Chapter 7 of A Random Walk Down Wall Street asks a question that should make every investor uncomfortable. All those analysts on Wall Street, the ones in suits flying first class and talking earnings forecasts all day, can they actually predict the future? Malkiel digs into the evidence. And it’s not pretty.
In the second half of Chapter 4 of Stock Market Cash Flow (ISBN: 978-1-937832-48-3), Andy Tanner zooms in from analyzing entire countries to analyzing individual companies. Same fundamental analysis principles, just a different scale.
Chapter 4 of Stock Market Cash Flow (ISBN: 978-1-937832-48-3) by Andy Tanner gets into the first pillar: fundamental analysis. And it starts with a really basic but important idea.
Chapter 5 kicks off Part Two of the book: “How the Pros Play the Biggest Game in Town.” On a typical trading day, shares worth hundreds of billions change hands. Fresh Harvard Business School grads pull $200,000 salaries in good years. The top money managers handle over a trillion dollars in hedge fund assets.
In Chapter 3 of Stock Market Cash Flow (ISBN: 978-1-937832-48-3), Andy Tanner finally lays out the big framework. The four pillars of investing. Everything you’ll ever learn about stock investing fits into one of these four buckets. And once you see them, you can’t unsee them.
Chapter 16 is basically the Warren Buffett chapter. Not that Harris mentions Buffett by name, but the whole idea of value trading is: figure out what something is really worth, wait for the market to misprice it, buy low, sell high. That is the entire philosophy in one sentence. The hard part is everything else.
Volatility is one of those words that everyone uses but most people think about too simply. Prices went up and down a lot today? Volatile. VIX is high? Volatile. Your crypto portfolio lost 40%? Very volatile.
Book: Trading and Exchanges: Market Microstructure for Practitioners Author: Larry Harris Publisher: Oxford University Press, 2003 ISBN: 0-19-514470-8
Book: Beating the Street by Peter Lynch with John Rothchild | ISBN: 978-0-671-75915-5
This chapter is where the Magellan retrospective ends and the practical stockpicking begins. Lynch is about to walk us through the 21 stocks he recommended at the 1992 Barron’s Roundtable. But first, he explains his method. And it starts with a warning about both extremes.