Collection Development: After the Meltdown (Personal Investing), January 2011
Jan 15, 2011
Many current investors involuntarily entered the realm of investments for the first time when 401(k) retirement and other market-tied savings plans became the norm. Homeowners thought their homes were safe, appreciating investments.
Yet the last decade saw two major market corrections. The 2008 mortgage-backed securities crisis induced global panic and a resulting recession that has made all Americans take note of their investments and the volatility of markets. Many investors have seen their portfolios dwindle and at the same time watched their homes plummet in value, while layoffs have proliferated. Some, in the wake of the Bernie Madoff scandal and politicians screaming about Wall Street bailouts, have lost faith in the financial system altogether.
Investment basics
Investing is simple: buy low, sell high. The difficulty is determining what constitutes low and high. Prices are usually highest when everything looks good and lowest when the world is coming to an end, as it appeared to be doing in March 2009. Investing is also about balancing risk with return. The less risk one takes, the lower the expected return. With a multitude of investment choices available, both involuntary investors and those with the true desire to take charge of their finances are left in a quandary.
Major newspapers like the Wall Street Journal and three major television networks (CNBC, Bloomberg, and Fox Business) are devoted to providing news on financial markets. Their companion websites and countless others like Yahoo! Finance, TheStreet.com, and MSN Money provide even more on-demand coverage. The wealth of detail provides the blessing of access and the curse of overabundance. Owing to the quantity, range, and shifting nature of investing websites, coverage here will be limited to books and DVDs.
An informed investor = a successful investor
In investing, knowledge is power, and those who know will make money at the expense of those who don’t. The problem comes in finding the right alchemy to turn mounds of data into the knowledge that equals investment gold. Financial success requires understanding one’s limitations and the bigger picture of why investments do what they inevitably do—fluctuate.
The selective bibliography below includes titles that cover the stages of investing from gathering funds and making choices to preserving assets. Their scope is limited to financial assets such as stocks, bonds, commodities, and investment vehicles, including mutual funds and exchange-traded funds (ETFs). There are also works covering possible economic impacts on investments, market dynamics, and investor psychology. The advice runs from doom-and-gloom to stay-the-course.
Many of the titles provide practical how-to skills, some give background information, and others encourage and supply moral support. Taken as a whole, they offer a means for individuals better to understand investments, their investor risk tolerance, and factors that may affect their portfolios and overall financial well-being. In turbulent times, investors who have mastered discipline and conviction will do better in overcoming greed and fear.
While a number of major publishers release personal investment books, two series published by John Wiley stand out: “The Little Book” series includes advice from various investment authorities, while the “For Dummies” series provides practical tips.
Dump out-of-date performers
The general methods of investing are timeless, but readers will find that newer works that take into account recent market events are more pertinent. The 2008-09 sell-off affected historical returns. Works from the 1990s referring to DOW 36,000, or the new investment rules of the dot.com era, would stand out for their dated perspectives. Books from the last decade promoting house flipping are probably out of sync with today’s realities, too. Many of the more durable investment titles return in new editions periodically. Care must be taken to keep titles that have ongoing historical or theoretical value.
Starred [
] titles below are core purchases for most libraries.
WHERE DO WE GO FROM HERE?
Bernstein, William J. The Investor’s Manifesto: Preparing for Prosperity, Armageddon, and Everything in Between. Wiley. 2010. 201p. illus. bibliog. index. ISBN 9780470505144. $24.95.
Touching on lessons from the dot.com and 2008 market sell-offs, financial writer Bernstein cogently discusses market and investor psychology, asset allocation, the unpredictability of returns, how to keep costs low, and, ultimately, how to avoid dying poor.
Boeckh, Anthony. The Great Reflation: How Investors Can Profit from the New World of Money. Wiley. 2010. 314p. illus. index. ISBN 9780470538777. $34.95.
After laying out the post-2008 state of the U.S. economy and the inflation/deflation dangers as the Federal Reserve attempts to stimulate activity in the shadow of massive debt deleveraging, economist Boeckh then presents various investing scenarios.
Conrad, Bud. Profiting from the World’s Economic Crisis: Finding Investment Opportunities by Tracking Global Market Trends. Wiley. 2010. 446p. illus. index. ISBN 9780470460351. $27.95.
Economist Conrad persuasively argues that the 2008 financial crisis is a stage in a massive U.S. debt deleveraging, and that massive government deficits and Fed actions will bring about inflation and a weak U.S. dollar. He advises investing in energy, food-based commodities, interest rate futures, and gold.
Cramer, James J. with Cliff Mason. Jim Cramer’s Getting Back to Even. S. & S. 2009. 352p. index. ISBN 9781439158012. $26.
NBC’s Mad Money host delivers various strategies on how to approach the stock market following the declines of 2008 and 2009 and future volatility, such as seeking safety in high-quality dividend-paying stocks.
Schiff, Peter D. The Little Book of Bull Moves: How To Keep Your Portfolio Up When the Market Is Up, Down, or Sideways. rev. & exp. ed. Wiley. 2010. 276p. ISBN 9780470643990. $19.95.
The author of Crash Proof 2.0 paints a frightening economic picture of the coming decade and prescribes investing in nondollar assets such as gold, commodities, and foreign materials–oriented stocks.
Stein, Ben & Phil DeMuth. The Little Book of Bulletproof Investing: Do’s and Don’ts To Protect Your Financial Life. Wiley. 2010. 205p. illus. ISBN 9780470568057. $19.95.
Stressing cautious spending and retirement preparation, economist Stein and investment adviser DeMuth present a simple, low-cost portfolio of equity and bond mutual funds that they back-tested to provide superior performance with minimal volatility.
Wiedemer, David & others. Aftershock: Protect Yourself and Profit in the Next Global Financial Meltdown. Wiley. 2010. 273p. illus. bibliog. index. ISBN 9780470481561. $27.95.
Following up on their America’s Bubble Economy (2006), the authors identify the U.S. dollar and government debt as likely bubbles to burst. They look to gold and other commodities as hedges while exploring how the U.S. economy may evolve out of this next probable crisis.
BASICS
Clements, Jonathan. The Little Book of Main Street Money: 21 Simple Truths That Help Real People Make Real Money. Wiley. 2009. 194p. illus. ISBN 9780470473238. $19.95.
This gentle but probing introduction to money management and investing by a personal finance columnist stresses saving more or paying down debt instead of embracing additional investment risk.
Krantz, Matt. Investing Online for Dummies. 7th ed. Wiley. 2010. 414p. illus. index. ISBN 9780470769263. pap. $24.99.
Covering investment basics, USA Today reporter Krantz tells how to make and evaluate investments online, includes hundreds of useful websites, and explains the fundamentals of online accounts, asset allocation, and doing research.
Malkiel, Burton G. & Charles D. Ellis. The Elements of Investing. Wiley. 2010. 154p. illus. bibliog. index. ISBN 9780470528495. $19.95.
Two well-known investing authorities distill investing down to the very basics of saving early and regularly, holding down investment costs and taxes, diversifying across asset classes, and staying focused on long-term goals despite fluctuating markets.
Quinn, Jane Bryant. Making the Most of Your Money Now. rev. ed. S. & S. 2009. 1242p. illus. index. ISBN 9780743269964. $35.
The substantial investment sections in financial writer Quinn’s imposing work cover the selection of mutual funds, bonds, stocks, and other asset classes that are appropriate for particular times of life and goals. (LJ 12/09)
Sethi, Ramit. I Will Teach You To Be Rich. Workman. 2009. 266p. illus. index. ISBN 9780761147480. pap. $13.95.
A financial blogger irreverently cajoles his target audience of twenty- and thirtysomethings to be more conscious of spending, cut down on debt, and invest for the long run with low-cost index funds.
MARKET DYNAMICS
Ellis, Charles D. Winning the Loser’s Game: Timeless Strategies for Successful Investing.5th ed. McGraw-Hill. 2010. 234p. illus. bibliog. index. ISBN 9780071545495. $29.95.
This penetrating study by an institutional investment advisor argues that individuals cannot win in markets now dominated by professionals. He advises readers to base their investments on diversified low-cost index funds after assessing personal goals, time frame, and risk tolerance.
Malkiel, Burton G. A Random Walk Down Wall Street: The Time-Tested Strategy for Successful Investing. 9th ed. Norton. 2007. 414p. illus. index. ISBN 9780393062458. $29.95; pap. ISBN 9780393330335. $18.95.
The random walk theory dictates that stock market moves cannot be predicted. After examining market behavior and debunking various forms of expert analysis, economist Malkiel emphasizes the value for individuals of broad-based low-cost index funds.
Taleb, Nassim Nicholas. The Black Swan: The Impact of the Highly Improbable. 2d ed. Random. 2010. 444p. illus. bibliog. index. ISBN 9780812973815. pap. $17.
The new edition of this insightful 2007 title includes an extended essay that places the 2008 crisis in the context of a frail banking system bound to fail and argues that we need to develop more robust financial systems. (LJ 4/15/07)
INVESTOR PSYCHOLOGY
Mind Over Money: How Human Psychology and Finance Interact. color. 56 min. Twister Films for NOVA, WGBH, dist. by PBS Home Video, shoppbs.org/education. 2010. DVD UPC 841887012379. $24.99.
This documentary shows that while mainstream economic theory is based on individuals making rational financial decisions, behavioral exams reveal that emotions often cloud judgment, leading to market bubbles and crashes.
Montier, James. The Little Book of Behavioral Investing: How Not To Be Your Own Worst Enemy. Wiley. 2010. 219p. illus. ISBN 9780470686027. $19.95.
An investment strategist examines investor behavioral biases—from overconfidence to loss-aversion—that constrain financial returns. He packs his sprightly text with numerous examples and questions to help readers discover their own biases.
Salsbury, Gregory. Retirementology: Rethinking the American Dream in a New Economy. FT: Pearson. 2010. 219p. illus. index. ISBN 9780137056538. pap. $19.99.
Dissecting the retirement mind-set of Americans in the wake of the 2008 crash, a financial executive explains that the way we invest depends on our outlook as much as on objective risk reward judgments. He guides readers in overcoming their preconceptions, fears, and unrealistic expectations. (LJ 5/1/10)
Zweig, Jason. Your Money and Your Brain: How the New Science of Neuroeconomics Can Help Make You Rich. S. & S. 2008. 352p. illus. index. ISBN 9780743276696. pap. $15.99.
Financial journalist Zweig uses numerous anecdotes and examples to survey how human emotions and instincts influence investors’ decision-making.
INVESTOR BE WARY
Fisher, Ken with Lara Hoffmans. How To Smell a Rat: The Five Signs of Financial Fraud. Wiley. 2009. 209p. bibliog. index. ISBN 9780470526538. $24.95; pap. 2010. ISBN 9780470631966. $16.95.
An investment manager warns readers to be wary when a manager wants asset custody, has returns that seem too good to be true, has an incomprehensible strategy, exudes an air of exclusivity, and the investor is relying upon others for due diligence.
The Madoff Affair. color. 60 min. Marcela Gaviria & Martin Smith, Frontline & RAINMedia, WGBH-Boston, dist. by PBS Home Video, shoppbs.org/education. 2009. DVD ISBN 9780793670734. $24.99. Closed-captioned.
This PBS investigative documentary uses news clips and on-screen interviews to examine how Bernie Madoff kept his massive investment fraud alive. (LJ 9/15/09)
STOCKS & BONDS
Carrel, Lawrence. Dividend Stocks for Dummies. Wiley. 2010. 340p. illus. index. ISBN 9780470466018. pap. $24.99.
As financial journalist Carrel explains, dividend-paying stocks hold many advantages, such as better share price stability, steady income, and a boost on returns.
Cohen, Marilyn & Chris Malburg. Bonds Now! Making Money in the New Fixed Income Landscape. Wiley. 2010. 195p. illus. index. ISBN 9780470547007. $29.95.
A bond manager and a finance writer dissect the 2008 bond market bloodbath and then show how savvy bond investors can, under today’s conditions, navigate ratings, risks, and opaque pricing, to assemble a diversified portfolio for secure ongoing income.
Jain, Prem C. Buffett Beyond Value: Why Warren Buffett Looks to Growth and Management When Investing. Wiley. 2010. 304p. illus. index. ISBN 9780470467152. $27.95.
From Buffett’s many years of investing, Jain, a professor of finance, draws thought-provoking lessons for average investors. Jain explains Buffett’s combination of value and growth strategies and his reliance on excellent company management to produce superior returns over long periods.
Mladjenovic, Paul. Stock Investing for Dummies. 3d ed. Wiley. 2009. 357p. illus. bibliog. index. ISBN 9780470401149. pap. $21.99.
A financial planner covers everything from what stocks are and why they yo-yo in price to working with brokers and choosing the right stock mix.
Siegel, Jeremy J. Stocks for the Long Run: The Definitive Guide to Financial Market Returns and Long-Term Investment Strategies. 4th ed. McGraw-Hill. 2008. 380p. illus. index. ISBN 9780071494700. $34.95.
Wharton professor Siegel’s authoritative work continues to be the best argument for the primacy of stocks in building wealth over long periods of time.
MUTAL FUNDS/ETFS
Bogle, John C. Common Sense on Mutual Funds. rev. 10th anniversary. ed. Wiley. 2010. 622p. illus. index. ISBN 9780470138137. $29.95.
Returning with updated figures and charts, the founder of Vanguard continues to argue that actively managed mutual funds underperform the market owing to their costs and constant trading and eloquently makes his case for using passive low-cost, low-turnover index funds.
Hevner, Leland B. The Perfect Portfolio: A Revolutionary Approach to Personal Investing. Wiley. 2009. 282p. illus. index. ISBN 9780470401743. $29.95.
The president of the National Association of Online Investors divides investing into nine asset groups and methodically explains how they can be combined through index funds to meet individual investing needs.
Masonson, Leslie N. Buy—Don’t Hold: Investing with ETFs Using Relative Strength To Increase Returns with Less Risk. FT: Pearson. 2010. 219p. illus. bibliog. index. ISBN 9780137045327. $26.99.
A financial consultant offers a twofold approach to lessen the impact of market declines, coupling low-cost exchange-traded fund investing with a set of market indicators to determine apt times to buy and sell.
Solin, Daniel R. The Smartest Investment Book You’ll Ever Read: The Simple, Stress-Free Way To Reach Your Investment Goals. Perigee: Putnam. 2006. 179p. illus. bibliog. index. ISBN 9780399532832. $19.95; pap. ISBN 9780399535994. $13.95.
Investment advisor Solin admits that most investors fail to beat market returns. He advocates a mix of low-cost broad-based stock and bond index funds to mirror the market averages, hold down costs, and reduce portfolio volatility.
Tyson, Eric. Mutual Funds for Dummies. 6th ed. Wiley. 2010. 384p. illus. index. ISBN 9780470623213. pap. $19.99.
In this practical guide to deciphering mutual funds, Tyson’s up-to-date explanations of rules, options, and how to contact funds are instructive for all investors.
OPTIONS/FUTURES/COMMODITIES
Garner, Carley. A Trader’s First Book on Commodities: An Introduction to the World’s Fastest Growing Market. FT: Pearson 2010. 244p. illus. index. ISBN 9780137015450. $34.99.
Commodity broker and analyst Garner explains the methods, vocabulary, benefits, and dangers of the volatile world of commodities investing.
Jabbour, George M. & Philip H. Budwick. The Option Trader Handbook: Strategies and Trade Adjustments. 2d ed. Wiley. 2010. 381p. illus. index. ISBN 9780470481615. $85.
This accessible handbook explains the use of stock options such as calls, puts, straddles, strangles, and spreads. Its key strengths are discussions of strategies for different scenarios and graphical representations of risk/reward accruing to various option combos.
Mladjenovic, Paul. Precious Metals Investing for Dummies. Wiley. 2008. 338p. illus. index. ISBN 9780470130872. pap. $24.99.
Although published two years ago, financial planner Mladjenovic’s analysis of the potential for precious metals as inflation and currency hedges remains spot on.
Thomsett, Michael C. Options Trading for the Conservative Investor: Increasing Profits Without Increasing Your Risk. FT: Pearson. 2010. 252p. illus. index. ISBN 9780137042005. $34.99.
Warning against speculation, Thomsett, author of several books on options, explains how conservative investors can use options to boost returns and cope with volatile and down markets.
ANALYSIS/RISK MITIGATION
Kahn, Michael N. Technical Analysis Plain and Simple: Charting the Markets in Your Language. 3d ed. FT: Pearson. 2010. 318p. illus. index. ISBN 9780137042012. $26.99.
While some investors think technical analysis is hocus-pocus, others believe that the patterns in the charts can predict the direction of stocks. Practicing technical analyst Kahn explains the nuances of the field in easily understood terms.
Krantz, Matt. Fundamental Analysis for Dummies. Wiley. 2010. 360p. illus. index. ISBN 9780470506455. pap. $24.99.
Fundamental analysis is the process of determining whether a company is a good investment by examining its condition and prospects. Financial writer Krantz explains terms, financial statements, and how to translate analysis into informed decisions.
Miccolis, Jerry A. & Dorianne R. Perrucci. Asset Allocation for Dummies. Wiley. 2009. 340p. illus. index. ISBN 9780470409633. pap. $24.99.
An experienced risk manager teams with a financial journalist to explain how varying the proportions of asset classes can mitigate portfolio risk and maximize potential gain.
RETIREMENT
Armstrong, Frank, III & Paul B. Brown. Save Your Retirement: What To Do If You Haven’t Saved Enough or If Your Investments Were Devastated by the Market Meltdown. FT: Pearson. 2009. 207p. illus. bibliog. index. ISBN 9780137029006. pap. $14.99.
Providing solace to investors for whom retirement and its costs are looming, these financial writers advise on how to make up for retirement savings by managing stock market risk, working longer, understanding Social Security, and making savings last.
Lucia, Raymond J. with Dale Fetherling. The Buckets of Money Retirement Solution: The Ultimate Guide to Income for Life. Wiley. 2010. 211p. illus. bibliog. index. ISBN 9780470581575. $24.95.
Financial advisor Lucia tackles the post-2008 dilemma of retirement investing. His solution is to allocate funds to different time horizons in what he calls buckets, using up safe short-term investments first, to allow the time needed for growth-oriented investments like stocks to recover.
Miller, Mark. The Hard Times Guide to Retirement Security: Practical Strategies for Money, Work, and Living. Bloomberg: Wiley. 2010. 223p. illus. bibliog. index. ISBN 9781576603628. pap. $16.95.
Financial columnist Miller examines the impact of the decline of stock and home prices on the retirement prospects of largely unprepared baby boomers. He offers no magic bullets and instead runs through a number of measures, e.g., adjusting expectations and maximizing Social Security.
Solin, Daniel R. The Smartest 401(k)* Book You’ll Ever Read: Maximize Your Retirement Savings...the Smart Way! (*Smartest 403(b) and 457(b) too!) Perigee: Putnam. 2008. 228p. bibliog. index. ISBN 9780399534522. $19.95; pap. 2010. ISBN 9780399536083. $13.95.
Solin expands on investment advice he gives below, demystifying the rules and disadvantages of individualized employee retirement accounts, annuities, and both traditional and Roth IRAs.
Solin, Daniel R. The Smartest Retirement Book You’ll Ever Read. Perigee: Putnam. 2009. 255p. bibliog. index. ISBN 9780399535208. $21.95; pap. 2010. ISBN 9780399536342. $13.95.
Solin explains how to manage investments during the retirement years, including portfolio composition, distributions, Social Security, supplemental sources of income, retirement costs, estate planning, and husbanding assets to match life expectancy.
WEB ADDENDUM
WHAT HAPPENED?
The Ascent of Money: A Financial History of the World. color. 4 hrs. Niall Ferguson, Chimerica Media Ltd. & WNET.org. dist. by PBS Home Video, 800-531-4727; www.shoppbs.org/education. 2009. DVD. Item No.: ASMO600. $29.99.
In this sumptuously filmed documentary based on the book of the same title, Harvard economic historian Ferguson offers both a general history of finance and a focused view of how financial innovation, a wash of foreign currency, low U.S. interest rates, and Americans’ penchant for home ownership, set the stage for the American housing bubble.
Kindleberger, Charles P. & Robert Z. Aliber. Manias, Panics, and Crashes: A History of Financial Crises. 5th ed. Wiley. 2005. 355p. index. ISBN 9780471467144. pap. $21.95.
Economics professor Kindleberger’s classic work provides a solid history of past financial crises and the ways in which they have been mitigated by governmental intervention. He explains the limits of intervention and why central banks talk about the “moral hazard” of bailouts.
Lewis, Michael. The Big Short: Inside the Doomsday Machine. Norton. 2010. 266p. ISBN 9780393072235. $27.95. pap. Feb. 2011. ISBN 9780393338829. $15.95.
Best-selling author Lewis adroitly describes how a handful of investment managers detected the growing mortgage-backed securities bubble and made fortunes betting against it during the 2008 crisis. (LJ 4/15/10)
Shiller, Robert J. Irrational Exuberance. 2d ed. Princeton Univ. 2005. 304p. illus. index. ISBN 9780691123356. $37.50. pap. ISBN 9780767923637. $16.
In the first edition of his study of U.S. investing psychology, Yale economics professor Shiller predicted the bursting of the dot.com bubble. In the second edition, he argued that the U.S. housing boom had entered into a speculative bubble phase, which subsequently itself collapsed.
WHERE DO WE GROW FROM HERE?
Kiyosaki, Robert T. Rich Dad’s Conspiracy of the Rich: The 8 New Rules of Money. Business Plus. 2009. 260p. illus. ISBN 9780446559805. pap. $12.99.
Kiyosaki, the best-selling author of Rich Dad, Poor Dad, rails against the banking system and poor investor education, as he argues that the best way to financial security is through an entrepreneurial use of debt to produce cash flow from business, real estate, paper assets, and commodities.
BASICS
Ramsey, Dave. The Total Money Makeover: A Proven Plan for Financial Fitness. 3d ed. Thomas Nelson. 2009. 259p. photogs. index. ISBN 9781595550781. $24.99.
Using humor, personal stories, third-party testimonials, fill-in worksheets, and some religion, radio show host and best-selling author Ramsey provides strong motivation to readers to dedicate themselves to eliminate debt, save money, and invest wisely for retirement and other goals.
GETTING HELP!
Glassman, Saly A. It’s about More Than the Money: Investment Wisdom for Building a Better Life. FT: Pearson. 2010. 215p. index. ISBN 9780137050321. pap. $19.99.
Financial adviser Glassman addresses the positive and negative relationships between advisors and their clients in making investment decisions and dealing with adversities.
Jaffe, Chuck. Getting Started in Finding a Financial Advisor. Wiley. 2010. 262p. index. ISBN 9780470538784. $19.95.
Financial journalist Jaffe walks readers through the process of finding competent professional help from financial planners, brokers, real estate and insurance agents, accountants, and lawyers. He explains what questions to ask, how to verify qualifications, services to expect, compensation, and mistakes to avoid.
MARKET DYNAMICS
Soros, George. The New Paradigm for Financial Markets: The Credit Crisis of 2008 and What It Means. PublicAffairs: Perseus. 2008. 162p. illus. ISBN 9781586486839. $22.95.
Legendary investor Soros sees in the mortgage-backed securities crisis support for his belief that markets can move to dangerous extremes through what amounts to self-fulfilling feedback loops in what he calls reflexivity, a theory he introduced in The Alchemy of Finance (LJXpress Reviews, 5/20/10)
INVESTOR PSYCHOLOGY
Chatzky, Jean. The Difference: How Anyone Can Prosper in Even the Toughest Times. Crown Business. 2009. 274p. illus. index. ISBN 9780307407139. $24.95 pap. 2010. ISBN 9780307407146. $14.
Drawing on survey results to discern what qualities mark those who accumulate wealth, Chatzky finds wealthier people to be savers and willing to take risks that yield superior long-term gains. She guides readers through exercises that will allow them to set and achieve financial goals.
INVESTOR BE WARY
Toroian, Cassandra. Don’t Buy the Bull: Dispelling Disastrous Investment Advice and Money-Myths in Our New Economy. Sterling & Ross, dist. by Publishers Group West. 2010. 128p. ISBN 9780982139264. $19.95.
Toroian, a financial analyst, punctures 23 financial truisms she terms myths, such as putting money in broad-based index funds because it is too hard to choose stocks. She counters that in today’s turbulent market it is better to look for stocks or sectors that will outperform the overall market. Her contrarian views will provoke thoughtful discussion.
STOCKS & BONDS
Dorsey, Pat. The Little Book That Builds Wealth: The Knockout Formula for Finding Great Investments. Wiley. 2008. 200p. illus. ISBN 9780470226513. $19.95.
The director of equity research for Morningstar explains how investors can find stocks of companies with economic moats that give them competitive advantages, pricing power, and ongoing profitability. He cites factors like high customer switching costs, advantages of scale, and network effects.
Gardner, David & Tom Gardner. The Motley Fool Million Dollar Portfolio: How to Build and Grow a Panic-Proof Investment Portfolio. HarperBusiness: HarperCollins. 2009. 260p. illus. bibliog. index. ISBN 9780061567544. $26.99.
The cofounders of The Motley Fool website reiterate their philosophy of investing in stocks for long-term gains that beat other asset classes. They provide an informative introduction to choosing investments in various stock categories such as income, blue-chip, growth, value, and international.
MUTUAL FUNDS/ETFs
Benz, Christine. Morningstar Guide to Mutual Funds: Five-Star Strategies for Success. 2d ed. Wiley. 2005. 288p. illus. bibliog. index. ISBN 9780471718321. $24.95. pap. 2007. ISBN 9780470137536. $16.95.
This guide by Morningstar director of mutual fund analysis Benz shows individual investors how to evaluate mutual funds and put together a diversified portfolio. She emphasizes ferreting out often overlooked factors such as risk and fund costs and includes a chapter on dealing with volatile markets.
ANALYSIS RISK MITIGATION
Dorsey, Pat. The Five Rules for Successful Stock Investing: Morningstar’s Guide to Building Wealth and Winning in the Market. Wiley. 2004. 364p. illus. index. ISBN 9780471686170. pap. $16.95.
In this thorough yet introductory guide to stock evaluation and selection, Dorsey, a Morningstar director, builds concept upon concept in helping readers understand how to analyze and compare corporate balance sheets to find investable value.
Graham, Benjamin & Others. The Intelligent Investor: A Book of Practical Counsel. rev. ed. HarperBusiness: HarperCollins. 2003. 623p. illus. index. pap. ISBN 9780060555665. $21.99.
This is the classic book on value investing. No less than Warren Buffett learned at the feet of Graham. Though many of the examples are dated, Graham’s careful value approach, stemming from the debacle of the Great Depression, has renewed relevancy for investing in today’s volatile markets.
BIOGRAPHY Cramer, James J. Confessions of a Street Addict. S. & S. 2002. 339p. index. ISBN 9780743224871. $26. pap. 2003. ISBN 9780743224888. $15.
Popular CNBC television host Cramer bares all in this brilliantly written and entertaining memoir of his lifelong love affair with stock investing. From living in his car to managing and walking away from a successful hedge fund, his story of constantly teetering on the edge is compelling. (LJ 5/1/02)
Lefèvre, Edwin. Reminiscences of a Stock Operator. Wiley. 2006. 273p. ISBN 9780471770886. pap. $21.95.
This 1923 classic is a fictionalized first-person account of a stock and commodity speculator based on the real-life exploits of Jesse Livermore. Lefèvre’s speculator reminisces on his investment prowess in the first decades of the 20th century where, by studying market prices, he was able with the liberal margins requirements of the day to win and lose several fortunes.
Schroeder, Alice. The Snowball: Warren Buffett and the Business of Life. Bantam. 2008. 960p. photogs. index. ISBN 9780553805093. $35. pap. 2009. ISBN 9780553384611. $20.
The title symbolizes Buffett’s value-oriented investment style in which investments compounding over time grow by their own momentum like a snowball rolling downhill. He advises, “Be greedy when others are fearful, and fearful when others are greedy, but don’t think you can outsmart the market.” Buffett cooperated with Schroeder, a former Wall Street analyst. (LJ 10/15/08)
Slater, Robert. Soros: The World’s Most Influential Investor. McGraw-Hill. 2009. 335p. index. ISBN 9780071608442. $27.95.
George Soros became world renowned for his successful 1992 multibillion-dollar bet against the British pound. Business writer Slater casts light on Soros’s personal life and his trading ability to recognize and aggressively take advantage of economic trends and market excesses. (LJ 1/15/09)
