Archive for November, 2007

Investing Like a Shark

November 1, 2007

Invest Like a Shark: How a Deaf Guy with No Job and Limited Capital Made a Fortune Investing in the Stock Market is another in a long line of stock picking books to get onto my bookshelf.

To my surprise, I enjoyed this. Mr DePorre gives a good overview of choosing some relatively good value stocks (using effective tools like the PEG ratio) and then using technical analysis, including a quick introduction to charting, to choosing the right time to buy and sell a stock. He incorporates this into an overall philosophy of investment he dubs ‘Shark Investing’.

I found the first chapters on philosophical approach a bit fluffy, and I enjoyed the practical advice a lot more. It’s interesting that each investment book I’ve read, be it a value-investing stock-picking book (e.g. from the Motley Fool) or a asset allocation tome, or this book, explain how Wall Street has it in for the common investor and just how badly most ‘little guy’s fare. The stories and explanations are roughly the same, but the prescription is different each time. I come from a more fundamental buy-and-hold Motley Fool school of investing, and the author does his best to differentiate himself from B&H by giving a list of reasons why the approach is sure to fail — even though Wall Street wants you to do it that way — and how the average little guy can defend himself against this by … investing like a shark. Similarly, Motley Fool writers often explain how Wall Street wants you to invest with technical analysis but how the real investor can profit with fundamental analysis instead….

Anyhow, a good book for those who are interested in mixing their fundamental analysis with technical analysis.

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