The WorldlyInvestor Guide to Beating the Market: Beat the Pros at Their Own Game - Hardcover

Über die Autorin bzw. den Autor

BEN WARWICK is the Market View columnist for worldlyinvestor.com and Chief Investment Officer of Sovereign Wealth Management, Inc., a registered investment advisor that employs sophisticated wealth management strategies on behalf of institutional and high-net-worth families throughout the United States. His previous books include Searching for Alpha: The Quest for Exceptional Investment Performance (Wiley 2000); The Futures Game; The Handbook of Managed Futures; and Event Trading. Mr. Warwick received his BS degree in Chemical Engineering from the University of Florida and his MBA from the University of North Carolina.
WORLDLYINVESTOR.COM, a global financial information and analysis Web site rated as one of the best on the Web by Forbes, Fortune, Money, Barron's, Business Week, and Online Investor, provides news and analysis for the individual investor. One of the few sites to cover all markets around the world, worldlyinvestor.com also offers users a portfolio of newsletters. Worldlyinvestor.com is distributed on Yahoo!, Go Network, Lycos.com, xoom.com, Geocities.com, Ziff-Davis Interactive Investor, Planet Direct, and Raging Bull, among others.

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PROVEN STRATEGIES FOR MARKET-BEATING RETURNS FROM THE LEADING ONLINE SOURCE OF FINANCIAL ANALYSIS AND INSIGHT
"Warwick and Worldly are leading the way in empowering individual investors with tools that technology and the Internet have made possible. Complete with great graphics and examples, readers have never had a better resource to guide them to a winning investment strategy in easy-to-read and easy-to-act-upon language."-Stephen Cohn, Managing Director, Sage Online
"An excellent primer for any investor, Ben Warwick's book really does live up to its title. With hundreds of charts and many interesting insights, he gives you the tools with which you can become your own investment expert."-Homi Byramji, President, Market Guide, Inc., Senior Vice President, Multex.com, Inc.
"It's a war out there in the markets, and what most individual investors don't realize is that they've got all the weapons they need to win it. Ben Warwick gives investors the knowledge and the confidence to take on the professionals at their own game and come out way on top."-Donald L. Luskin, President and CEO, MetaMarkets.com, Inc.

Aus dem Klappentext

The investment world has experienced the largest paradigm shift in its history. In the past several years, market power has been transferred from professional money managers to individual investors and traders. In today's market, for the first time, it is possible for a diligent private investor to outperform a seasoned professional. But given the plethora of choices--from day trading and mutual funds to the variety of different types of stocks--where are the best opportunities for success?
The WorldlyInvestor Guide to Beating the Market offers individual investors twelve highly effective yet simple market-beating strategies that cover the full range of stock trading, including momentum, growth, value, distressed stocks, and exchange-traded funds. Each chapter is filled with not only the rationale and numbers behind each strategy but also pertinent and informative anecdotes. You will find enough choices to suit your personal investment style, plus:
* Stock trading methodologies used by professional investors for selecting growth, momentum, and value stocks
* Six ways to trade exchange-traded funds for maximum profit
* Specific trades around calendar effects and government economic releases
* A method for selecting the mutual fund with the best odds of producing market-beating returns in the next twelve months
* A sector trading strategy that has beaten the market eight years in a row
. . . and much more to provide you with winning strategies for making money in the market-with the invaluable guidance and expertise of one of the most acclaimed sites on the Web.

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Chapter 1: Strategies for Individual Stocks

The market is made of many types of stocks. Some enjoy superstar I status, are followed by a large number of Wall Street analysts, and boast earnings that exceed Wall Street expectations. Computer maker Cisco Systems (CSCO), for example, falls into this growth stock category. The company has an enviable record of earnings growth, and its large market capitalization has made it a favorite of many professional investors. The stock has handily exceeded the return of the S&P 500 index (see graph on page 12).

At the other end of the spectrum are stocks in out-of-favor industries that, because of their lack of potential, are virtually shunned by mutual fund managers and most private traders. For example, few investors would go near Lehman Brothers (LEH) a few years ago. Concerns over the brokerage firm's losses surrounding the failure of Long-Term Capital Management scared away many large investors, and the stock fell dramatically in the summer of 1998. But as the graph shows, the company was able to regain profitability and has maintained an impressive lead over the broad market indexes, the S&P 500. Although these two companies have little in common, the result was the same: true market-beating performance.

Part One shows how private traders, armed with the democratizing power of the Internet, can identify these stocks before the large institutional traders and mutual fund managers notice them and ramp up their price.

In examining our four distinct investing styles (see table on page 13), we will use a tool called a stock screen. Simply, a stock screen is a tool that is used by many professional money managers to identify those stocks that have certain characteristics that have been deemed desirable. To allow users to highlight the information that matters most to them, screening engines let one apply software "filters" against the contents of a large stock database. For example, one can sort all stocks listed on U.S. exchanges for those with earnings that have increased 20 percent per annum and boast a market capitalization of at least $1 billion. The features in many of the better search engines allow users to sort by virtually any stock market measurement, from recent trading volume to quarterly sales revisions.

Using screening tools, we will search through every stock that trades in the U.S. markets to cull those that best suit our criteria. But instead of your having to procure and utilize a screening tool, worldlyinvestor.com has done the work for you. Investors need only log on to the site, print out the list of the screened stocks, and then click over to the Internet brokerage of your choice and make the purchase recommendations.

Chapter 1 examines momentum trading. This strategy looks to make big returns by trading stocks that have had the most price appreciation. The mantra of the typical momentum investor is "what goes up keeps going up." In a bull market, the momentum style of investing can produce incredible returns.

Chapter 2 looks at growth investing, which involves buying stocks that area bit more established than momentum issues. Growth strategies dominated the investment scene in the 1990s, and using these criteria will enable savvy private investors to have the opportunity to cash in on this dynamic and time-tested style.

Chapter 3 focuses on value investing. Investing in value stocksthose companies that trade close to their book values-has been proven to be a superior investment style over the past 50 years. We will examine some new ways of looking at value investing, and some of the companies that fall into this category.

Finally, Chapter 4 examines distressed stocks-those that have been beaten down so far that few investors will touch them. As we shall see, the returns of these stocks are often superior to those companies that have established track records of profitability...