Book descriptionQuestion everything – and become a better investor in the process
Uncommon Sense takes readers on a four-century journey; from the dawn of public share ownership (in 1602) right up to today. But this is not simply a history book. It's a book for serious investors. Along the way it reveals the fascinating stories, the market characters and the important financial developments that have sculpted the thinking behind the value investor's craft. Blended throughout the narrative Kemp delivers an array of interesting anecdotes and rock solid logic regarding what works when investing in the stock market, what doesn't, and why.
Early in the 20th Century, Charles Dow remarked of Wall Street Operators that 'the more they actually know, the less confident they become.' Continuing in the tradition of that simple, elegant statement, this enlightening and entertaining book will have you thinking, acting and succeeding on your own in your investment endeavours.
- Learn to question conventional wisdom at every turn and develop a healthy skepticism as you plan your own investment strategies
- Develop a rich understanding of the stock valuation process
- Discover the methods that have been used by successful investors from the dawn of the modern stock market (in 1602) right up to today
- Learn how to interact simply and successfully with markets that are vastly complex and largely inexplicable
Uncommon Sense will have you questioning and doubting much that's stated about stock market investing, then developing your own winning strategy based on reason and understanding.
Table of contents
- ABOUT THE AUTHOR
PART I: THE LIMITS OF REASON
- 0.9 START THINKING FOR YOURSELF
- 1 THE PIED PIPER
- 2 THE ART OF PREDICTION
- 3 WHY ECONOMICS WILL NEVER BE A SCIENCE
- 4 FORECASTING THE STOCK MARKET
- 5 DOES THE STOCK MARKET FORECAST THE ECONOMY?
- 6 CAN CHARTS PREDICT?
- 7 MARKET TIMING
- 8 ARE COMPUTERS THE ANSWER?
- 9 THE EFFICIENT MARKET HYPOTHESIS
- 10 TRADER OR INVESTOR?
- 11 REALISTIC EXPECTATIONS OF RETURNS
PART II: STOCK SCREENS AND VALUE METRICS
- 12 WHERE TO START: STOCK SCREEN OR TRIAD OF ANALYSIS?
- 13 DON'T ACCEPT THE PE RATIO AT FACE VALUE
- 14 EARNINGS GROWTH ISN'T ALWAYS A GOOD THING
- 15 WHY DO PRICE TO BOOK RATIOS VARY?
- 16 SELECTING STOCKS BY DIVIDEND YIELD
PART III: THE GENESIS OF STOCK VALUATION
- 17 IT ALL STARTED IN EUROPE
- 18 TIME TO CROSS THE ATLANTIC
- 19 THE ADOPTION OF FINANCIAL REPORTING
- 20 THE MODERN ERA
PART IV: ‘CALCULATING' VALUE
- 21 INTRINSIC VALUE AND MARKET PRICE
- 22 EARNINGS AND EARNINGS GROWTH
- 23 THE DISCOUNT RATE
- 24 THE FORMULAE
PART V: BEATING THE STOCK MARKET
- 25 THE DURANT-DORT CARRIAGE COMPANY
- 26 SEARCHING FOR NUMERIC CONSTANTS
- 27 THE HUMAN CONSTANT
- 28 COIN-FLIPPING ORANG-UTANS (MY FIRST TRIPS TO OMAHA)
- APPENDIX A: WHY BOOK VALUE DIFFERS FROM ECONOMIC VALUE
- APPENDIX B: DEBT ANALYSIS
- Title: Uncommon Sense
- Release date: January 2016
- Publisher(s): Wiley
- ISBN: 9780730324249
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