The Five Rules for Successful Stock Investing
The Five Rules for Successful Stock Investing "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." --Christopher C. Davis Portfolio Manager and Chairman, Davis Advisors Over the years, people from around the world have turned to Morningstar for strong, independent, and reliable advice. The Five Rules for Successful Stock Investing provides the kind of savvy financial guidance only a company like Morningstar could offer. Based on the philosophy that "investing should be fun, but not a game," this comprehensive guide will put even the most cautious investors back on the right track by helping them pick the right stocks, find great companies, and understand the driving forces behind different industries--without paying too much for their investments. Written by Morningstar's Director of Stock Analysis, Pat Dorsey, The Five Rules for Successful Stock Investing includes unparalleled stock research and investment strategies covering a wide range of stock-related topics. Investors will profit from such tips as: How to dig into a financial statement and find hidden gold...
Stats for nerds
3recommend
4mentions
3people
2013–2020years
100% recommend
Mentions per year
What Hacker News says
- The book that provided me with the proper knowledge about investing in the stock market would be:
The Five Rules for Successful Stock Investing: Morningstar's Guide to Building Wealth and Winning in the Market
The reason I recommend this is because it teaches you how to read IFRS Financial Reports and calculate Discounted Free Cash Flow, with practical examples.
Fun fact: many people have asked me over the years what my secret to investing was, and I've always pointed them to the book, and told them it's basically just about reading and understanding each line the financial reports. It takes a lot of time to do this, and you have to do it every quarter, for all stocks you own, want to own, and keep an eye on. With time you will learn what sections to skip and it gets faster, easier. But you have to get your information from the reports themselves. To this day not even one of those people has followed my advice and read the book. I guess the thought of putting in effort scared them away as they were also asking me if they can find the reports summarized on some website and use that as their source if information, or if they can pay for some service to calculate discounted free cash flow for them. To me, having the summary and calculation alone is pointless, and it's also the fastest part of the process. What's important is to understand the reason behind the data in the report, something which the summary eliminates. I have not yet attended a Shareholders Meeting for any company, but this also helps with understanding the reasons behind the data.
- A few recommendations, which follow more fundamental investing, some people have already mentioned:
One Up on Wall Street, 2nd ed. Lynch, Peter - explains what i think is a good way of looking at the stock market
Common Stocks and Uncommon Profits by Philip A. Fisher - shows importance of having investment philosophy
Ahead of the Market: The Zacks Method for Spotting Stocks Early - by Mitch Zacks - shows the importance of quarterly earnings
The Five Rules for Successful Stock Investing: Morningstar's Guide to Building Wealth and Winning in the Market - how to perform proper analysis on company
How to Make Money in Stocks: A Winning System in Good Times and Bad by William J. O'Neil - shows example of growth/momentum investing
- Rather than a short comment a few different books I could recommend that you might like on this hobby/topic are:
-Your life or your money (personal finance more than investing) -The Warren Buffett Way -The Five Rules for Successful Stock Investing: Morningstar's Guide to Building Wealth and Winning in the Market...
- Ah if you read Intelligent Investor you are ahead of most and The Warren Buffett Way would then just be a light fun rehash read (usually the book I recommend before Intelligent Investor). The Five Rules for Successful Stock Investing at least for me was a good book that explained reading financial reports. I'll check out 4 Pillars of Investing, thanks
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