Wednesday, January 20, 2010

Stocks for the long run

When we think about stock market, immediate images that comes to our mind are ups and down of daily graph, quick money, double in short etc ... also the sad face after the bear attack. Herd mindset rules while chasing the brands and over priced items. The events are perceived more as a random act and hence reducing the trading to that of gambling.

Rare are those try to deduct some sense out of the rush. Observing the money flow and the trend. Those are the ones looking into the fundamentals and the technicals, choosing a method for their own style. They do invest wisely and be peaceful.

The book "Stocks for the long run" is for a person looking for ways to have a smooth sail through the market. The language is very simple for anyone to understand the concepts. Lots of sample data, historical facts, well researched ideas are presented throughout. Author Jeremy J Siegel puts forward many case studies of rise and fall of companies, market crashes, predictions etc.

Ever wondered how the stock exchanges list the companies and categorizes them? This is explained in a nice manner. Also there are methods for filtering out good companies. Those methods are explained along with comparison. The book touches upon other investing tools and checks the historical returns derived from them. Thou major discussion of the book happens at the American financial backdrop, there is a chapter devoted for Indian and Chinese markets and how we will be influencing the world economy.

Would recommend this book to anyone interested in making money through trading.
Btw, by 'long run', the author hints 15 to 20 years :-)

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