to prove a point, and make a couple of presentations for my shareclub, went to the library and took out some books.
your library has books (and some in digital format) on investing, many are old, but some our recent and very good. also these are cheap, less than $20 and worth picking up. so plenty of sources of information internet (digital, and books), great time to be an investor.
here are the reviews.
Two books worth Reading:
Grande Expectations by Karen Blumenthal, pages 309, 2007,
?Chock Full of object lessons for anyone keen on growth-stock investing.? Barrons
?Introduces novices to the world of the pros and makes sense of it.? USA Today
Basically this book covers Starbucks for one full year during 2005, everything from how the annual meeting goes, to the press and how they are handled. Research coverage, the business, and how it works, and how the company got off track, and in the future ran into trouble.
Also near the end of the book they have a section on accounting and how you can easily tweak the numbers to add a cent or two to earnings. Missing or beating earnings by a cent or two can be very important for most companies. A good read and you will learn plenty about most items concerning a stock.
A book worth reading to learn about a growth stock, does not matter if you do not care about starbucks.
Book Two
The Big Secret for the Small Investor by Joel GreenBlatt, this is from the Little Book series, many are worth reading, will reviews them as I read most of the ones offered.
He has written the Little Book that beats the market, which plan on reading, very good reviews. This book is more for the passive investor, but brings up some very good points.
1. most investors fail to beat the average in the index. Even when an investor is with a money manager that makes money, they ussually leave during and off year and chase performance.
2. most active managers fail to keep pace with the index.
3. Market weight indexes can sometimes have and be dominated by large market cap stocks that might not be of good value.
4. Fundamentally indexes of equal weight indexes often beat the index they follow by 1-2% over time on an annually basis.
5. Value Index ETFs are even better outperforming the index they track by 2% annually on average.
Well written book easy to understand and good for passive investors or for people who just want the best to set up a portfolio that will beat the market over time without to much effort.
Much more selection for US investors than Cdn. Investors, have not found one value weighted index etf that trades on a regular basis, there are fundamental indexes.
Below is a chart showing returns of US value weighted index, from the book, worth buying. Will have a review Book that beats the market, shortly.
Year Value weighted index % Russel 1000% SP 500%
1990 -8.8% -4.2 -3.1
1991 48.7% 33.0 30.5
1992 19.2% 8.9 7.6
1993 16.3% 10.2 10.1
1994 4.2% 0.4 1.3
1995 38.8% 37.8 37.6
1996 23.4% 22.4 23.0
1997 33.0% 32.9 33.4
1998 9.1% 27.0 28.6
1999 8.6% 20.9 21.0
2000 18.7% -7.8 -9.1
2001 15.3% -12.4 -11.9
2002 -6.7% -21.7 -22.1
2003 40.7% 29.9 28.7
2004 21.5% 11.4 10.9
2005 10.3 6.3 4.9
2006 17.5 15.5 15.8
2007 2.7 5.8 5.5
2008 -35.3 -37.6 -37.0
2009 48.5 28.4 26.5
2010 (six months) -2.0 -6.4 -6.7
Compounded return 13.9% 7.9% 7.6%
Equally weighted etf ie. RSP tracks SP500 and should outperform the sp by 1-2%.
Fundamentally weighted index should do better also than the indexes and also outperform by 1-2%. ie. PRF
Value Index ETF should outperform the index by 2% over time, here is some US etfs
: IWD 1000 value Russel, IWN Russel 2000 value, IWS midcap value, IJS small cap value, VTV vanguard value, V?OE mid cap value, VBR small cap etf, EFV EAFE index value.
In Canada here is some from from Claymore CRQ Claymore Cdn. Fundamental index etf 1year 14.29% 17.47% index 3yr 8.54% 3.93% 5yr. 7.53% 6.06% mer .72%
total divs, cash flow, sales, book value, 5yrs.
Other claymore etf fundamental CIE/international, CLU.c US fundamental etf.
There are few value eft in Canada, TAV from TD tracks the Toronto index, .55mer. The one problem it is not liquid, many days does not trade, so hopefully since there are about a half a dozen new etfs per month this void can be filled.
your library has books (and some in digital format) on investing, many are old, but some our recent and very good. also these are cheap, less than $20 and worth picking up. so plenty of sources of information internet (digital, and books), great time to be an investor.
here are the reviews.
Two books worth Reading:
Grande Expectations by Karen Blumenthal, pages 309, 2007,
?Chock Full of object lessons for anyone keen on growth-stock investing.? Barrons
?Introduces novices to the world of the pros and makes sense of it.? USA Today
Basically this book covers Starbucks for one full year during 2005, everything from how the annual meeting goes, to the press and how they are handled. Research coverage, the business, and how it works, and how the company got off track, and in the future ran into trouble.
Also near the end of the book they have a section on accounting and how you can easily tweak the numbers to add a cent or two to earnings. Missing or beating earnings by a cent or two can be very important for most companies. A good read and you will learn plenty about most items concerning a stock.
A book worth reading to learn about a growth stock, does not matter if you do not care about starbucks.
Book Two
The Big Secret for the Small Investor by Joel GreenBlatt, this is from the Little Book series, many are worth reading, will reviews them as I read most of the ones offered.
He has written the Little Book that beats the market, which plan on reading, very good reviews. This book is more for the passive investor, but brings up some very good points.
1. most investors fail to beat the average in the index. Even when an investor is with a money manager that makes money, they ussually leave during and off year and chase performance.
2. most active managers fail to keep pace with the index.
3. Market weight indexes can sometimes have and be dominated by large market cap stocks that might not be of good value.
4. Fundamentally indexes of equal weight indexes often beat the index they follow by 1-2% over time on an annually basis.
5. Value Index ETFs are even better outperforming the index they track by 2% annually on average.
Well written book easy to understand and good for passive investors or for people who just want the best to set up a portfolio that will beat the market over time without to much effort.
Much more selection for US investors than Cdn. Investors, have not found one value weighted index etf that trades on a regular basis, there are fundamental indexes.
Below is a chart showing returns of US value weighted index, from the book, worth buying. Will have a review Book that beats the market, shortly.
Year Value weighted index % Russel 1000% SP 500%
1990 -8.8% -4.2 -3.1
1991 48.7% 33.0 30.5
1992 19.2% 8.9 7.6
1993 16.3% 10.2 10.1
1994 4.2% 0.4 1.3
1995 38.8% 37.8 37.6
1996 23.4% 22.4 23.0
1997 33.0% 32.9 33.4
1998 9.1% 27.0 28.6
1999 8.6% 20.9 21.0
2000 18.7% -7.8 -9.1
2001 15.3% -12.4 -11.9
2002 -6.7% -21.7 -22.1
2003 40.7% 29.9 28.7
2004 21.5% 11.4 10.9
2005 10.3 6.3 4.9
2006 17.5 15.5 15.8
2007 2.7 5.8 5.5
2008 -35.3 -37.6 -37.0
2009 48.5 28.4 26.5
2010 (six months) -2.0 -6.4 -6.7
Compounded return 13.9% 7.9% 7.6%
Equally weighted etf ie. RSP tracks SP500 and should outperform the sp by 1-2%.
Fundamentally weighted index should do better also than the indexes and also outperform by 1-2%. ie. PRF
Value Index ETF should outperform the index by 2% over time, here is some US etfs
: IWD 1000 value Russel, IWN Russel 2000 value, IWS midcap value, IJS small cap value, VTV vanguard value, V?OE mid cap value, VBR small cap etf, EFV EAFE index value.
In Canada here is some from from Claymore CRQ Claymore Cdn. Fundamental index etf 1year 14.29% 17.47% index 3yr 8.54% 3.93% 5yr. 7.53% 6.06% mer .72%
total divs, cash flow, sales, book value, 5yrs.
Other claymore etf fundamental CIE/international, CLU.c US fundamental etf.
There are few value eft in Canada, TAV from TD tracks the Toronto index, .55mer. The one problem it is not liquid, many days does not trade, so hopefully since there are about a half a dozen new etfs per month this void can be filled.
