Stop Losing Money Today
by Georges Yared
Published by C&G Group, LLC
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Reviewed by Muhammed Hassanali
Subtitled: The Art and Science of Investing
Two of the most prevalent approaches to investing are technical analysis and fundamental analysis. Yared primarily uses fundamentals to determine the value of a stock (target price). He instructs readers to supplement fundamentals with an assessment of managerial talent, industry trends, and the company's future direction. With such analysis, the issue is interpreting the data--which Yared entrusts to "gut feel."
The introduction starts with a chronological account of Yared's work experience (which the reader may skip), followed by a rational for writing this book. The first four chapters describe the temperament required for long-term investing. What makes the chapters worthwhile reading are the stories drawn from personal experience. These stories illustrate the perils of not having the right temperament, and general guidelines for evaluating how well your broker understands and represents your investment preferences.
The next four chapters delve into evaluating the companies and analyzing the performance of their stocks. From a "how-to" perspective, these four chapters are the crown jewels of the book. However, without the right temperament, these crown jewels are of little value. Chapter 9 discusses some popular investment avenues (options, trading on margin, day trading) and their pitfalls. Chapter 10 deals with types of return (growth and value shares) and mutual funds. An epilogue and glossary of terms follow the chapters.
Yared does not address variability of returns on the overall performance of the portfolio. This consideration may lead him to alter 100% investment in growth funds. While the stories make complex analysis more approachable, sometimes one is so caught up in the stories that the main point is lost. A summary of major points at the end of each chapter would help. Services of an editor would curtail minor usage errors throughout the book.
Yared's essential approach to investing (setting a stock's target price as a decision-making marker) is sound. Professionals use this approach and academicians preach it. While there are several books on investing, case studies drawn from the author's personal experiences making this one unique and memorable. The writing style is fluid, contributing to an educational and
pleasurable reading experience.
Armchair Interview says: This book will help the reader become a smarter and more savvy investor.