The Neatest Little Guide To Stock Market Investing by Jason Kelly was the book that I read during the month of May. I am a little bit behind on posting this but better late than never! The last couple of books have been about personal development so I thought it was time to read a new investing book. I will honestly admit that this one has been on my bookshelf for sometime. So it was primed and waiting to be read. This book is geared more towards a beginning investor but there is plenty of good information for a seasoned investor.
Jason Kelly does a great job of explaining the basics of investing all the way through to teaching about different investing strategies. He does write in such a pleasing manner that I would be interested in reading some of his other work in the future.
Summary of The Neatest Little Guide To Stock Market Investing
The book is broken up into easy to understand chapters that build on each other. If you are a seasoned investor you may find yourself skipping around but I highly encourage a beginning investor to read the book from front to back.
It begins by teaching you to speak the language of stocks. The author takes the approach that the reader knows absolutely nothing about the stock market. So he covers the basics like the different kinds of stocks, the different ways to make money in stocks, how and why a company would decide to sell stocks and much more. In this early stage of the book he even introduces a lot of metrics like PE ratios, Price to sales ratios, return on equity and more. Don’t get too overwhelmed at this point because he does elaborate on these metrics and how to use them later on in the book.
Once he is done introducing you to the basics of investing he then displays them in use through some real world examples. He profiles 6 well known and very successful investors. Maybe you have heard of these guys: Benjamin Graham, Philip Fisher, Warren Buffett, Peter Lynch, William O’Neil and Bill Miller. In their profile he explains their investing style. He also shows the reader which metrics apply to that particular investing style.
At this point the author begins teaching some investment strategies like the Dow dividend strategy and doubling the Dow. He also presents a strategy where you invest in midcap stocks because they are well established companies with plenty of high growth still left in them. These strategies are of course presented with charts and graphs to help support what the author is teaching.
Since the author has taught you about metrics he then teaches you some accounting basics. He covers how to read a simple balance sheet and income statement. The lesson wouldn’t be complete without a bit of information on the technicals. So the author teaches some basics to reading technicals like simple moving averages, moving average convergence divergence and relative strength index.
Then he covers some popular brokerages and the benefits to each of them. He teaches about the different types of orders and when is the best times to use them. He lists a lot of great research sources from magazines, web sites and other publications. He explains stock screeners and how to utilize them to find good investment ideas.
After laying all of the foundation down he begins to teach the books strategy. Which consists of building a core portfolio, maintaining a stocks watchlist and building a reasons and limits worksheet.
Thoughts on The Neatest Little Guide To Stock Market Investing
Personally I enjoyed the book. I did find myself skimming some of the sections because it was covering information that I already know. For a beginning investor the book is great though. He literally covers all of the basics that someone would need to know. He covers how to research, where to research, how to buy, where to buy, what to buy. He doesn’t try and sell you on the best way to invest. What the author does do is present you with all of the tools that you need to develop your own strategy to become a successful investor. I highly recommend you give the book a read. You can buy a copy by clicking on the image at the top of this article or by clicking on the title at the beginning of this article.
Have you read this book? If so, I would love to hear your opinion!
So far, I have been keeping up with my goal of reading one book a month!
Look for another new article about a different book next month!
As always I look forward to reading all of your comments and questions, until then….. happy investing!
-Jason from MoreDividends.com
Be sure and follow me on your favorite social media platform:
MoreDividendsdotcom on Facebook & @MoreDividends on Twitter
If you would like to receive an email whenever a new article is published on More Dividends just enter in your information below!