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Smarter Than the Street: Invest Money and Make Money in Any Market by Gary Kaminsky
Gary Kaminisky is a co-host for CNBC's The Strategy Session and he recently wrote a book revealing the wealth-building secrets of wall street insiders. I was excited to read this book because I enjoy reading about different strategies of that investors have up their sleeves.
This book was a very easy read, he writes in a very no-nonsense way with simple terminology that you can understand (I think that's the key to any personal finance book that talk about investing in the stock market). He talks about how the next decade is going to be a zero growth decade, and why the “buy and hold strategy” won't work in our day and age.
He explains why buying mutual funds aren't a good idea, and why investment analysts really don't have your best interests at hand. He basically says that fund managers have their hands tied most of the time, and that they aren't out there to make a ton of money, they are only out there to beat the S&P500, and are satisfied even if they beat it by a minute amount.
Gary talks about change and that change can be good or bad, and how to see whether the change is good or bad in a stock (by keeping updated on news, changes with corporate structure etc.). He looks about two companies and how they dealt with change over the many decades they have existed, including GE and Disney.
Gary shares with the reader how many stocks they should own, and that it doesn't matter if you only have a $10,000 portfolio. He talks about how discipline is most important with investing, and that you shouldn't be afraid to sell your losers (in fact, he encourages it). He says that we need to avoid the herd mentality and do the opposite of what everyone else is doing (I definitely agree with this). He also shares with the reader on how to hedge against a bad market (by buying ultra short ETFs) and says that buying indexes is basically for losers (basically says that buying ETFs= no growth for many years).
I enjoyed reading the book and reading about the insider secrets of wall street (something that One Up on Wall Street's Peter Lynch mentions) because it was easy to read, but I found that the information in the book wasn't completely 100% concrete. He talks about shorting stocks when the markets aren't doing well. I did like how he enunciates that your stock broker or financial advisor might not have your best interests at stake. He mentions Suncor many times in the book as being one of the best stocks he has ever owned, and mentions a few other key stocks. He basically says to check financial websites daily for news and information and to do your own diligence when selecting stocks. All in all, I find this book useful for someone who hasn't read their fair share of investing books.
Readers, have you read this book? What did you think of it?
Smarter Than the Street Book Giveaway:
I will give away my copy of Smarter Than the Street to one lucky youngandthrifty.ca reader! North American entries only, please.
To enter this contest, all you have to do is subscribe to my blog and comment below to let me know you did so. That way, I can contact you via email if you are the winner. The contest closes February 4, 2011 at midnight, PST.
The winner will be selected through Random.org and will be announced on Feburary 11, 2011.
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