stocks

I do not personally select my own stocks but wanted to understand the selection rationale used by my personal financial manager. Tim Vick's insight educated me in methods used to analyze and value companies and how to buy stocks below their "net asset value". Specific company examples and easy to understand charts make the book exceptional. He explains why diversification alone does not reduce risk in your portfolio.

Legendary billionaire Warren Buffett is considered by many to be the world's greatest value investor. "How To Pick Stocks Like Warren Buffett" is a book that guides the ordinary investor though Buffett's methods to profit using his bargain hunting strategies.

As Buffett is quoted as saying in the book, "To invest successfully, you need not understand beta, efficient markets, modern portfolio theory, option pricing or emerging markets. You may, in fact, be better off knowing nothing of these. That, of course, is not the prevailing view at most business schools, whose finance curriculum tends to be dominated by such subjects. In our view, though, investment students need only two well taught courses - How to Value a Business, and How to Think About Market Prices."

"How To Pick Stocks Like Warren Buffett" does detail effectively, in easy-to-understand language, Buffett's methodology in analyzing and evaluating businesses and attitudes about market prices, as well as the investment decision-making process, and philosophy about developing good investment habits.

Buffett's rules and methods for investment success are carefully outlined, including the importance of developing a mathematical mind, using a buy-and-hold strategy for companies with strong franchises, growing book value and return on equity, using the magic "15 Percent Rule", comparing stocks to bonds, avoiding losses, and stringing small gains together with takeovers.

"How To Pick Stocks Like Warren Buffett" contains charts and case studies with pertinent and contemporary examples, including studies of technology companies. A chapter, "Your Competitive Advantage Over Buffett - The Internet", details several web sites that provide information, research and investment tools for value-oriented investors.

This book is relevant for value conscious investors who wish to formulate an intelligent and consistent approach to investment management.

This is book says it about Buffet's way of picking stocks, but it is not. I'm sure Buffet would scream if he ever read this book. It not only isn't Buffet's strategy, it is bad advise too. Don't buy this book. If you've read it, disregard everything you learned before you lose money. Read Buffet or Graham and get it straight from the horse's mouth, and learn the intelligent way to pick stocks. This book stinks!