such as asymmetric information, adverse selection and moral hazard can cause financial market failures. Considering the Thai stock market as an example, this book provides an econometric study of a typical Asian financial system. Many contemporary techniques and models are used in this study, including simple multivariate regression, multi-factor model, exponential smoothing, Holt Winter?s models, and GARCH type models. The findings of the existence of rational bubbles, anomalies, volatility and other characteristics reveal evidence of inefficiency in the Thai stock market. Based on these results, the book includes justifications for public policies in such economies and makes suggestions for further research areas.

Product Description
SOMEONE WILL MAKE MONEY ON YOUR FUNDS-WHY NOT YOU?

"This book is a treasure trove of practical research and pithy thoughts based on Gastineau's decades of experience; a valuable guide for the thoughtful investor."
—Harold Evensky, Chairman, Evensky, Brown & Katz

"Someone Will Make Money On Your Funds - Why Not You? will jar armchair mutual fund investors out of their PJ's. If you think checking out your funds in Morningstar and Lipper has you covered, you best read this book."
—Maureen Nevin Duffy, Editor/Publisher, The Turnaround Tactician

"This book is a must-read for fund investors. Gastineau carefully discusses many important factors such as taxes, capital gains overhang, trading costs, turnover, benchmark selection, active management, expense ratio, and aggressive trading by market timers. These factors significantly affect fund performance but may be ignored by investors. Gastineau goes on to build a strong case for choosing ETFs over mutual funds, especially for long-term investors. I strongly recommend this book for investors."
—Vijay Singal, J. Gray Ferguson Professor of Finance and Chairperson of the Finance Department, Pamplin College of Business of Virginia Tech, and author of Beyond the Random Walk: A Guide to Stock Market Anomalies and Low-Risk Investing

"Gastineau's message is very powerful. He not only challenges some conventional wisdom on investing, but truly emphasizes how to add value to a portfolio. What is unique is his ability to move quickly from the big picture to implementation strategies offering investment solutions to both investment advisors and individual investors. Portfolio adjustments discussed can potentially have significant impact on a long-term investor's standard of living."
—Dan Dolan, Director, Wealth Management Strategies, Select Sector SPDRs ... Read more

Customer Reviews (4)

Guide to investing in funds with low fees
This is one of the better short guides to fund investing. Although the title emphasizes exchange-traded funds (ETFs), in fact the book covers much more. Gary L. Gastineau reviews the basics of mutual-fund investing with a particular emphasis on risks and expenses of which many retail investors are unaware. He is frank about the scarcity of reliable comparative information about funds, but offers some useful pointers for investors aiming to assemble a portfolio. He covers index funds, actively managed mutual funds and exchange-traded funds, pointing out the relative advantages and disadvantages of each. He provides useful insight into the tax and expense advantages of exchange-traded funds, but he never gives the impression of becoming a salesperson or promoter. His style is low key, sometimes to the point of dullness. However, exciting investment writers are usually not the most credible. This author gives an impression of sound good sense and steady balance. getAbstract recommends this book to new investors in particular, but old hands may also encounter a few new ideas.

Written by an expert in the field
Gary is an expert in the field of index funds and ETF's. The book is a critical review of the products on the market to use passive investing techniques.The book however lacks clear direction for the average investor as compared to a book I recently added to my investing library.

I also recommend a little book titled How to Make Money in the Stock Market-Buy 2,500 different stocks for $1000 - Pay no Commission This book is a must for those wanting to find out about indexing (passive investing) and why it is the superior method for the small investor (and big one too). This book is an outstanding guide to personal investing. It will be useful to all investors from novices to highly the highly experienced.This book prepares the reader to approach investing from the standpoint of the underlying science. It is the antithesis of a 'get rich quick scheme'.How to Make Money in the Stock Market-Buy 2,500 Different Stocks-Pay no Commission

All aspects of Modern Portfolio Theory and passive (index) investing are explained in a through and easily understood manner. The aspect I like most is that as well as a solid theoretical foundation the book is very practical and shows the reader how to create (and more importantly) and manage over time a successful portfolio. This is a great book- for the beginning investor, it's a great place to start and for the experienced investor there are many valuable suggestions.

An industry insider discusses ETFs and Mutual Funds at a very high level
I would have given it five stars if the book had been better paced; after a gentle warm-up it's continuously intense.He tells the reader to skip over dense sections but who wants to do that?By page 169 I was too mentally tired to continue.All that said, I STRONGLY recommend this book to anyone who ever wanted to listen to an financial services insider explain the real problems with today's financial "sausage".The book gives the best overview of the complex issues facing the financial services industry today.This book doesn't baby its readers, that's its strength and weakness.

AuthoritativeEFT treatmentplus more
While Gastineau is helpful on managed and index mutuals, his authoritative treatment of EFTs is the most detailed and useful I know of.Of particular, immediate use was specific recommentations of stable inexpensive EFTs in Chapter 8 for both taxable and tax-deferred portfolios.I also appreciated his deep consideration of many other investment problems and solutions.This book will always be at hand. ... Read more

Product Description
In Just 18 Months, Nicolas Darvas Turned $25,000 into Over $2 Million... This is How He Did It... ...and How You Can Do it Too! With just fifty pounds sterling to his name, at the age of 23, Nicolas Darvas fled his native Hungary using a forged exit visa, to escape the Nazis. A dancer by trade, he toured nightclubs and other venues, making a living as a performer. While on tour in 1952, a Toronto nightclub offered Darvas $3000 worth of stock in a Canadian mining company, instead of his normal cash payment. He accepted the offer, and within two months, made an $8000 profit. When this happened, Darvas became very interested in the stock market. Seeing the potential for easy money in the stock market, but realizing that his initial success was based on luck, over the next several years, Darvas became committed to conquering Wall Street. He read as much as he possibly could about the stock market. He analyzed company balance sheets, studied analyst forecasts, and read dozens of investment newsletters. This book is the result of that study, including how Darvas used his system to take a $25,000 investment and turn it into a $2.25 million fortune in just 18 months. Nicolas Darvas wasn't a professional stock trader. He was a dancer. Yet, his unique approach to stock trading, which allowed him to make money regardless of whether the market rose or fell, enabled him to make a fortune. Will this system work for you? Yes! Unlike most stock trading systems, Darvas' unique strategies work, regardless of the economy or other market conditions. In fact, thanks to modern day analysis tools, his system works as well today as it ever has. Every day, people make money in the stock market. You can too! ... Read more

Customer Reviews (157)

The people who pan this book don't get it.
It's true.This book is old.It's vague about all of the details that surround his methods for making money in equities.For all I know, it may be fictional.It doesn't matter one jot nor tittle.The point of this book is to teach some fundamental rules and understandings that are necessary in order to succeed in trading stocks.And the good news is that it teaches these ideas in a way that even a 12 year old child can understand.

If you're looking for point by point steps on how to trade this guy's system, the book will probably disappoint.But if you're trying to educate yourself in how to be a successful trader, this book is worth reading.

$2,000,000 and counting
This might have been written years ago, but the insight is still helpful today. I know nothing about the stock market and this, whilst not going into many technical details, has given a broad outline and some very good advice on how to handle your emotions when buying & selling stocks & shares.A good basic read and worth looking at.

Think about it...
I just thought of something... Even if the theories described here were correct at the time, the mere fact that a number of people started to follow the approach would affect the stocks' behaviour and the theory would no longer be correct.

excellent
He is a good writer, it was a fun book to read. I enjoyed it, and I was impressed how he managed with telegrams and a weekly paper.

World's greatest stock trader
This is the book that gave me the principles to acquire and keep $250,000 in the 2003-2007 bull market. Dancer Nicolas Darvas wrote this book to tell his story of how he turned a few thousand dollars into over $2,000,000 in eighteen months during the bull market of the late 1950's. How did he do this? He discovered that the key to stock market success was buying stocks that were rising to new highs on increased volume. He observed that stocks stayed in "price boxes" where they went to the top of a price range then came back down, and also found support at the bottom of a price range then went back up. He would buy at the moment a stock broke through the top of its range and entered a new "price box", he would also add to his position as it rose in that new box. He controlled risk by setting a buy stop to automatically by the stock as it broke out to a new high and a trailing stop to sell it automatically if it fell back into the old price box. He made all these decisions by telegrams sent back and forth between Darvas and his stock brokers as he traveled the world. He participated in the rise of Diner's Club as it popularized the use of credit cards, Lorrilard as its release of filter tip cigarettes caught on, and held a huge position in E. L. Bruce as the company had an attempted takeover through stock accumulation. Darvas considered himself a techno-fundamentalist buying stocks at 52 week highs that had huge future earnings expectations. This book tells his story of learning the hard way through losses then the incredible success he experienced. I have read over 150 trading books and this one captures all the principles of trading to be successful. Although Nicolas Darvas considered himself a growth stock investor, I use his principles for all types of trading. This book is recommended reading by William O'Neal the publisher of Investor's Business Daily and contains the principles that IBD uses to this day. This book along with the other five Darvas books now back in print by BN Publishing are must haves for any serious traders library. ... Read more

Product Description
The universally acclaimed investor's classic has now been updated with the latest data and references. With more than 800,000 copies in previous editions, this is the definitive reference on analyzing trends in stock performance. It incorporates the most recent stock information and updated charts for expert guidance. Charts, tables, graphs. ... Read more

Customer Reviews (63)

comprehensive but not complete
4 stars for the volume of thoroughly well researched examples and exhaustive coverage of basic patterns.
This book is comprehensive but not complete. There is no information on some modern indicators or, for example, candlesticks or point and figure.
I have the 8th edition.
This book is good to have and I did learn valuable things from it but if you are only going to buy a few books, I would not recommend this as one of them.
On the plus side, there are many many actual stock chart examples. That adds to the length in a good way.
Writing style is very much early 20th century; leisurely rather than short and to the point.
This book is geared toward stocks and commodities but not forex. (although the stock patterns also apply to forex)

Review
I've read quite a significant amount of trading books, but this one beats the rest by far. It was written in layman's terms with practical applications. A real treasure trove.

This is a FIRST EDITION REPRINT, not the latest 9th edition
If you want a copy of the original 1940s edition, that is what this is. The Amazon webpage makes it look like you are buying a paperback copy of the most recent hardcover, but that's not the case.

I purchased this item and will be returning it, not because the the 2007 edited version is so great, but because this edition doesn't even have the benefit of the original authors correcting their own work based on feedback and review!!

Thorough, but dated and a little frustrating to read
I'd recommend this book to anyone wanting an introduction to technical analysis. It is written like a textbook with topics addressed in logical order. This book covers detailed descriptions and analysis of many traditional chart patterns and some attendant trading strategies. Numerous examples are given in annotated charts. Technical terms are defined and explained.

In the ninth edition (©2007), Appendix E contains a Turtle Trading System manual written by Curtis Faith (one of Richard Dennis' original Turtles) - a dated but nevertheless instructional description of a mechanical trading system.

Though this book is a great educational tool, I feel it would be a mistake to take it all literally as a guide to trading. The original author, Magee, last updated the book in 1966. He goes out on a limb regularly in his advice on how certain patterns 'typically' resolve. The probabilities with which his rules apply to today's markets would undoubtedly vary from pre-1966 markets. William J. O'Neil, in his renowned How to Make Money in Stocks (©2009, p.-146), said that many patterns discussed by Edwards & Magee such as triangles, coils and pennants have, in recent times, shown to be "unreliable and risky" patterns "without sufficient time or price correction to become proper bases."

I found the book a frustrating slog to get through because Magee uses a very formal, wordy and repetitive writing style. In the eighth and ninth editions professor Bassetti has added numerous editor's notes and extra chapters to the original, but frequently uses awkward, incomplete sentences to belabor the obvious. More annoying were Bassetti's repeated attempts to be clever, e.g. p.- 415: "The wild frontier of the Internet and of the gunslinger speculators. Amazon bucks on. Give us a slug of rotgut whiskey and get out the ruler", or "one might almost say awesome, if the word were not in such currency on `Saturday Night Live' and the `Comedy Channel'". This sort of running commentary gets tiring after 800 pages.

a must read
This is a great book for anyone interested in learning the field of technical stock analysis ... Read more

Product Description
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Learn about:

Forex Technical Indicators
Moving Averages
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Dominate the Technical Indicators landscape, download this guide today. Also look for our other business guides in many other interesting and profitable topics.

*This is not tax or financial advice - consult your advisors* ... Read more

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Master the Low-Risk ETF-Based Investing Strategy That Gives You the Chance to Make Money in Any Market Climate

Customer Reviews (24)

ETF Trend following Playbook
This book gives good, easily understandable information.It was just what I was looking for.

Tom Lydon Knows His Stuff! Read This Book!
Turn over any rock these days, and you'll find Tom Lydon of ETF Trends (click here at [...] ) extolling the virtues of exchange traded funds (ETF's) and exchange traded notes (ETN's). So I thought it would be timely to read his book on the subject, The ETF Trend Following Playbook. Tom launches into a detailed explanation of these versatile new instruments, including the minutia on issuance, clearing, settlement, and even which end to hold up. He offers a simple trend following system that enables the uninitiated to approach the market in a disciplined and risk controlled fashion. His basic premise, quite correctly, is that "buy and hold" is dead and that we all have to trade for a living, like it or not. He lists the many tools available today to the ETF trader which will give him the confidence they need to pull the trigger. Much of the rest of the tome is devoted to detailing the hoards ofETF's that are out there today, over 900, in stock indexes, sectors, bonds, currencies, commodities, precious metals, and even real estate, in both long and short flavors. He also explains the advantages and warns of the pitfalls of the 2X and 3X leveraged and ultra long and short ETF's. You may have noticed that not a day goes by without me recommending an ETF, because they enable investors to take narrow rifle shots on very specific sectors of the global markets that can be executed through your garden variety online trading account. At only 198 pages, with a useful glossary of investment terms at the end, this highly compact, readable, and useful primer is a must read for anyone planning to seriously play in these securities. Tom certainly knows his stuff!

-The Mad Hedge Fund Trader

Investing made easy!
So glad I read this book. The author explains the strategy in a language I can understand. This book gave me a solid plan that makes sense and eliminates the guess work. I'm ready to put what I've learned into practice!

Introduction to ETFs, but not useful for tend following
Thus book is really not much more than a brief introduction to the field of ETFs. As for the "trend following" in the title, readers interested in the technique will be sorely disappointed. The only recommendation is to buy when an ETF trades above the 200-day exponential moving average and sell when it falls below it. That's it. Seriously. Add to that the frequent plugs of the author's website and you really have to wonder why anyone would bother to put out a book like this and seriously claim to be providing any sort of useful service to the investing public.

That old empty feeling
The book failed to deliver on ETF trend-following.Other than the constant repetition of the value of using the 200-day EMA, the book offered few other ideas on following ETF trends or sector rotation.The book did a good job of reviewing the relatively new and expanding world of ETF investing, but did not serve as a playbook at all for a serious ETF investor trying to find other than subjective ideas for moving in and out of ETF trades.In spite of all the hype, it left this ETF investor with that common empty feeling so familiar with many investing how-to publications.Once again, publishing houses do a great job with motivating the buyer, but the authors rarely intend to reveal any truly useful day to day investing playbook ideas. ... Read more

Product Description
Attempting to reveal the real causes of the 1929 market crash, Bierman refutes the popular belief that wild speculation had excessively driven up stock market prices and resulted in the crash. Although he acknowledges some prices of stocks such as utilities and banks were overpriced, reasonable explanations exist for the level and increase of all other securities prices. Indeed, if stocks were overpriced in 1929, then they are even more overpriced in the current era of staggering growth in stock prices and investment in securities. The causes of the 1929 crash, Bierman argues, lie in an unfavorable decision by the Massachusetts Department of Public Utilities coupled with the popular practice known as debt leverage in the 1920s corporate and investment arena. ... Read more

Product Description
When the generation known as 'Baby Boomers' begin to retire and cash in on their plans, there's a chance that this drain on reserves could cause a major devaluation in people's savings. This book offers a plan to help you prepare for the worst, offering alternative investments. ... Read more

Customer Reviews (128)

Rich dad Prophecy
I have read many books in the Rich Dad series, and unfortunately, Mr. Kiyosaki continues to recycle the same concepts and themes over and over again.This book could have been written in 20 pages to get its unique, from his other books, message across.I would definitely not pay full price for this book and even if free, you may still feel frustrated at the redudancy of the message by the end of the book.

Skip it
There will be a stock market crash in 2016 because this will be when the Baby Boomers start retiring. The Boomers are the first generation to retire with IRAs and 401(k) plans instead of pensions. That means that there will be more people selling stock than buying. This will cause the stock market to crash.

There you have it. That's the extent of the Prophecy. The rest of the book is conversations he had with his rich dad and his rich dad's son, some examples of his real estate ventures, and some of the lessons he learned in the Merchant Marine Academy.

If you are a Kiyosaki fan, you may get something out of it, but if you are looking for insight on investing for the next decade, skip this book and read Schiff's Crash Proof 2.0: How to Profit From the Economic Collapse and Turk's The Collapse of the Dollar and How to Profit from It: Make a Fortune by Investing in Gold and Other Hard Assets

Written prior to 2008, but still relevant
I have read other Rich Dad books and I've thoroughly enjoyed their message. Like all books of this type, it is harder to act on the message than it is to read it, and since Kyosaki is selling seminars it is always a let down to realize that he is never quite getting to the "how" in his books. He is just selling the idea but its really up to you to do something about it.

Nonetheless, I find it useful to reinforce the life lessons that Kyosaki preaches, so I occassionaly read another one of his books for inspiration. I ignorantly picked this up at the book store thinking that Kyosaki's team of ghost writers acted quickly at the end of 2008, but I found later that it was written more than 5 years earlier.The prophecy is that the IRA and 401k withdrawals from the baby boomers will crush the market beginning sometime around 2016, which is going to hurt all of the other investors whom rely on the market for their retirement security. Kyosaki preaches that one should start businesses and own real estate that generate passive income to protect oneself from this market upset.

He is usually enthusiastic about real estate but this is likely to rub some people wrong since many would blame real estate speculation for causing this recent economic mess. But the lesson is one level deeper than that: today, the market is more detached from tangible assets than it ever has been. Conflicts of interest run rampant through the markets extending from the Federal Reserve, through the halls of the Securities Exchange Commission, through the front doors of the lobby shops, and into the hedge funds and investment banking firms. The lines between regulatory officials and the private sector are blurred because the people in these positions have resumes from both sides of the fence, and this is something that has been happening for decades (it's not just a recent thing).I don't know about you, but it seems to me lately that investing in the market is really just placing bets on a popularity contest and nothing more.

So whether Kyosaki is right about the prophecy or not, frankly, I am less and less interested in paying my dues into the Wall Street Club, and this book reinforced it for me with just one more reason on top of many. Disenchantment with the market is strong, and it's because many people have put their financial security in the hands of strangers.We can all hope for a good future, but just giving our money to a mutual fund manager is really giving up on a faster way to retirement. Kyosaki's implicit question: How can we expect them to ensure our retirement for us?

So Kyosaki's point is really larger than the baby boomer market withdrawal and the eerie title of this book. It is that any of us who genuinely want financial freedom and (more importantly) freedom of *time* must seize our own destiny and take control of our financial future. The only way to do that is bite the bullet, direct your investments toward business ventures that are more directly in your control, and work toward developing passive income via vehicles such as rental real estate. Easier said than done, but it's the truth. I struggle with this as much as any of the readers do, but I greatly appreciate Kyosaki's general message that the conventional job and 401k pathway won't give us the freedom of time and money that we want. No one else is going to find a way for me to retire before I'm 40, and no one else is going to do it for you, either. It's up to each of us to figure it out on our own, and we'll likely be happier for it. That's the larger message - "The Prophecy" is just another twist on that same message.

Very good read
I am going to make this a must read for all my family members and friends. It's a real eye opener!

A dire prediction almost beyond comprehension
This book is directed primarily to those middle-class wage earners, professionals, and small business owners who hope someday to retire in relative comfort with some degree of security, but it should be of interest to any intelligent reader.It is both a wake-up call and a call for action.The call, as Mr. Kiyosaki makes quite clear, is long overdue, since the Employee Retirement Income Security Act (ERISA) of 1974 -- which authorized the creation of "Defined Contribution" (DC) retirement plans, such as Keough Accounts, 401(k)s, and IRAs, in lieu of "Defined Benefit" (DB) retirement plans -- placed the burden of planning and providing for one's retirement solely on the individual.

As a result, the vast majority of America's future retirees will soon be forced to survive on whatever savings and investments, if any, THEY have managed to accrue during their working years.According to the author, this poses a crucial problem, since most people now in America's workforce don't even understand the difference between the previous generation's DB plans in which an employee knew exactly what he or she could expect to GET OUT OF THE PLAN upon retirement and the newer DC plans in which all that is certain is what the employee PUTS INTO THE PLAN.The author goes on to explain that the situation was made even worse by ERISA's rules which confined the middle class to invest only in paper assets, such as stocks, bonds, and mutual funds, which most didn't and don't understand and which few can manage.And, based on the author's analysis, these are the riskiest investments with the lowest level of returns.

To make matters still worse, both for those hoping to retire and for virtually all Americans: sometime in the near future America's baby boomers (those born between 1946 and 1964; 75 to 83 million strong) will begin reaching retirement age and soon after will begin reaching 70 ½ years of age - the age at which the government mandates that they MUST begin making withdrawals from their retirement accounts (in effect, from the stock market, mutual funds, etc.).Add to this the fact that government sponsored inflation is destroying the value of the dollar, thereby diminishing the level of return on all investments; that withdrawals are taxed as ordinary income; and that many of the world's leading nations are faced with similar problems and the stage is set for a global economic catastrophe.

So, here is the author's prophecy in a nutshell: If individuals happen to retire when the stock market is depressed, or if the market subsequently declines (a virtual certainty), the impact on those individual's retirements will be severe and may very well be catastrophic.And when colossal and increasingly larger numbers of retirees are systematically forced by law to liquidate their paper assets, the stock market will likely crash, and the sustained withdrawals by will likely preclude a recovery.

So much for the good news . . . (only kidding)

Recognizing that this problem can't be solved at the national or international level and that paper investments, and particularly diversified mutual funds, are extremely risky: Mr. Kiyosaki recommends that his readers, in his words, "build an ark to weather the coming storm" by striving to improve their financial literacy; taking control of their individual retirement accounts; stop buying "liabilities" such as expensive homes, luxury items, pricey cars, and doodads "which take money out their pockets" and begin accumulating real "assets" such as well-chosen, employee directed, stocks and rental properties which generate income and "put money in their pockets."He concludes by presenting some guidelines and specific examples illustrating how this might be accomplished.

This is a excellent, though somewhat repetitive, book and a must read in which the author provides well founded and well thought out insights into the state of America's economy and its flawed retirement system.Based on that insight, he forecasts a dreadful, though compelling, scenario which both he and I hope never comes to pass.Unfortunately, based on the magnitude of the problem, the material he presents, and simple math, it would seem to be an almost unavoidable certainty.It may not help, but I'd read this book if I were you.
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Product Description
Of all the books on Wall Street and the stock market that have appeared over the years, none has had the impact or staying power of this book. Since it was first published in 1978, Understanding Wall Street has been recognized as the leading primer on the stock market. Now this unsurpassed guide is available in a updated edition for the 1990s. Little and Rhodes examine the effects of the crash of 1987 and provide fresh material, including several all-new chapters, on junk bonds and growth stocks, program trading, gold and silver, investor resources and services, and international investment. Readers also learn how to interpret business news and how to protect themselves in a bear market. ... Read more

Customer Reviews (27)

Best for Newbie- easy to read, informative and entertaining!
Understanding Wall Street
If you are new to "Investing" or you want to know more about "Wall Street." Then you'll love this book,this books starts with the brief history about the Stock Market and progress systematically about different investment options available. It teaches you the basics of theories and concepts in the financial world. This book will definitely help you understand and enjoy Financial Newspaper like Wall Street Journal!!
"This book is very easy to read, informative and entertaining!!!"

[...]

This book is more than just about Wall Street
This book is more than just understanding Wall Street. It explains the history of Wall Street and how stocks are bought and sold, but it also teaches readers how to invest in the stock market. This book was originally written in 1978 and had several revisions. Some of the information is a bit outdated, specifically when it comes to the Internet. For example, the author teaches investors how to read tables in the newspaper. I am not sure how many investors are actually looking at the newspapers to read stock tables. I am not.

The author also includes a chapter on bonds, preferred stocks, and the money market. He realizes that some individuals such as widows have different financial goals than someone who is just starting a family. Bonds, for example, provide more current income than stocks do. I found this book easy to read with good advice.

- Mariusz Skonieczny, author of Why Are We So Clueless about the Stock Market? Learn how to invest your money, how to pick stocks, and how to make money in the stock market

Understanding Wall Street
Understanding Wall Stret (most recent paperback edition) is an excellent book.Shipment arrived in time as promised and in perfect condition.I am completely satisfied with how this order was handled.

Consider "Understanding Wall Street" Your Best Initial Investment
The New Design Chair Company may not make today's investors turn on their heels and take notice. But, throughout it's storied existence, its done what few companies could do: introduce the basics of investing to generations of investors.

For nearly 30 years, readers have followed New Design from its humble beginnings, through the attraction of venture capital, and eventually to the breakthrough of going public. And, the details of that journey are just the first few pages of the Jeffrey B. Little and Lucien Rhodes classic, Understanding Wall Street.

Want to understand how Steve Wozniak and Steve Jobs took Apple Computers from an idea in a garage to one of the most innovative computer companies in the world? Want to see what steps Bill Gates took to build Microsoft into the world's biggest software company? Want to know how Google went gone from fledgling internet company to a NASDAQ company with shares trading at $600 per share? Start with understanding how the New Design Chair Company went public.

As an investor, if you want to find out how to identify the next Apple, Microsoft or Google, then the rest of Understanding Wall Street is definitely for you. Throughout the rest of the book, Little and Rhodes fill in many more details and make the complex ideas behind financial markets, financial analysis, investment choices, and investment vehicles accessible. In everyday language, they cover basic investment concepts and theories at an introductory level, yet they are also complete enough and concise enough for anyone to read and get a thorough, top down, view of Wall Street. It may very well be the perfect book for someone looking to build a solid understanding from which to start investing.

In the late 80's, as a neophyte investor, I picked up more than I imagined I would from Understanding Wall Street.

In the late 90's, as an industry professional, I frequently turned through the pages of my tattered old 3rd edition for a great review from time to time.

Today, as an adjunct professor, I am still amazed at the book's scope and ease of understanding. And, I find myself recommending Understanding Wall Street before, during, and after it's apparent that 50lb text books don't always carry their weight.

The book's newest edition is nearly 40 percent updated with revised and new material. It includes two new chapters, strategies to uncover valuable investment opportunities on the internet, and an analysis and explanation of our most recent bear market.

If you have the slightest desire to learn about the world of investing, Understanding Wall Street just may be your best initial investment.

A Manual To Clear The Waters of Understanding.
Jeffrey Little and Lucien Rhodes' treatise "Understanding Wall Street" is a very valuable guide for the neophyte desiring the critical knowledge of how the financial nerve center of North America operates.

Rich with historical insight, this guide details the origins and subsequent transformation of some of the world's most prominent stock exchanges located on the street synonymous with wealth and power: Wall Street.

To that end the guide is easily readable and understandable.Complete with examples, explanations, and a comprehensive glossary I found the guide to complete and fill a hole in the much needed understanding of the financial facet of comparative government and civic theory studies.

I rate the text at five stars for providing a lot of information at only 300 pages.This review refers to the 2004 Fourth Edition.

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Product Description
An analysis of the major securities, derivatives and money markets from an operations point of view, 'Understanding the Markets' takes the reader through the major features and characteristics of the markets and the products. The relationship between the trading and dealing functions and the operations functions is examined and the issues discussed.

This book looks at the financial markets from the viewpoint of the person working in the operations functions that support the trading, dealing and investment processes, and as such is essential reading in order to fully understand the industry - an industry which has gone, and is still going through, much change.

As the markets undergo change so too do the administration, clearing and settlement functions, as the clearing houses, securities depositories and custodians merge and diversify. This is going to impact on the operations teams that support the trading, sales and retail business. A failure to be aware of and to understand the impact of changes in the markets will create massive problems, greater risk and ultimately financial losses. And yet the sheer size and diversity of the global markets, together with the rapid pace of change and expansion, and the increasing volume of transactions needing to be processed, presents a massive challenge to operations teams and managers.

Knowing how the markets work and what impacts on the operations team is crucial for managers and supervisors. In this book the author provides a full explanation of the markets and their impact in operations terms.So if you are about to embark on a career in operations 'Understanding the Markets' is essential reading. Alternatively, if you are planning a career as a dealer it will prove very useful in explaining the process that occurs after you have traded.

The definitive series of professional references for those finance professionals concerned with "Back office" or operations management unique to this industry.Presents concise references on the essential management functions such as technology, client services, and risk managementfor financial operations management professionals.A comprehensive resource from a leading financial management consultant for global banks and institutions. ... Read more

Product Description
She's been compared to a beacon shining through the fog. Her thorough research, meticulous analyses, and extraordinarily accurate forecasts have won her the respect and admiration of colleagues up and down the Street. A protégée of the master technical analyst Alan Shaw, she is currently Senior Technical Analyst, Vice President for Research at Salomon Smith Barney. But what some insiders remember most about Louise Yamada is that in 1994 she was among the very first to predict the greatest bull market of the twentieth century.

In Market Magic, Louise Yamada shares her formidable skills to look beyond the daily noise of trading and help guide your investments through the perils and uncertainties of the next ten years. At a time when classical forecasting techniques seem to be failing us and even the professionals are at a loss as to which way the markets will go, Yamada marshals her experience and talent to offer on-target analyses of today's macro forces and specific trend forecasts for the next decade.

Reading this book, you will understand why her weekly reports on various markets are so eagerly awaited by investors everywhere. Yamada describes what she saw in 1994 that led her to argue for an extended bull market. In addition, she describes her "two-tier market thesis" and explains why U.S. equities with global exposure have outperformed domestically focused stocks and why this trend should continue into the future.

Yamada reveals how macro changes in U.S. demographics have subtly altered the business and investment landscapes, and how these demographic shifts are impacting the stock market in ways that have been largely unnoticed. Her case for an extension of this bull market into the next century is must reading for all serious (and nervous) investors. Firm in her belief that new technology will continue to drive the economy, Yamada identifies the industries and business sectors she believes will thrive under its expanding influence.

Market Magic offers a fresh perspective on the new and emerging realities. Forging links between the forces that will be at work in the future, Louise Yamada reveals a thought-provoking scenario for the market's next ten years, and details how investors can track its course through technical analysis. Market Magic is an enlightening analysis of the big picture from one of the best minds in the investment community.

"Few on Wall Street can match Louise Yamada for analytical ability as well as insight on the big issues affecting investors. We are fortunate she is willing to share the results of her thoughts and research with us." —Mark Haines, CNBC.

"Louise Yamada has a special talent for anticipating future financial trends. Market Magic is a must read for investors as we prepare for the exciting decade ahead." —David Cork, F.C.S.I. author of The Pig and the Python: How to Prosper from the Aging Baby Boom.

"Market Magic demystifies the voodoo of technical analysis and relates technical indicators to the real world of stocks and bonds and demographic and economic trends worldwide." —Oscar S. Schafer, General Partner Cumberland Associates; Member, Barron's Roundtable. ... Read more

Customer Reviews (4)

A journey beyond the daily headlines, and stock of the day.
This book carries you beyond daily headlines and the siren song of the stock of the day. Ms. Yamada seeks to identify the underlying enduring trends, rather than tout a cookbook style prescription to current fads.This is a history lesson, making extensive use of comparisons with priorbull markets. As a result, the reader should expect to be an activeparticipant by reviewing the the detailed charts and data. A page turner itis not. The core thesis and eventual conclusions are well worth the effort.After all it is your money.

PRINCIPLES TO INVEST BY
Reading this book teaches the reader that demographics play a vital role in this "new" economy. The future is completely predictable if we focus on logic vs emotion. A must reading for all long term investors.

A fascinating guide to the next ten years of investing
I was turned on to this book by theStreet.com's review which gave it five stars saying "Salomon Smith Barney technical analyst Louise Yamada has written a monumental book, one that all serious and professional investors should read." After a couple of times through Market Magic I couldn't agree more. The first part of the book reads like an analyst's detective story as Yamada exlains how she came to publish her 1994 prediction of 7680 for the Dow even though the average was then stalled at 3600. Yamada then takes on the future and describes the global macrotrends that are already shaping the world economy, and will continue to do so despite interim setbacks. This is not a beach book. It challenges readers to think anew and question outdated concepts. I can't imagine a more rewarding guide to the future.

Very disappointing work from a wonderful analyst
Louise Yamada is an interesting analyst. Although the book contains a lot of data, the data do not come together to form information or wisdom.

Thankfully, each chapter has a summary. The summaries make me feel like I covered the book and didn't completely waste my money. ... Read more

Product Description
A complete blueprint for starting and managing a personal trading business.

"Without a clear understanding of the correct basics of trading you'll never succeed in this business. Sunny Harris' Trading 102: Getting Down to Business will give you the correct basics of trading in an easy to learnformat. This book will jump start the success of anyone who has not figured out the truth of trading." —Larry Williams Trader and Author.

"Sunny Harris has done it again! Her new book, Trading 102, offers a wealth of exceptionally useful information for traders and investors. It places high on my list of recommended reading." —Edward D. Dobson President, Traders Press, Inc.

"Trading 102 is the perfect sequel to Trading 101. Sunny Harris brings all of the essential ingredients together and presents a concise step by step plan of action. I am amazed at the wide range of material she was able to squeeze into this very enjoyable book." —Charles LeBeau Author, trading advisor, founder of the System Traders Club.

In her much-praised and highly popular book, Trading 101, Sunny Harris offered novices a crash course on the basics of the field, from puts and calls to stocks and bonds to GDPs and EMAVs. Now, for those looking to continue their education, Harris presents Trading 102: Getting Down to Business, an invaluable roadmap to taking the next step: designing an individual trading system and starting a personal trading business.

Along with hands-on strategies, proven techniques, and straightforward guidelines for tailoring a system based on individual trading styles, Trading 102 is packed with a wealth of easy-to-read charts and graphs, as well as complete information on:

• The science of the business —setting goals, budgeting, keeping an expense worksheet, figuring outgo
• Formulating a sound business plan —cover page, mission statement, company differentiators, resource requirements, summary
• Software for systems testing —Excalibur, TradeStation, MetaStock, Window on Wall Street (WOW), and more
• System performance assessment —keeping track, slippage, Rate of Return (ROR), Maximum Adverse Excursion (MAE), Value Added Monthly Index (VAMI)
• Psychological traps to avoid —a special section written by Adrienne Laris Toghraie, a leading trader's coach, that covers lack of preparedness and motivation, conflict, inappropriate emotional states, negative behaviors.

Supported by a bibliography and a comprehensive appendix that includes margin requirements, commodity contract information, and closing values of the Dow Jones Industrial Average, trading 102 is required reading for anyone looking to take the big leap into professional fund management. ... Read more

Customer Reviews (3)

Excellent "from the heart" book
I found this book to be extremely rewarding to read, chock full of jewels.I loved it so much I have bought two (one for my son-in-law for Father's Day), and am now reading it for the second time.It's the best book I've read yet on trading.She doesn't keep anything back.And, there are tons of references to everything you can't find anywhere else.

general overview, but thats it.
I was extremely dissapointed in the book, not so much becasue it was bad, but more because it was not what I expected.I expected a book about starting a money management business, but instead found someone telling mewhat technical analysis software packages are on the market, and who sellsdata!While it is broad in its covereage of the process of developing atrading system, I don't think its deep enough to spend the time or themoney on.

A savvy primer for budding fund managers
Fans of Trading 101, Sunny Harris' prequel to this book, kind of know what to expect. This time around, she covers how to develop a personal trading method that can form the foundation for a trading business. If youanticipate trading beyond your own account, or trading full-time, this newbook shows how to set the business up and how to avoid psychologicallandmines that plague traders in the everyday course of business.Copyright1998 by Michael Pellecchia ... Read more

Product Description
The FOREX TRADING Book for the Kindle will teach you everything that you need to know to trade on the Forex market for maximum profits.
We are pleased to offer thousands of Books for the Kindle. Click on our Editor Name next to the book title above (eBook-Ventures) to view all of the titles that are currently available. ... Read more

Product Description
In this engaging and challenging book, Robert Hagstrom outlines a new approach to investing based on the ideas of two highly successful investors: Charlie Munger of Berkshire Hathaway and bill Miller of Legg Mason.Both Munger and Miller believe in the latticework approach to investing, one that is based on a working knowledge of a variety of disciplines.Latticework is a true liberal arts approach to investing.It carries the reader from Ben Franklin's vision of education to St. John's College with its Great Books program to the cutting-edge Santa Fe Institute, a multi-disciplinary research center which brings together scientists from a variety of fields to address complex adaptive systems, including markets and economies.In helping readers develop the worldly vision they need to succeed financially, Latticework also points the way to a richer, fuller, more rewarding life.Amazon.com Review
In the investment world, the term latticework represents the highly diversified but intimately related body of knowledge that Berkshire Hathaway vice chairman Charlie Munger has called upon to build the phenomenally successful holding company he runs with the legendary Warren Buffett. In Latticework, investment professional Robert G. Hagstrom--who previously authored The Warren Buffett Way--elaborates on this broad-based approach and presents some essential theories of physics, biology, social science, psychology, philosophy, and literature that can help readers achieve a similar grounding. "Investment decisions are more likely to be correct when ideas from other disciplines lead to the same conclusion," Hagstrom writes. "Those who strive to understand (these) connections are well on the way to worldly wisdom. This makes us not only better investors but better leaders, better citizens, better parents, spouses and friends." Once absorbed, he contends, the fundamentals of these six subjects allow finance and investing to be considered as they should: "as a unified whole." He explains how the rule of supply and demand is like the point of equilibrium in physics, for instance, and the law of economic selection is akin to a biologist's view of evolution. These and other provocative theses are presented throughout in a consistently clear, thoroughly convincing, and wholly captivating manner. --Howard Rothman ... Read more

Customer Reviews (11)

Investing is about being well-rounded
Charlie Munger always believed that in order to be successful in investing, one must constantly read and learn, but not only in the investment arena. In this book, the author illustrates a new approach to investing based on the wisdom of Munger and another extraordinary investor, Bill Miller. Both of them believe in the latticework investment style, where one needs to understand other disciplines such as psychology, physics, biology, philosophy, and literature. Concepts and ideas can be borrowed from other disciplines and applied to investing to increase the chances of success.

I found this book interesting and I can see how being well-rounded makes one a better investor. I would definitely recommend this book to investors who are looking to gain a greater understanding of the investment discipline.

- Mariusz Skonieczny, author of Why Are We So Clueless about the Stock Market? Learn how to invest your money, how to pick stocks, and how to make money in the stock market

a speculator's attitude to the market
why 1 star ?the book is a speculator's attitude to the market,from the first page to the end of the book you can find the so called"inspiration"to the market only,although it is based on the Charlie Munger's ideas.

"Investing: The Last Liberal Art" and "Latticework: The New Investing" are the same book
"Investing: The Last Liberal Art" and "Latticework: The New Investing" are exactly the same book with exactly the same content up to the page numbers. Just the book name and book cover were changed. It's not clear why the publisher changed the book name but after purchasing both books I find highly misleading.

pretentious and superficial
After writing several books about Warren Buffet, Mr. Hagstrom must have decided that the market for books about the Sage has been saturated and moved on to his next venture:to write a book about a half-baked success theory of Mr. Charlie Munger, the intellectual snob who sits quietly next to Warren Buffet during the annual shareholders' meeting of Berkshire Hathaway.The result is a self-help book for Berkshire Cult members.
Mr. Munger may be on the right track when he says that a businessman should have a very broad knowledge about the World in order to make competent decisions. However I doubt that he was ever able to come up with a coherent theory of how to get rich through getting bookish.It doesn't matter.Every half-baked idea that comes out of the prophet's mouth is being turned into a gospel by the devotees.
Believe it or not but this book is all about teaching you how to get rich by reading Shakespeare, Charles Dickens, and the autobiography of Richard Feynman.Don't laugh!It is true.
There may be some way to apply knowledge from various branches of learning such as Physics, Biology, and Literature to Investing.Eliyahu Goldratt for example used his background in Physics to solve practical problems in supply chain management.But Hagstrom is certainly not the man to do it.His discussions of Physics, Biology, Psychology, and Literature are superficial at best and I suspect that many professionals in those fields will find them laughable.Who does he thing he is? John Stuart Mill?
One star is all I can give.Hagstrom's other books about investing are much better than this one.Go buy "The Warren Buffet Way" or the "The Warren Buffet Portfolio".Hagstrom did a much better job in those two books than in this one.

An Outstanding Book
In Latticework, Mr. Hagstrom has written a very powerful book arguing for the importance of a multidisciplinary approach to investing.If you are looking for a "magic bullet" to make your stock picking infallible, you will need to look elsewhere.Instead Mr. Hagstrom argues that all of the major branches of learning have something to offer.As a professional investor, I couldn't agree more.In particular Mr. Hagstrom draws on the work of the Santa Fe Institute in complex adaptive systems.His argument that too often people view the market in Newtonian terms which are ultimately inappropriate rings very true.

This book does not pretend to offer a lot of answers, but rather is a starting part for future work.The bibliography alone is worth the price of admission.Ultimately, perhaps the highest praise I can give is that this book might not only make you a better investor, but also a better person. ... Read more

Product Description
Praise for searching for alpha "A provocative, witty, and meaningful book. Searching for Alpha is eminently readable. I highly recommend it!" —Dr. Martin Zweig Zweig-DiMenna Associates "Searching for Alpha is right on the mark and essential reading for anyone who wants to go beyond stock-picking and think about how to construct a total portfolio to fit their own risk and return objectives." —Bluford H. Putnam, President CDC Investment Management Corp. "Searching for Alpha is as instructional as it is entertaining. Ben Warwick’s engaging examination of the modern investment process is succinct yet thorough, and cleverly interspersed with amusing facts, anecdotes, and historical insights…a charming book with lots of insight for both the novice and the professional." —Mark Kritzman, Managing Partner Windham Capital Management author, Puzzles of Finance "Searching for Alpha is a wild and entertaining read that just happens to be an investment book. Along the way, you’ll read about the Civil War, the origin of professional football, and even whaling—and by the time you’re through, you’ll know more about the investment game than you ever imagined." —Jeremy Pink, Editor-in-Chief worldlyinvestor.com "An erudite, well-written, and interesting book—with the added advantage of being right! The theory is state-of-the-art; the practice is very much current. Warwick has a special talent for historical analogy and storytelling." —Theodore R. Aronson, Partner Aronson & Partners ... Read more

Customer Reviews (14)

Searching for Alpha: The Quest for Exceptional Investment Performance
Excellent, yet easy read.Yields a brief insight in most of the important topics surrounding "alpha".

Muddled, wandering, uninformed.
Being in the asset management consulting field I thought this highly recommended title should be as insightful as Swensen's "Pioneering Portfolio Management". I found it directionless, full of unconnected pointless anecdotal comments, as well as giving misleading shallow guidance regarding indexing.

Packed With Knowledge!
By turns technical, analytical and anecdotal, Ben Warwick's expert investment guide takes you on a whirlwind tour of modern investment theory and practice. Accessible enough to reward dabblers in the field, this book at the same time raises serious issues and attempts to, if not explain them completely, at least point you down the path to financial enlightenment. Abstract or downright abstruse concepts are generously illuminated by side trips into the worlds of one-armed oil wildcatters, Beethoven, Dom Perignon and the mathematician who managed to stop Napoleon's invading armies. We [...] recommend this book as one of the finest overviews of financial theory, technique and practice ever to grace our library's shelves.

Interesting, but ultimately frustrating
An easily readable and interesting book about problems and opportunities when trying to exceed average investment performance in a nearly efficient market.As an individual investor, I got a few interesting general insights about the investment climate in which I am competing.

But ultimately, I found the book frustrating and rambling.Ideas in one section do not build on or relate clearly to those in other sections.Investment terms (managed futures, arbitrage, value at risk) are discussed in interesting ways but are not defined or explained in enough detail to make them clear or useful.The book seems to be addressed to people who already know most of the investment management concepts discussed, but then it is unclear why concepts like a normal distribution are explained in the simplest terms possible.The book may appeal to math phobics since the author's dismissive references to "quant jocks" makes me think he leaves all the math and precision thinking to others.

A Great Read!
Ben Warwick has done an exceptionally good job at taking a subject (Investment Policy) that to most readers is maybe dry, and unexciting and making it a highly enjoyable subject about which to read. Interlaced among truly entertaining stories and anectdotes ranging from the discoverery of nitroglycerine to the life of Ludwig van Beethoven are well-researched, sound, quite readable discussions and theories about Index-based Investing, Capital Asset Pricing Model, Modern Portfolio Theory, Managed Futures and much, much more. Warwick is incrediblly knowledgeable about the subject of investing, and as an Investment Advisor, my Investment Policy will be greatly enhanced having read this book. ... Read more

Product Description
Hedge funds are now the largest volume players in the capital markets. They follow a wide assortment of strategies but their activities have replaced and overshadowed the traditional model of the long only portfolio manager. Many of the traditional technical indicators and commonly accepted trading strategies have become obsolete or ineffective.

The focus throughout the book is to describe the principal innovations that have been made within the equity markets over the last several years and that have changed the ground rules for trading activities. By understanding these changes the active trader is far better equipped to profit in today’s more complex and risky markets. Long/Short Market Dynamics includes:

• A completely new technique, Comparative Quantiles Analysis, for identifying market turning points is introduced. It is based on statistical techniques that can be used to recognize money flow and price/momentum divergences that can provide substantial profit opportunities.
• Power laws, regime shifts, self-organized criticality, phase transitions, network dynamics, econophysics, algorithmic trading and other ideas from the science of complexity are examined. All are described as concretely as possible and avoiding unnecessary mathematics and formalism.
• Alpha generation, portfolio construction, hedge ratios, and beta neutral portfolios are illustrated with case studies and worked examples.
• Episodes of financial contagion are illustrated with a proposed explanation of their origins within underlying market dynamics

Customer Reviews (4)

Provocative and unusual
Most financial market books, especially those on TA, seem as though addressed to prospective targets:"Suckers, use my superdooper-specialized proprietary method, trade a lot, get my newsletter, and open an account at my very own, highly recommended XYZ brokerage firm."They are, generally, composed of descriptions of too-well known indicators, replete with glowing, yet unsubstantiated, accounts of the profits the author has obtained by using them.Even the more serious attempts, like those of John Murphy, are merely encyclopedic gatherings of indicators, with little effort made to determine their objective utility or profitability;or, like Kaufman's, while addressing a more intelligent, educated technician, too compendious.Sadly, the better books present the reader with barely more than introductions to approaches that are mathematically and computationally more rigorous;and, while they may also indicate further directions of study, do little in the way of providing it.

This book, I am happy to say, avoids all of these objections.

The author discusses and describes a number of statistical methods, and develops them into tools with which to measure and identify market development and direction.And though his instruction is often brief, it is to the point.This adds a certain density to the presentation, but it IS presented.As an example, he uses a quantile segregation of price-data to reduce the adverse effects of noise in a moving average.He indicates in two sentences the formula to use in EXCEL to obtain it. Testing of these tools is, of course, the responsibility of the reader, but there is no arguing the fresh, original character of these methods, and the patience with which the author explains them.If nothing else, it stimulates the imagination.Wait, that is everything, isn't it?

Very highly recommended.

Original work - Truly Great
This is a piece of original work that you rarely see in financial books. I find the author's web site a great pratical complement to the book. The combination gives you the theory and pratice to profit in the market. I have to respectfully disagree with the bad review given before. You simply have to be the right target for the book; more on the advanced side. Please preview the book for yourself but I assure you that the content and ideas are simply original and made me money so far.

A pretty decent book on the latest innovations in trading
I'm not very sure I agree with the other reviewer's assessment of the book. Luckily for me, I read the book before coming across the review and corresponding rating on Amazon.
This book provides a very decent overview of the latest thinking about market dynamics. Trading systems being what they are, mechanical representations of underlying market mechanisms, it really helps if the (would-be) trader were to understand the reasoning behind system internals. This can further lead to a proper grasp of "how, when and which": how to tweak a system, when to tweak it, and which system to modify.
I heartily recommend this book to all those who are interested in exploring the fascinating world of markets that lie underneath our trading systems. Just don't expect to get rich quickly by reading this.

save your time and the trees
such a bad book..completely meaningless..it isnt about long/short market dynamics at all. the author doesnt even know how the market really operates and just citing some academic research as if he really knows what they mean. ... Read more

Product Description
Silvia Rodney was the niece of The Spider. When Warwick first joined the supercriminal's band, he had made a pretense of paying a great deal of attention to her—it gave him an excuse for visiting so much at the mansion on American Boulevard where The Spider had his home and headquarters. This acquaintance had developed into love with a speed that was truly amazing. John Warwick, a man of society, hunter of big game, world roamer in days gone by, the man many women had sought for husband and could not capture, had fallen in love with the sweet, unassuming girl—and had been forced through circumstances to hold his tongue.For from Silvia Rodney had been kept the knowledge of her uncle's true character. She had been taught to believe that he was the representative of a certain European power, and that he was working in the interests of humanity.John Warwick was too honest to speak to her of love without telling her that he was a criminal of a sort—and The Spider had forbidden him doing that. He knew that Silvia Rodney returned his love, and was wondering why he did not ask her to become his wife.Warwick had been a ruined man when he had joined The Spider's band. But, because of his excellent work, he had gathered a small fortune again; and The Spider, by way of reward, also had engineered a campaign on the Stock Exchange that had netted Warwick almost a quarter of a million dollars.Warwick was all right financially now, yet he remained true to The Spider, not through fear of what might happen to him if he left the supercriminal's band, but out of gratitude to The Spider for his help.There were times when John Warwick wished that he might marry Silvia Rodney and cease his nefarious work. It had not been so very nefarious at that. The Spider and his followers committed thefts, but generally on the side of right. Ill-gotten gains were what they generally took from their victims; and now and then The Spider contracted to obtain and return something that had been procured by improper means from its rightful owner. There were worse criminals than The Spider and his people, but nevertheless, what they did was outside the law. ... Read more

Product Description
In 2005, Joel Greenblatt published a book that is already considered one of the classics of finance literature. In The Little Book that Beats the Market—a New York Times bestseller with 300,000 copies in print—Greenblatt explained how investors can outperform the popular market averages by simply and systematically applying a formula that seeks out good businesses when they are available at bargain prices. Now, with a new Introduction and Afterword for 2010, The Little Book that Still Beats the Market updates and expands upon the research findings from the original book. Included are data and analysis covering the recent financial crisis and model performance through the end of 2009. In a straightforward and accessible style, the book explores the basic principles of successful stock market investing and then reveals the author’s time-tested formula that makes buying above average companies at below average prices automatic. Though the formula has been extensively tested and is a breakthrough in the academic and professional world, Greenblatt explains it using 6^th grade math, plain language and humor. He shows how to use his method to beat both the market and professional managers by a wide margin. You’ll also learn why success eludes almost all individual and professional investors, and why the formula will continue to work even after everyone “knows” it.

While the formula may be simple, understanding why the formula works is the true key to success for investors. The book will take readers on a step-by-step journey so that they can learn the principles of value investing in a way that will provide them with a long term strategy that they can understand and stick with through both good and bad periods for the stock market.

As the Wall Street Journal stated about the original edition, “Mr. Greenblatt…says his goal was to provide advice that, while sophisticated, could be understood and followed by his five children, ages 6 to 15. They are in luck. His ‘Little Book’ is one of the best, clearest guides to value investing out there.”Amazon.com Review
In 2005, Joel Greenblatt published a book that is already considered one of the classics of finance literature. In The Little Book that Beats the Market—a New York Times bestseller with 300,000 copies in print—Greenblatt explained how investors can outperform the popular market averages by simply and systematically applying a formula that seeks out good businesses when they are available at bargain prices. Now, with a new Introduction and Afterword for 2010, The Little Book that Still Beats the Market updates and expands upon the research findings from the original book. Included are data and analysis covering the recent financial crisis and model performance through the end of 2009. In a straightforward and accessible style, the book explores the basic principles of successful stock market investing and then reveals the author’s time-tested formula that makes buying above average companies at below average prices automatic. Though the formula has been extensively tested and is a breakthrough in the academic and professional world, Greenblatt explains it using 6^th grade math, plain language and humor. He shows how to use his method to beat both the market and professional managers by a wide margin. You’ll also learn why success eludes almost all individual and professional investors, and why the formula will continue to work even after everyone “knows” it.

While the formula may be simple, understanding why the formula works is the true key to success for investors. The book will take readers on a step-by-step journey so that they can learn the principles of value investing in a way that will provide them with a long term strategy that they can understand and stick with through both good and bad periods for the stock market.

As the Wall Street Journal stated about the original edition, “Mr. Greenblatt…says his goal was to provide advice that, while sophisticated, could be understood and followed by his five children, ages 6 to 15. They are in luck. His ‘Little Book’ is one of the best, clearest guides to value investing out there.”

An Exclusive Q&A with Author Joel Greenblatt

It's been five years since you first published The Little Book That Beats the Market.Have your thoughts changed at all about the effectiveness of value investing? In my mind, the principles of value investing have not changed.As we've learned yet again, markets can be volatile and emotional.They often go to extremes of pessimism and optimism, and prices can and often do fluctuate wildly and significantly over short periods of time.As a result, Mr. Market can provide some excellent opportunities to purchase bargain priced stocks when people are unduly pessimistic.This is where value investing comes in.Buying companies below their true value is the road to being a successful investor.The magic formula found in the Little Book seeks to buy a group of above average companies but only when they are available at below average prices.Because it is a formula, it seeks to do this in an unemotional way that can take advantage of the market's mood swings.Ben Graham taught us these lessons in the 1930s and the principles still hold as well today as when he first wrote them down more than 70 years ago. Do you think individual investors should re-think their investment strategy as a result of the recent market crash and recession? I think the best lesson that can be learned from the recent price drop and partial recovery is that stocks are volatile.For most people, stocks should represent a portion of their investment portfolio because I still believe that over the long term they will provide superior returns relative to most alternative investments.However, whether that portion of an investment portfolio devoted to stock investments should be 40% of an investor's portfolio or 80% is a very individual decision.How much are you willing (or able) to lose before you panic out?There's no sense investing such a large portion of your assets in a long-term strategy if you can't take the pain when your chosen strategy doesn't work out for a period of years.The "magic formula" found in the book can underperform the market for years.It can also lose money if the market goes down.But it is also a strategy that makes a lot of sense and that should work well for investors over the long term. Can you explain the Magic Formula's basic strategy in one sentence? The Magic Formula strategy is a long-term investment strategy designed to help investors buy a group of above-average companies but only when they are available at below-average prices. You make reference in the new afterword to receiving a number of emails from readers after the The Little Book That Beats the Market was published.Could you share with us some of the comments you received? I received many emails after the first edition of the book was published.Some suggested that the strategy was working great for them while others reported that they had waited over a year and the strategy was underperforming.These results and emails are consistent with the message of the book.Over the five years since the book was published, the strategy earned very nice returns for investors, but the ride was bumpy.Not only did the formula underperform for a period of time, in 2008 it lost money along with the market.Overall, the formula performed quite well but only for those who maintained a true long-term perspective.This is easier said than done.In the new afterword, I try to give more facts, color and information about the strategy that I hope will help investors be successful in taking full advantage of the magic formula over the long term.Of course, I also got plenty of emails where investors just asked us to do it all for them.Other emails asked us to apply the formula internationally.As a result, we have worked on both of these projects over the last several years. In the new afterword, you write "Beating the market isn't the same thing as making money."Can you elaborate on this and why it's a difficult concept to swallow at times? Since the strategy involves buying a portfolio that is 100% long the stock market, if the stock market goes down, our portfolio may well go down, too.If the market drops 40% and we beat the market by losing only 38%, this is small consolation.As I say in the afterword, while I firmly believe that for most people an investment in the stock market should represent a substantial portion of your investment portfolio, how big that portion should be can vary widely.For some it can be well over half of assets, for others well less than half might be appropriate.The magic formula strategy is a wonderful strategy for that portion of your portfolio that you choose to invest in the stock market.In fact, I truly believe that the magic formula remains one of your best options.How much to invest in the stock market, however, is a very personal decision that should be partially based on your ability to withstand short-term negative price movements.One encouraging fact, though, discussed in the afterword is the performance of our large cap portfolio over the last decade.Over that period, the market as measured by the S&P 500 was actually down, yet our backtests showed that following the formula over those same ten years would have resulted in a more than tripling of your money.Unfortunately, those great long-term returns came with plenty of bumps, including some not so short periods of losses and underperformance.But once again, if the formula worked every day, every month and every year, everyone would follow it and it would be ruined.Fortunately, it's not so great, and as a result I strongly believe that long-term investors should continue to benefit from the magic formula for many years to come.

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Customer Reviews (232)

still working the magic formula
If you bought the original, no need to buy this new little book that "still" beats the market.Same magic formula, but, have to say sound and profitable simple formula as explained step by step in the book as follows:
1. Screen and sort companies from higher to lower by return on capital (EBIT/Net Working Capital + Net Fixed Asset).
2. from the resulting list of high return on capital screen and sort again, but now for Earnings Yield (EBIT/Enterprise Value).
3. Buy the 20 to 30 of the top-ranked companies obtained from the 2nd step.
4. Sell each stock after holding it for a year. For taxable purpose sell winners after holding them for few days more than one year and sell losers after holding them a few days less than a year.
5. Use the proceeds from the sales to replace the sold companies with an equal number using step 1 and 2. Continue with this process for many years.

Let me share, that this formula still works in the Mexican market where I have used it, just with a small adjust or clarification for the selling step (maybe I misunderstood the statement sell each stock...), no doubt to sell the loser without hesitation, but, just before selling the winners stocks, I perform the screen & sort of steps 1 & 2, if the winners stocks already held one year are still in the top ranked companies I kept them and avoid having unnecessary trading costs.

Joel greenblatt Little Book
to the point and informative.free web site is not as informative as it could be.earnings for companies under review are not well investigated.I have viewed magic formula offerings with negative PE's. Good and sustainable growth comes from earnings that are consistant and not based on one time events. When a company is dropped from the list what does that indicate?
Was it dropped because of a fundamental shorfall or because of evaluation? When does a company of great consistant value become a bargin in the marketplace?When Mr. Market is driven by fear, fear of the unknown and reduces the value to unreasonable levels or because the potential for return of capital is overlooked.Thetrue value of a company is only the return it can produce; the assets it has that can be liquidated or accquired by willing investors.The magic formula offered to us by Mr. Greenblatt is a viable alternative to various market stratiges but it must be applied by spreading the risk and thus requires a large capital outlay. I prefer to limit my exposure and capital by a more quantative approach.

Benjamin Graham: "too good to be true."
The "Magic Formula" by Joel Greenblatt strongly resembles the method put forth by Benjamin Graham in 1976. In 1976 Benjamin Graham was interviewed by the Financial Analysts Journal. Graham proclaimed to have found a simple method for successful value investing:

Imagine - there seems to be practically a foolproof way of getting good results out of common stock investment with a minimum of work. It seems too good to be true. But all I can tell you after 60 years of experience, it seems to stand up under any of the tests that I would make up. I would try to get other people to criticize it.

Look on the internet for the following three interviews if you want to learn more about the "Magic Formula" by Benjamin Graham:
A conversation with Benjamin Graham, Financial Analysts Journal, 1976
An Hour with Mr. Graham, Financial Analysts Journal, 1976
The Simplest Way to Select Bargain Stocks, Medical Economics, 1976

Informative and Entertaining
Short, sweet and to the point, Mr. Greenblatt's "little book" is an excellent read. The books major theme is that investing is a difficult proposition yet that it can be done successfully if one finds and dedicates himself to a sound investing strategy. Just such a strategy is the described by the author.

The essence of the strategy is to buy good companies at bargain prices (where a good company is defined as one that has high returns on investment and where a bargain price is defined as a price whose ratio to earnings per share is low). The idea is that stocks with a low ratio of price to earnings per share are undervalued and that in time the market will recognize and correct this. Furthermore, the fact that the stocks considered are those of good companies is a way to help make sure that the stock is truly undervalued.

The strategy is simple enough and the case in favor of it is hard to argue against. I would recommend this book to anyone interested in learning about investing in the stock market.

waste of a lot of time
lots of stories about his son, Sailing, teaching, simple humor etc and about 10 minutes of real advice on how to select companies to invest in based on two beliefs regarding earnings and returns. VEry Basic book more for teenagers. I'm no big investment garu but....I would save the money and buy something with some substance.
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