Includes index Includes bibliographical references (pages 235-241) and index
Contents:
A typical situation Information everywhere So many options Is there a simple strategy that makes sense and works? This book's goal Impeccable common sense Comfort level The mind extrapolates Important lessons from the field of Behavioral Finance The psychology of loss, the psychology of gain Sell too quick? Self control Narcissistic distortions Open your inner eyes Awareness of the inner life Investors, listen up! The First Hurdle: Say Goodbye to Bonds and Hello to Bouncing Principal The environment for investors A bill that never arrives in the mail Maintaining purchasing power Graphical view of inflation and the declines of the dollar A loaf of bread became a slice of bread "Safe" investments do not outperform inflation Bonds haven't really beaten inflation Bonds, bad Learning to love fluctuations The risk/confidence equation Banks in the 1990s Easy to hold, easy to buy declines The Eighth Wonder: A First Look at Compounding Harnessing the power of time and growth Compounding is the money that money makes Simple vs. compound gains Time is all you need Some magical examples The eighth wonder Average annual returns Time, patience, and the right kind of stock A company's reliable growth shared with owners The Single Best Investment: Creating Your Own Private Compounding Machine The "parts" of a compounding machine The operator Dividend growth is the hidden key Dividend growth drives the compounding principle Dividends are the truth Management's signaling device High returns from dividends alone Dividend growth boosts a stock's price Reinvestment is behind the bulk of long-term wealth creation An investor's growth connects to a company's growth through rising dividends The Single Best Investment Strategy Applied An almost impossibly simple formula High financial strength Low debt High interest coverage Moderate reliable earnings growth Credit experts do the rating work for us Dividend history Quality is a management issue Tough times, acquisitions Franchise or niche Real products for real people High current yield A better base level quickens the end point for most mortals Some simple ways to project future dividend growth Emphasizing reliability of mature companies Cyclicals are problematic Obvious cases are good enough Traditional Valuation Tools The quest for cheapness is filled with tricks and traps Good relative valuations can give you an edge Price/sales ratio Revenues are the raw material of profit Price/earnings ratio, a slippery concept Remember to adjust ratios to the relevant industry group Book value Cash flow and cash growth A takeover? Insiders activity Does Undervaluation Exist? The Story of the Stock How can so many stocks be "undervalued?" Undervaluation and arrogance A story proposal The story of the stock A stable, proven marketplace A growth kicker Solid base of reliable cash flow Consolidation Stock buy-backs A tailwind Can there be bargains? Moderate reliable growth as a story Charts Can Help You Academics call them laughable The alpha mystery Relative strength studies Technical analysis helps reveal the subjective attitude of investors The Miller/Howard quantitative technical study The key item is relative strength Six months of relative weakness When all is in concert Beware the parabolic The selling climax Look for the turn Technicals for selling A Gallery of Single Best Investment Stocks An array of various kinds of qualifying stocks, with text pages from Value Line and explanations indicating how to identify and analyze them For illustration only, not current recommendations Caveat emptor How to Hold and When to Sell: Attitude is Everything Investing is about character Too ma
