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I am very happy to announce that my book The Confident Investor is now available for sale in paperback or ebook format. You should be able to buy it wherever books are sold. There is also a 2 chapter preview available in PDF format in case your local bookstore doesn’t have the book on the shelf and you want to browse.


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Now that the book is published, this site will change slightly. I will still publish reviews of companies on a regular basis for all to read. I will also publish commentaries for all to read. However, I will now publish some information that simply doesn’t make sense unless you have read my book. In those situations, I am actually providing more free content for the people that have purchased my book.  As I explained in the book, content costs money in a book format while my site is basically free no matter how much content I put on it. Therefore, to reduce the page count of the book and keep the cost down, I am moving some valuable content to the site for the enjoyment of only the readers of the book. It is free to register to see this enhanced content if you own the book.

If you decided in January 2006 to invest $10,000 in Apple, you would have increased your profit an ADDITIONAL 10.8% by using the techniques taught in my book. That is an additional $10,100 in 6+ years to be added to your savings account! To achieve this amazing return, you would have invested in Apple using the techniques in my book rather than using a simple “Buy and Hold” strategy.

In the same 6+ year period, you would have INCREASED YOUR EARNINGS by 42% if you would have used the techniques of this book for an investment in Google!

Every hard worker that is saving for retirement or a college fund should read my book, The Confident Investor.

You work hard at your job and try to invest money for retirement. When you look at your investment returns, you don’t see your money growing very quickly. Many people have lost money in the stock market over the past couple years. My book teaches you how to find great companies and profitably invest in those companies.

The combination of technical analysis with data analysis and key financial metrics results in tools to buy stocks at the appropriate time in extremely well-run companies. The result is the Decennary Time Weighted Average (DTWA), Time Weighted Composite Average (TWCA) and the Confident Investor Rating (CIR).
This book is not a Get Rich Quick scheme. There is no fast and easy way to build wealth by doing ANYTHING legal. My book explains a proven system to identify great companies, purchase stock at a discount in those companies, and accelerate wealth-building over time.

 

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In my book The Confident Investor I detail a possible trading example using 3 different methodologies.

  1. Traditional “Buy and Hold” strategy
  2. Traditional “Even incremental investment over time”
  3. My GOPM strategy – “Grow on Other People’s Money”

I chose the example around IBM [stckqut]ibm[/stckqut] because it is such a well-known brand even if it may not be the best of companies in which to invest. I felt that it was important to show that my technique works with most fair companies. It works even better on a good company.

I also specifically chose 2007 and 2008 as my example time period. I chose this example since many people still do not invest in stocks due to the plunge that happened in November 2008. This plunge wiped out considerable value in the stock market and persuaded too many people that investing in stocks is foolish. My example shows that if you stick with the “traditional” methods of incremental investing and buy-and-hold then you will be very susceptible to these market corrections. GOPM tends to reduce this exposure and even take advantage of it.

The tag line of this site and of my book is “Learn How to Invest With Confidence in a Turbulent Market” and there were few times in the last 15 years when the market was more turbulent that 2007 and 2008.  So I chose the worst of times to explain how my GOPM method can make it the best of times.

In the first scenario, an investor buys IBM stock and sits on it.  A traditional buy-and-hold technique.  He loses money in the crash and like too many people gives up on the stock market as a method to provide for his retirement.

In the second scenario, an investor invests $2,000 in IBM every 3 months. He ultimately takes a bath in the fall of 2008.

In the third scenario, an investor has read my book and uses GOPM – Grow on Other People’s Money. Obviously, the crash of 2008 affects him but he loses none of his capital and has acquired 39 shares of stock in IBM for only $7.22 per share or about 10% of the value of the stock at the time (after the crash, IBM stock had dropped to about $75).

I used a slight variation of my traditional technique for simplicity. Typically, I suggest that an investor invest the same dollar amount using GOPM techniques but in this case I varied the dollar and bought 100 shares of stock in each transaction. Had I used the same dollar amount, the return would have been slightly higher but the math would have been a bit more complicated to explain in this very first example of the technique.

If you are concerned about a major correction in the stock market wiping out your net worth, you really should read my book. You can read a sample of the book here and it includes Chapter 4 which is the chapter containing this IBM explanation.

If you are a registered reader of my book then you will be able to see the table below that shows the time of each GOPM trade and the profit or loss from that trade. It is FREE to register for anyone that has purchased my book.[s2If current_user_can(s2member_level1)]

  Invest Commission Total Profit Shares Free shares saved Cash
04/02/07 $9,521.00 $10.00 $9,531.00   100.00    
05/16/07 $10,587.00 $10.00 $10,577.00 $1,046.00 9.88 9 $93.17
06/19/07 $10,650.00 $10.00 $10,660.00   100.00    
06/19/07 $952.83 $0.00 $952.83   9.00    
07/30/07 $11,452.00 $10.00 $11,442.00 $782.00 100.00    
07/30/07 $1,030.68 $0.00 $1,030.68 $77.85 7.51 7 $58.21
08/28/07 $11,200.00 $10.00 $11,210.00   100.00    
08/28/07 $1,832.32 $0.00 $1,832.32   16.00    
09/17/07 $11,452.00 $10.00 $11,442.00 $232.00 100.00    
09/17/07 $1,832.32 $0.00 $1,832.32 $0.00 2.03 2 $2.96
12/20/07 $10,886.00 $10.00 $10,896.00   100    
12/20/07 $2,061.36 $0.00 $2,061.36   18    
12/31/08 $10,810.00 $10.00 $10,800.00 -$96.00 100    
12/31/08 $1,945.80 $0.00 $1,945.80 -$115.56     -$211.56
01/20/08 $10,498.00 $10.00 $10,508.00   100    
01/20/08 $1,945.80 $0.00 $1,945.80   18    
02/08/08 $10,327.00 $10.00 $10,317.00 -$191.00 100    
02/08/08 $1,858.86 $0.00 $1,858.86 -$86.94     -$277.94
02/12/08 $10,653.00 $10.00 $10,663.00   100    
02/12/08 $1,858.86 $0.00 $1,858.86   18    
03/17/08 $11,394.00 $10.00 $11,384.00 $721.00 100    
03/17/08 $2,050.92 $0.00 $2,050.92 $192.06 8.01 8 $1.54
04/15/08 $11,717.00 $10.00 $11,727.00   100    
04/15/08 $2,962.44 $0.00 $2,962.44   26    
04/29/08 $12,285.00 $10.00 $12,275.00 $343.00 100    
04/29/08 $3,194.10 $0.00 $3,194.10 $231.66 4.68 4 $83.26
05/13/08 $12,658.00 $10.00 $12,668.00   100    
05/13/08 $3,685.50 $0.00 $3,685.50   30    
05/20/08 $12,518.00 $10.00 $12,508.00 -$160.00 100    
05/20/08 $3,755.40 $0.00 $3,755.40 $69.90     -$90.10
07/15/08 $12,320.00 $10.00 $12,330.00   100    
07/15/08 $3,755.40 $0.00 $3,755.40   30    
08/11/08 $12,660.00 $10.00 $12,650.00 $320.00 $100.00    
08/11/08 $3,798.00 $0.00 $3,798.00 $42.60 2.86 2 $109.40
               
            32 -$231.06
              -$7.22

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