Wisdom on Value Investing offers author Gabriel Wisdom'sinsights on succeeding in difficult markets. One of his favoriteapproaches-which is part classic value investing and partbehavioral finance-is called "The Fallen Angels InvestmentStrategy," and it prepares investors to look past short-term valueassumptions in order to capture profits. Throughout this book,Wisdom will show you how to capitalize on value plays where thefundamentals are actually strong, but the "general wisdom"surrounding the security has turned negative. He discusses howstocks with the most promise are ones that Wall Street has markeddown without regard to their underlying value, and reveals how thistype of intrinsic value discount provides a margin of safety duringdifficult times, and substantial upside rewards for those who findthem early enough.
- Takes value investing one step further by mixing significantamounts of behavioral finance into the analysis
- Prepares investors to take advantage of other's mistakes
- A time-tested strategy for any type of market-up or down
A classic look at value investing with a twist, this book willput you in a better position to succeed in both bull and bearmarkets.
Includes a Foreword by Mary Buffett and David Clark, authors ofBuffettology.
|Product dimensions:||6.20(w) x 9.10(h) x 0.90(d)|
About the Author
Gabriel Wisdom is a co-founder of American Money Management,LLC, and one of the nation's enduring radio personalities.Beginning in 1968 as an underground FM disc jockey, his financialcommentaries have appeared in syndication, on CBS Radio, and onNPR. He's managed more than a billion dollars for wealthy investorssince 1983, is comanager of two public mutual funds, and hosts adaily program carried on affiliates of the Business Talk RadioNetwork. Wisdom serves on several boards, including the HarvardBusiness School Alumni Club of San Diego, and is a licensed privatepilot.
Joe Tash's earliest recollection of asset gatheringoccurred on a trip to Florida with his parents when he was five orsix years old, with his triumphant victory in a seashell–collecting contest. Currently, Tash is a popular writerfor several newspapers and publications.
Table of Contents
Chapter 1 Ten Traits of The World’s Greatest BargainHunters 1
Chapter 2 Fallen, Not Falling (An Important Distinction) 15
Chapter 3 Great Moments in Bottom Fishing: The Fallen AngelsHall of Fame 29
Chapter 4 Buy CATS (Cheap and Timely Securities), Avoid Dogs35
Chapter 5 Cycles and Wall Street’s Wheel of Fortune 45
Chapter 6 Who Wants to Be a Billionaire? 57
Chapter 7 Time Arbitrage, The Rational Investor’s Ally69
Chapter 8 The Pilot’s Checklist For Safe and EffectiveInvesting 77
Chapter 9 The Science of Demographics: A Glimpse into the Future87
Chapter 10 How to Pick Stocks: The Fallen Angels Formula 95
Chapter 11 Profit from Panic, Corrections, and Volatility107
Chapter 12 The Little Chapter that Makes You a Better Investor119
Chapter 13 Will You Know When to Sell? 131
Chapter 14 Real Estate: The Other Fallen Angel Opportunity145
Chapter 15 Ten Fallen Angels for the Next Five Years 155
Chapter 16 Stocks and Bonds and Rock and Roll: My Story 163
Appendix: Recommended Books, Web Sites, and
Helpful Sources 169
About the Authors 173
What People are Saying About This
"If you are looking for a book that explains how to screen stocks for a long-term investment, then start with Wisdom on Value Investing. You'll find it as entertaining as it is informative. His tips just might make you a bundle of money, or protect you from costly mistakes."--(Thomas Bulkowski, thepatternsite.com)
Most Helpful Customer Reviews
Stock investors come in two basic flavors - ones who follow fundamental analysis and those who follow technical analysis. I tend to follow the more technical analysis route but I've learned, especially in today's environment, that ignoring the fundamentals can lead to a great deal of trouble. Problem is that most fundamental analysis books seem to be written by accountant/finance/MBA types that get so bogged down with formulas that it stops making sense after the first P/E ratio. Admittedly I am not a math type so I need it given to me very pure and simple. Gabriel Wisdom has written the book I'd been looking for. Fundamentals are explained in simple language and you are shown how to use them to screen for what Wisdom calls Fallen Angels - stocks that have great investment potential but that are for some reason being sold at a discount to their true value. That is the heart of what fundamental analysis is and what value investing (the type of investing based on the fundamentals) is about - finding a bargain. Wisdom takes you step by step through how to recognize a bargain and where to look for the information (most of it can be found for free on the WEB). Two items in the book I found particularly useful were ten traits of the world's greatest bargain hunters (think Warren Buffett) and the pilot's checklist for safe and effective investing (Wisdom is a pilot so he used his experience in that area and applied it to investing). Also included were discussions on how business and political cycles impact investing and on time arbitrage; subjects that are not often found in investing books. For such a short book, this one packed quite the punch with other items such as the best opportunities to find bargains (an economic downturn might not be so bad after all) and three stock sell signals. Wisdom has a diverse background and did not start off in the financial sector (not to worry, he has earned his financial chops with running his own investment firm, writing financial commentary and earning a degree) which no doubt contributed to his interesting and entertaining writing style. And while he distributes his own e-mail newsletter on Fallen Angels this book was not a 100 page advertisement, he really does show you how to DYI (do it yourself). The one issue with this book can be an asset as much as a drawback - Wisdom does not spend much time or energy in defining terms. He makes no bones about it; if you don't understand what he's talking about, look it up (and he tells you where). This is nice for those of us who have a bit of working knowledge but might be off putting to a complete novice.I am pleased to have this book in my investment reference library and recommend it for anyone interested in finding out what value investing is all about. It would be a great starter investment book but has plenty to offer more experienced investors. Nicely done.