We live in a world saturated with the short-term: Who’s up, who’s down? Which stocks rose yesterday, which fell? Did corporate profits rise (or drop) last quarter . . . what’s going to happen this quarter? Is Alan Greenspan raising (or lowering) interest rates . . . what’s the impact?
The superior investor knows that none of this matters. He or she understands that investing is simple, but not in the way most people think. With Jim Glassman as your guide, everything about investing becomes clear. You’ll know what to do, how to behave, and how to profit—whatever the market, the economy, and your stocks are doing.
Superior investors crack the code of investing and practice a coherent philosophy that gives them the strength and confidence to do the right thing no matter which way the economic and financial winds blow. They’re relaxed—calm, cool, and collected—because the secret code provides the foundation for making superior investments, the kind that generate wealth to fund more interesting pursuits, provide for their children’s education, and fund retirement.
* Are not outsmarters—people who try to beat the system through inside advice and superior brainpower—but partakers. They know that the best way to make money is to share in the profits of successful businesses.
* Own a portfolio that looks like the U.S. economy ten years from now.
* Know the kind of investments they should be making (e.g., pharmaceuticals, for-profit education, mind-numbingly boring but extraordinarily profitable companies) and those they should not (e.g., corporate bonds).
* Understand when to start selling the stocks they’ve bought: almost never . . . only when the fundamental reasons why they bought in the first place change.
* Understand how to pick the companies that will make them superior investors.
* See that bear markets are for buying.
We live in a world of increasing uncertainty, but by practicing the principles of The Secret Code of the Superior Investor day-in and day-out for years on end, your future will indeed be superior.
|Publisher:||The Crown Publishing Group|
|Product dimensions:||5.94(w) x 9.54(h) x 1.12(d)|
About the Author
Read an Excerpt
Today, investors are desperate for certainty in an uncertain financial world. They are looking for rigorous, practical, straightforward, tried-and-true advice that applies in both bear and bull markets. That is what this book provides-a set of principles that will give you ballast, helping you keep your investing equilibrium no matter which ways the winds blow. I call the principles a "Secret Code." It's a code in two senses of the word: both as a group of rules to guide you and as a set of tools to decipher a mystery. The truth is, the advice most investors get is garbled, raw, confusing. This book helps you crack the secret code of investing.
It offers specific recommendations on what to buy (for example, pharmaceutical and for-profit education stocks) and what not to (semiconductor stocks, corporate bonds). It tells you how to build the best portfolio for retirement, how to accumulate what you need for your kids' tuition or your trip to Paris, how to find a broker, how to avoid being skewered by taxes, inflation and the stock market's wild volatility.
But, more important, this is a book built on a coherent philosophy of investing-a set of precepts that I have been developing over more than 20 years-by studying and analyzing financial history, by writing about investing as a columnist for such publications as the Washington Post, Reader's Digest and the International Herald Tribune, and by practicing what I preach. It's a code that works. During the debacle of 2000, the portfolio of stocks that my co-author, economist Kevin Hassett, and I recommended in our 1999 book, Dow 36,000, rose smartly. Our top pick, Tootsie Roll Industries--yes, chocolate lollipops in an age of microchips--shot up more than 50 percent. In Dow 36,000, we developed a sophisticated financial theory that led to an enthusiastic view of the stock market for the decade ahead, but we warned investors vigorously that they must follow a specific discipline. In this book I have developed that discipline fully and spell it out in clear detail in a Secret Code of 47 laws.