Monday, October 16, 2006

Book Review "The Neatest Little Guide to Stock Market Investing"

The Neatest Little Guide to Stock Market Investing (Revised Edition)






What Is It About?

The Neatest Little Guide to Stock Market Investing is written by Jason Kelly. Mr. Kelly has written several books and publishes an advisory newsletter, all of which can be found at JasonKelly.com.

This book is an introductory guide on how to think about the stock market and evaluate stocks. Some of the topics covered include how to make a trade; a study of successful “master” investors such as Peter Lynch, Warren Buffett, William O’Neil, and Phil Fisher; where and how to find research material; and how to build a core portfolio using easy to understand strategies.

What Did I Get Out Of It As A New Investor?

This is an excellent book for a new investor. It provides an overview of the general concepts all investors must grasp and then gives concrete specifics to apply this knowledge.

One of the best parts of this book is Chapter 2 where the author reviews several methodologies of successful investors. What is unique is that the author then provides a section where he highlights the key points of the “master” investors worthy of retention. For example, if the reader is having trouble understanding what it is that made Peter Lynch successful, the author makes it easy by listing those crucial points worthy of retention. For example, he cites Lynch's suggestion that you prepare a two-minute narration as to why you are buying a particular stock to reinforce the decision making process.

This book also offers several different strategies which even a beginning investor can implement. While no investor should blindly follow anyone else’s strategy, having a strategy explained and demonstrated in an easy to understand manner goes a long way in helping a new investor create a template of his own.


The Good News

If you are a new investor looking for a clearly written book which covers most (if not all) the topics you are wondering about, this is a great book. Not only does it answer many of the questions a new investor might have, it also provides “how-to” examples.


The Bad News

If you are not a new investor this book may not be for you. For the new investor caution must be urged. While the author’s track record has been audited (see CXO Advisory Group Guru Grades ) and is above average in comparison to other noted investors, no investor should ever blindly follow any strategy without contemplating whether the strategy is right for their personal needs.


The Bottom Line

The Neatest Little Guide to Stock Market Investing is a great book for new investors. I recommend it for purchase.

2 comments:

Stock Market said...

Thanks so much for this! I haven't been this moved by a blog for a long time! You’ve got it, whatever that means in blogging. Anyway, You are definitely someone that has something to say that people need to hear. Keep up the good work. Keep on inspiring the people!
regards:
Stock Market

QUALITY STOCKS UNDER 5 DOLLARS said...

Great book on stock investing.