O'Reilly logo

Buffett and Beyond: Uncovering the Secret Ratio for Superior Stock Selection, + Website, 2nd Edition by Joseph Belmonte

Stay ahead with the world's most comprehensive technology and business learning platform.

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, tutorials, and more.

Start Free Trial

No credit card required

Preface: From Then Until Now

The first edition of this book was written between 2003 and 2004. We had just gone through the great market advance of the late 1990s with 1999 being the absolute best year for our stock selection method in my market history. The rest of the stock market also roared and soared. Everyone seemed to be an expert or at least had tips on the next stock that would gain 100 percent over the next six months. The Internet gave everyone free research on company data, and people quit their jobs to become day traders.

Then there was Warren Buffett. Many of the new brokers and new investment advisers of that time had never heard of him. To all the younger folks, he was a relic of the past. In the late 1990s, fundamental analysis was not important because everything went up in price. Then the bubble blew. The tech bubble began to break in 2000, and the culmination of the market decline took place in 2002. By then, billions of dollars had been lost, especially in those companies that had no earnings. Enron happened and stock analysts were exposed because of their conflicts of interest. Wealth managers began scratching their heads. What happened?

The market came back to life in 2003 with our model portfolio gaining a bit over 52 percent, doubling the S&P returns. During the next four years we saw a housing boom turn into a housing bubble followed by the eventual bubble burst in 2008. We are still feeling the effects of that disaster, and some folks will never recover ...

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, interactive tutorials, and more.

Start Free Trial

No credit card required