Preface - Explanation - Contents
This is a serialized version of an internet book entitled:
“The Brink’s Truck Burst Open On Wall Street! A Holistic Approach to Finding The Easy Money In Common Stocks”
This book will be serialized over a several month period. It will interest people who want to know whether the price of a stock is fair, or priced too high. It will aid you in outperforming the general stock market, by helping you understand what the value is of the company that underlies its stock, and by then relating that to its stock price. However, while many of these types of books are difficult to understand, this one is written in terms that most lay people should be able to understand, rather than using obscure language and difficult to understand terminology.
Insofar as the people go, this is a work of fiction. All names in this publication are fictitious and any resemblance to any person living or dead is coincidental. Copyright 1998 and 2004 by Jay Walker. All rights reserved.
Note that this book is available in its entirety via a pdf file. A comprehensive Excel spreadsheet, beta version, is also available, which performs many of the tedious, but necessary, calculations required to analyze a company and its stock price. This spreadsheet is designed to accompany the book.
The cost is $8 for the book, and $12 for the spreadsheet (USD). Please email me at remarkablesuccess@hotmail.com to order yours.
“It is hard to say the difference between art and craft,
except that the best of anything is art.”
- Author Unknown
I would like to thank the following ‘masters of art’
without whom this book would not be possible:
– Johann Gutenberg (Printing Press)
– Tim Berners-Lee (World Wide Web)
– Warren Buffett (Investing)
Contents
Preface 6
Part I: Why Invest in Common Stocks?
Chapter
One A Walk To Wealth 7
Two The Miracle of Time 11
Part II: Controlling Your Emotions
Three The Evils of Taxation 13
Four Cal from Canada & The Wizard of Oz 17
Five The Emotional Toolbox 22
Six Fear and Courage 25
Part III: Some Common Misconceptions
Seven Loading Up 30
Eight Diversifying or Not 33
Part IV: So You Want To Invest? What To Look For In A Company
Nine Favorable Business Characteristics 38
Ten Concentration and Focus 42
Eleven That Crazy Inflation 44
Twelve Branding 47
Thirteen Industry Dominant or Strong 50
Fourteen Truth, Communication and Debt 53
Fifteen Capital Spending and Inflation 58
Part V: How Companies Return Money To Shareholders
Sixteen The Big Payoff: Shareholders get Money Back 63
Seventeen Keeping Some Shareholders’ Money to Create Even More 68
Part VI: Critical Ratios To Consider
Eighteen The Easiest Ratio to Success: Return on Equity 71
Interlude What’s Up Next 75
Nineteen The Skinny on ROE, Profit Margins and Capital Spending 80
Twenty More Capital Returns 88
Part VII: How To Value A Stock
Twenty One Reliability of Earnings 91
Twenty Two Valuing a Company 97
Twenty Three What is a ‘Cash Flow’? 103
Twenty Four Projecting a Future Cash Flow 112
Twenty Five What is a Discount Rate 117
Twenty Six Choosing an Appropriate Discount Rate 121
Twenty Seven Pulling it all Together 127
Twenty Eight Reviewing the Various Valuations 133
Part VIII: Some Other Important Items
Twenty Nine Miscellaneous Valuation factors to Consider 135
Thirty Checking Up on Your Companies (& when to sell) 140
Thirty One How to Research a Company and Other Resources 143
Thirty Two Companies to Benchmark ‘Your Perfect Investment’ Against! 149
Compendium of Financial Ratios 155
Index 157
Contacting and About the Author 159
Serialization 2 is located
HERE