This is the author Nicolas Darvas and William O’Neal both turned to when learning how to trade stocks as they both made millions. Since these men are my mentors through their writing and I admire both of them I had to read this book. This book is not as well known as Loeb’s other book “The Battle for investment survival” but it is still a must read to get into the head of this legend. I was not disappointed after years of reading and trading this book took me to a new level and improved my style. If you only take away a few principles from this book it will pay for itself many times over, if you study it and use it with dedication you will eventually become a millionaire through smart investing. Gerald Loeb was a top broker for E. F. Hutton and also made a fortune in his own account. He opened my eyes to very important concepts and made them clear. For one, stocks are for selling, people buy them so they can later sell them for a profit. So what we are looking for is simply a stock that others will buy in hopes of a future profit. A stock’s prices do not top out at the height of the underlying businesses fundamentals, they top out when expectations for the the future is the highest. We should not look for a $1 profit on a thousand shares of a stock it would be better to look for a $10 profit on 100 shares. We should not even risk our capital on a stock unless it has the potential to increase by at least 50% in a reasonable time maybe 12 months. Do not over diversify for portfolio he agrees with Warren Buffett that we should but all our eggs in one basket and watch that basket carefully. It is actually safer to invest with companies you know inside and out. Buy a stock by starting with a small initial buy, if the stock goes up by more, but only buy after your first purchase makes you money, if it does not sell because you were wrong. This is a small taste of the wisdom this man has given us with his 40 years of experience. I highly recommend reading Loeb’s other book for his full picture of investing success.
Priya says
This is the author Nicolas Darvas and William O’Neal both turned to when learning how to trade stocks as they both made millions. Since these men are my mentors through their writing and I admire both of them I had to read this book. This book is not as well known as Loeb’s other book “The Battle for investment survival” but it is still a must read to get into the head of this legend. I was not disappointed after years of reading and trading this book took me to a new level and improved my style. If you only take away a few principles from this book it will pay for itself many times over, if you study it and use it with dedication you will eventually become a millionaire through smart investing. Gerald Loeb was a top broker for E. F. Hutton and also made a fortune in his own account. He opened my eyes to very important concepts and made them clear. For one, stocks are for selling, people buy them so they can later sell them for a profit. So what we are looking for is simply a stock that others will buy in hopes of a future profit. A stock’s prices do not top out at the height of the underlying businesses fundamentals, they top out when expectations for the the future is the highest. We should not look for a $1 profit on a thousand shares of a stock it would be better to look for a $10 profit on 100 shares. We should not even risk our capital on a stock unless it has the potential to increase by at least 50% in a reasonable time maybe 12 months. Do not over diversify for portfolio he agrees with Warren Buffett that we should but all our eggs in one basket and watch that basket carefully. It is actually safer to invest with companies you know inside and out. Buy a stock by starting with a small initial buy, if the stock goes up by more, but only buy after your first purchase makes you money, if it does not sell because you were wrong. This is a small taste of the wisdom this man has given us with his 40 years of experience. I highly recommend reading Loeb’s other book for his full picture of investing success.