Worth's Greatest Stock Picks of All Time
Lessons on Buying the Right Stock at the Right Time
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- $4.99
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- $4.99
Publisher Description
Learn How to Pick the Right Stock at the Right Time
The momentum of the bull market spoiled us all—buying stock, any stock, was an almost surefire way to make a mint. Now, in a time of turbulent markets, stock picking has become a mixture of science and high art. With thousands of stocks to choose from, how can investors determine which ones will be future winners?
We all know there’s a time to buy and a time to sell every stock, but when is the right time? Timing stock buys so that you catch upward momentum is not luck, and Randy Jones shows you how to hone your buying and selling skills by striving to analyze the factors that made winners of the great stocks in the past. Why was AT&T a great stock pick in the 1920s, Polaroid a winner in the ’40s, Xerox in the ’50s, Teledyne in the ’70s, and Intel in the ’90s? The potential of these stocks was in plain sight—for those who knew how to read the signs. And perhaps as important is understanding the signs of decline and knowing when to sell.
Randy Jones analyzes twenty-five of the greatest stocks of all time, providing a framework for evaluating their strengths that can be used for future selections, including:
• Linking great management and bottom-line profits: Who were the faces behind AIG, GE, and IBM that led to profitability, and what was it about these people’s management skills that made their companies so great?
• Pathbreaking products: Polaroid, Xerox, and Amgen show that products that often seem to be overnight sensations were instead developed over many years, giving investors plenty of lead time to discover their potential as great investments.
• The innovative business model: Avon, McDonald’s, and Dell reveal that understanding how a company makes money helps you to understand its strengths and vulnerabilities.
• Investing during bad times: For some companies, such as Coca-Cola, Schlumberger, and Chrysler, nationwide economic downturns can actually be advantageous.
Worth’s Greatest Stock Picks of All Time has invaluable lessons for anyone in the market today.
PUBLISHERS WEEKLY
Defying the conventional wisdom that no mortal can outsmart the market, this study of fabulous stock run-ups of the last century argues that ordinary investors can learn to spot winners. Jones, CEO of Worth Magazine, examines past and present Wall Street darlings like Coca-Cola, Avon and Intel to illuminate why some stocks take off and others stagnate. His corporate histories are stylish and informative, and they engagingly introduce novices to price/earnings ratios, book value, return on equity and other measures of a stock's potential. Some telltale signs emerge: firms with patents on hot technologies, like Polaroid, are sure bets, as are those that maintain monopoly pricing power by continually innovating ahead of the competition, like Intel. Other signs, however, are less clear-cut. A company reorganization, a new CEO or an inspired ad campaign can all unpredictably affect a stock, and one pointer drawn from the General Electric saga is to "have faith...if you like the management and believe in them, stick with the company." Such "lessons" make the notion that average investors can pick the right stock at the right time seem shaky indeed. The problem, as Jones makes clear, is that there are many methods of evaluating stocks that don't always tell the same story, and many competing corporate strategies that may or may not pan out depending on a host of imponderables. Investors without the benefit of hindsight or time to pore over annual reports should beware.