I recommend Lowell Miller's "Single Best Investment" and David Dreman's "Contrarian Investment Strategies: The Next Generation."

I strongly recommend that you insist on high quality "value" stocks that pay good dividends.

Have fun.

John Walter Russell 

Hello, I answered a similar question a while back, here:

http://socialize.morningstar.com/NewSocialize/forums/post/2479929.aspx

Warning, very long post.  Worth a read, also look at the whole thread.

Some of my favorite authors are David Dreman, Peter Lynch, Peter Bernstein, Burton Malkiel, Andrew Tobias, and Morningstar's own Pat Dorsey. Some of these are "stock guys", while others talk mostly about general investing topics. Also look for interviews that Warren Buffett and Charlie Munger have given. They don't write books, but you should be able to find plenty of commentary on the web from these two. You can read Buffett's annual letters to shareholders on the Berkshire Hathaway website.

There are dozens of ways to go about investing in stocks, and as many motivations. You need to find an approach that you believe in, so read as much as you can stomach. Then watch the markets, or invest with relatively small amounts for a while.

Regards,

Duane

While it is true that investment books are biased, that is not necessarily a bad thing.  The author beleives in whatever he is "selling" and should be expected to be passionate about it.  The important thing is that you realize this going forward.  So just make sure you dont "fall for it" and think you have found the holy grail after reading one book. 

Read literature of different view points and form your own opinions of what YOU beleive in.  There are many successful ways to invest, and it really is up to each individual to find the way for them.

So dont rush into anything (except learning!).  Give yourself a good time frame to just learn and absorb and eventually it will come togethor for you.  Be prepared to be totally overwhemed at times, it will pass.

Please, take your time with this.  You need to understand exactly what your doing, and not just because someone else said so.  You will find these boards very helpful as you cant get this kind of dialouge from a book. 

Good Luck

Brian

Hmm, I meant this post actually: 

http://socialize.morningstar.com/NewSocialize/forums/post/2479927.aspx

I'm very biased against owning stocks as an individual investor, here is why:

the US market is 70%+ owned by fund companies, with a competitive advantage, automated buying, selling, research staffs.

You lose more money by not being in the market on the up days than you lose on the down days.  If you miss the initial fall and the initial rise, you have just taken a loss that is difficult to overcome.

I'd only buy stocks if there is a way to get an advantage, such as employee 15% discount and no holding period.

A large number of funds have 3 yr averages greater than 20% avarage.  I'll settle for that.

70% of the funds are less than the index for the funds every yr.  If the big boys can't pick them with their staff, how can a single person beat them.  They study the market, over 500 hrs per week.  I can only spend 10 hrs a week.

Admitting I can't beat the odds, I'll spend my time and effort identifying the best funds and lose my 1.5% as the fund fee, and still get an annual return greater then 25%.

best of luck

IMO and what I give to my Family?

1st- Pay off your Home in 15 yrs and Don't Use up the Equity for other than real Emergencies and after you have exhausted everything else.

2. After it's 75% paid for? Upgrade it to larger and more expensive Home (It's called Committment) and it will keep the Spouse from getting access tousing any other money for 'Things"...and plan to Downsize when you reitre, don't let the Spouse think your going to stay in it after retiring..and add the Difference ( Tax Free left over Profits) to your Retirement savings..( I boosted mine by Double when did this when I retired 5 yrs ago )

3. Max outyour #401k and Until you have proven to yourself you can beat them? Invest only in Balanced Funds..( FPACX,OAKBX,PRWCX )  equally and don't try to play the guessing game of allowcating More in one or the other..( let alone in Index Funds ) and if you Want or need to make more than 10-12% apy? You don't go investing in higher risk Funds, you just have to make and save more..and live on less..

4. Stocks? I just have bought from the Top 5 my funds own and follow their lead.. they're the pro's and know a hell-of-alot more than I and most others do..

5. Books:? Sure, but most of them talk about what worked in the Past and the markets are Always changing.. Even in the past few yrs with alot more having PC's and the Internet has changed thw whole basic's of the market..  ie: what's worked in the past, won't necessarily work in the future..

Of course, I've only ave less than 12% apy in my retirement account for the past 10 yrs and 'only' 19% in my all equity port for the past 10 yrs.. So what do I know.. all I Can share with you is how to do that and nothing more..

and there's no guarantee it will do as well for you in the next 10 yrs..

It's a Crap Shoot at best..

Try you must but " The Odds are against you"... if you attempt to do otherwise..

jr99:

Kerryvan, thanks that is very well-stated and exactly the type of feedback I was looking for.  Appreciate the help. 

I am confused, are you the OP?

Re to kerryvan..posts

Well, maybe not guy..> and I maybe wrong , but it hasn't been the case with my $..

>"You lose more money by not being in the market on the up days than you lose on the down days.  If you miss the initial fall and the initial rise, you have just taken a loss that is difficult to overcome.  eg; per $100k: Market drops -2% = - $2,000, now your down to $98k. Goes back up + 2% = $1,960  your still down.

Yrs 2000-02' via S&P500 Index per $1,000?

by end of 02'? Down to $625 ( -$375 = - 37.5% )

How long did it take to get even? The following 4 yrs! and the S&P totaled up  60% in total gains..over those next 4 yrs..(+15% ave)

And didn't low life BONDS Beat The S&P for the past 8 & 10 yrs now? let alone the likes of LSBRX....( +10% & 9% apy's)

> " If the big boys can't pick them with their staff, how can a single person beat them. "

Re; Simple > Index Mgrs have one hand tied behind their back..they have to stick to certain % allocations, asset classes and caps  in the Indexes of the markets while Active Fund Mgrs. don't.. Eg; CGMFX, CGMRX, FAIRX, FLVCX just to name a few..

As for using 3 yr apy's? I guess so, but I use 8 yr apy's.. and getting an ave of 22, 27,32,& 35% apy's on my funds  is better me thinks for 8 yrs than a short term 3 or 5 for that matter. So, how did those +25% apy Funds do in the last Bear market Yrs?

 But, if your a Shorter term player.. 25% is a Good Thing..too..

So, its the same old story...IAD..(ItAllDepends)

Hi,

As of books, all of them are biased to some extent, so the more you read the more objective understanding you will get. What I did for myself in this regard is watch other great investors invest, like Warren Buffet, Peter Lynch, George Soros to name a few.

Also, while investing in stocks, you should learn as much of a company as possible. Yahoo! Finance is a great place to find info on any US-traded ticker. Oh, and educational websites like investopedia.com or fool.com are also a great place to start with.

Good luck! 

jen