|
The Five Rules for Successful Stock Investing: Morningstar's Guide to Building Wealth and Winning in the Market (平装)
by Pat Dorsey
| Category:
Investing, Stock investing, Investment |
| Market price: ¥ 198.00
MSL price:
¥ 168.00
[ Shop incentives ]
|
| Stock:
Pre-order item, lead time 3-7 weeks upon payment [ COD term does not apply to pre-order items ] |
MSL rating:
 Good for Gifts |
| MSL Pointer Review:
Filled with strong and unbiased advice, this book provides readers with the type of quality guidance that only Morningstar can offer. |
| If you want us to help you with the right titles you're looking for, or to make reading recommendations based on your needs, please contact our consultants. |
|
| |
AllReviews |
1 Total 1 pages 10 items |
|
|
(Christopher C. Davis (Chairman, Davis Advisors) (MSL quote), USA
<2006-12-28 00:00>
By resisting both the popular tendency to use gimmicks that oversimplify securities analysis and the academic tendency to use jargon that obfuscates common sense, Pat Dorsey has written a substantial and useful book. His methodology is sound, his examples clear and his approach timeless. |
|
|
J. Turner (MSL quote), USA
<2006-12-28 00:00>
This book is best suited to those that have some understanding of stock investing, and are wanting take greater control over managing their portfolio. Unlike so many "how tos" on stock investing, Morningstar's Guide starts with a basic explanation of understanding financial statements (something that too many investors simply ignore), and building upon those basics then introduces the reader to how to value the stocks market value relative to "real" value. Finally, the Guide ends with an almost 100-page analysis of the pertinent characteristics of stocks in major industry groups (e.g. energy; healthcare)… For a great and complete primer, this one hits the mark. |
|
|
A reader (MSL quote), USA
<2006-12-28 00:00>
Borrowed this from the library and decided to buy it after reading. Dorsey gives the "morningstar" method of evaluating stocks, which emphasizes safety through choosing stocks with a wide "economic moat," cash flow and income to survive worst case scenario. In fact, one of his rules for investing is to envision the worst case scenario for each stock. The method he outlines here is extremely rigorous and time-consuming. I don't see how anyone could take the time to evaluate each stock in a 10-20 stock portfolio using his method unless you didn't do anything else, i.e, unless you're a professional investor. That said, he does give lots of good points and cautions. The section on evaluating a company's financial statement is very thorough and detailed. Also valuable is an in-depth chapter on the ins and outs of all the major and minor market sectors, banks, technology, energy, health, and etc. |
|
|
Blee (MSL quote), Hong Kong
<2006-12-28 00:00>
This is a rather readable book abounds with good tips for amateur (or even professional) investors. It tells you which industries to put your money and which not, e.g. Energy is a luscious industry but not Power Generation and why; it tells you why a bank is preferred to an insurance company, and why larger banks are preferred to smaller ones... etc. It also pinpoints the bottleneck of various popular industries and draws our attention to where usually the pitfalls are as far as the management and their financial reports are concerned. It is most insightful in its rather up-to-date descriptions of the nitty-gritty of some popular industries.
However, this book doesn't touch upon asset allocation things like how bonds, commodities and cash could help your investment in stocks. There is little, if at all, on any derivatives. It is not meant to be a replacement of Warren Buffett or Soros or Peter Lynch's wisdom, still less the fundamentals of Grantham. In particular, note that with the change of a single element in investment environment (& there are huge differences between Asia or BRIC and US!!!), and then the choice of stocks should or could be the other way round, and if one chooses to follow the advice of this book to its letters, it might prove to be very costly.
|
|
|
Colin Bisasky (MSL quote), USA
<2006-12-28 00:00>
I had a bit of a tough time going through certain parts of this book, partly because I'm just not the kind of person that can pick apart financial statements. But it does help you go through them [financial statements] and learn what they mean, and how cash flows through a company. If you can understand what they are trying to tell you; you are WAY ahead of your average investor, even the smart ones.
Most importantly, they teach you about "economic moats". These are the strengths of the company that keep competition at bay for a long period of time, allowing the company to continue to grow for years (and thus, the stock price and dividends as well). It also goes through the businesses represented in the stock market, sector by sector, to tell you how to analyze a particular stock from each sector and its good and bad characteristics.
A little tough, and certain parts require some math, but even if you don't "get it" all 100%, you're still way ahead of your average investor, as I said. You definitely come out of this book with more knowledge about companies and mistakes made by average investors than you knew before you turned the first page.
My only wish is that some of its more acute parts didn't go over my head quite so high...and that is why I give it 4 instead of 5 stars. Otherwise, a FANTASTIC book. Definitely pick it up and don't be afraid of not understanding all of it: you'll at least absorb something out of it that will get you ahead.
|
|
|
Jeff Lipkes (MSL quote), USA
<2006-12-28 00:00>
Have been meaning to put in a good word for this book for a long time. It's a gem. I've read an embarrassingly large number of introductions to investing in equities and this is probably the best. Other books purport to tell you how to identify hot stocks; Dorsey shows how to value companies. This isn't just a matter of understanding PE ratios and other traditional metrics, which most books explain more or less adequately. Instead, it means analyzing balance sheets and cash flow and income statements. Five Rules provides as reader-friendly an introduction to assessing a company's financial statements as I've come across, with plenty of real-world examples. The object in the end is to determine the present value of a company's future cash flows, and Dorsey's explanation of a simplified version of Fisher's and William's discounted cash flow model is lucid and lively. Clorox is the company evaluated in this chapter, and en route there are instructive comparisons of HP and Dell, Best Buy and Circuit City, and, finally, AMD and Biomet. Chapter 8, Avoiding Financial Fakery, is particularly helpful. Obviously, having read this book and nothing else, you're not going to be able to spot something fishy in the footnotes to Microsoft's income statement that has escaped the attention of all the analysts. But for someone without a background in accounting, Five Rules is a godsend.
Dorsey then conducts a very informative tour d' horizon of 13 industries. It should go without saying that before you invest in a company, you'd want to find out something about the economics of its industry, so you can compare apples with apples. The chapter on health care is especially good, but I found them all excellent.
In an Ameritrade ad that aired this week, a teenager asks her dad for $80 for a pair of jeans. The dad is nonplused, but the girl assures him that everyone is buying these jeans. He asks her who the manufacturer is, promptly logs onto Ameritrade, checks a chart, and buys the company's stock. The guy then gives his daughter the $80, a reward for the hot tip, presumably. He might do OK this time, but you have to figure he'd be a lot better off in the long run investing a fraction of that $80 in Five Rules.
Bottom line: there are a ton of books on trading strategies, but if you're looking for a practical book on value investing, this is the best. |
|
|
DJ (MSL quote), USA
<2006-12-28 00:00>
adly, it's also overlooked by many and doesn't seem to get the "shelf space" it deserves. I guess in a way that's good - the more knowledgeable the masses become, the harder it is for us folk to capture and exploit pricing inefficiencies in the market (greater fool theory).
Anyways, back to the book: It is pure genius - insightful and easy to read.
Dorsey is a CFA who knows stocks like the back of his hand.
The best part about this book is when Dorsey goes off and breaks each sector down to its most important metrics for study.
For those just beginning to dabble in the market, I can't think of a better introduction - in fact, if this is your first book on stocks, consider yourself way ahead of the the crowd, who is probably off somewhere reading Suze Orman, buying expensive mutual funds that lag the S&P, and drinking 5$ latte when they should be buying SBUX and betting on rapid expansion abroad.
|
|
|
A reader (MSL quote), USA
<2006-12-28 00:00>
This book is the best book on fundamental investing that I have ever read. It is clear, concise and filled with simply stated useful information. For anyone interested in value investing this is a perfect place to start. Financial information is demystified, and the worth and usefulness of each financial statement is explained methodically and completely enabling any investor to analyse a company in a logical and competent manner. Financial ratios and the importance of each is covered.
Additionally, and unusually, a number of industries are discussed, giving the salient factors to consider in each.
There is also an excellent bibliography for additional reading.
All in all, this is a superb book.
|
|
|
A reader (MSL quote), USA
<2006-12-28 00:00>
The best investing principles, as clearly reiterated here, are stable and evergreen. As an investor, you'll welcome author Pat Dorsey's unambiguous, straightforward presentation of the always valid wisdom of the markets. This conveniently organized book offers several chapters of general relevance to investors in all markets and industries, including an industry-by-industry examination of the determinants of value. The title is cute, but the content isn't about the title's rules - it is about learning and obeying the basics of stock investing. We recommend the author's long term perspective. Many of the directions he sets for potential investments could still be valid years hence. |
|
|
Miras (MSL quote), USA
<2006-12-28 00:00>
The Five Rules for Successful Stock Investing is a guide to value investing by Morningstar's Director of Stock Analysis Pat Dorsey and the folks at Morningstar, Inc. The book's goal is to educate investors in how to "find wonderful businesses and purchase them at reasonable prices." Its title is a little misleading in that the "Five Rules" are a small part of this book.
The five principles to which the title refers are:
1. Do your homework.
2. Find companies with strong competitive advantages (or economic moats).
3. Have a margin of safety.
4. Hold for the long term.
5. Know when to sell.
Those are vague principles, but most of this book is dedicated to telling you just what homework you need to do and exactly how to do it. Pat Dorsey and Morningstar are advocates of long-term investing who are skeptical of trading and portfolio churning, so this book's intended audience is value investors. No technical analysis here. This is all fundamental analysis, but traders may find the advice on analyzing company finances useful as well.
The Five Rules for Successful Stock Investing has 2 parts: Chapters 1-12 are a "how-to" for analyzing companies, their finances, and determining what their stock should be worth. Key points include how to evaluate a company's competitive advantages, what to look for in financial statements, analyzing a company's management, spotting financial chicanery, and how to determine a company's intrinsic value. This is all fairly complex, and there is math involved, but the book takes you through the process, with examples, explaining why and how every step of the way. Chapters 13-26 provide overviews of 13 industries, from banks to software to industrial materials, including information on what the industries do, how they make money, hallmarks of successful companies, and risks to look out for. Each of these chapters concludes with an "Investor's Checklist" for that sector to help you identify key factors when choosing a stock. The Five Rules for Successful Stock Investing is among the best books I've seen for learning how to pick apart financial statements, and it packs a great deal of advice on evaluating companies within their sectors into one concise and readable volume.
Highly recommended to value investors. |
|
|
|
1 Total 1 pages 10 items |
|
|
|
|
|
|
