October 2007
Beginner
205 pages
5h 32m
English
Content preview from Your Next Great Stock: How to Screen the Market for Tomorrow's Top PerformersBecome an O’Reilly member and get unlimited access to this title plus top books and audiobooks from O’Reilly and nearly 200 top publishers, thousands of courses curated by job role, 150+ live events each month,
O’Reilly covers everything we've got, with content to help us build a world-class technology community, upgrade the capabilities and competencies of our teams, and improve overall team performance as well as their engagement.I wanted to learn C and C++, but it didn't click for me until I picked up an O'Reilly book. When I went on the O’Reilly platform, I was astonished to find all the books there, plus live events and sandboxes so you could play around with the technology.I’ve been on the O’Reilly platform for more than eight years. I use a couple of learning platforms, but I'm on O'Reilly more than anybody else. When you're there, you start learning. I'm never disappointed.I'm always learning. So when I got on to O'Reilly, I was like a kid in a candy store. There are playlists. There are answers. There's on-demand training. It's worth its weight in gold, in terms of what it allows me to do.
Chapter 2. You Can Beat the Stock Market
Stock picking is becoming rarer everywhere in the world. Indexing, the opposite of stock picking, is becoming more popular. Stock picking is the act of choosing stocks that look likely to produce better returns than the overall stock market. Indexing refers to buying large baskets of stocks designed to track, but not beat, the market.
It might seem as though stock picking is as popular as ever. Wall Street firms issue regular recommendations on which stocks you should "buy," "sell" and "hold." Pundits argue over whether Google is headed higher or Intel is due for a comeback. Jim Cramer of CNBC's Mad Money bites the heads off of toy bulls and throws chairs around the set while delivering dozens of stock picks each night. But those are anecdotal examples. The flow of investor money tells a different story.
The most popular stock index by far is the S&P 500. Loosely speaking, it tracks the performance of America's 500 largest companies ranked by market value. A company's market value is the amount it would cost you to buy the entire company by purchasing all of its shares. The S&P 500 itself isn't an investment. Investors track its movements to get an idea of what the overall stock market is doing. Many index mutual funds are set up to mimic the S&P 500. At the end of 2005, these S&P 500 funds held $1.26 trillion in assets, according to Standard & Poor's, which owns the index (and charges licensing fees to mutual funds that mimic it). That's just ...
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O’Reilly covers everything we've got, with content to help us build a world-class technology community, upgrade the capabilities and competencies of our teams, and improve overall team performance as well as their engagement.Julian F.
I wanted to learn C and C++, but it didn't click for me until I picked up an O'Reilly book. When I went on the O’Reilly platform, I was astonished to find all the books there, plus live events and sandboxes so you could play around with the technology.Addison B.
I’ve been on the O’Reilly platform for more than eight years. I use a couple of learning platforms, but I'm on O'Reilly more than anybody else. When you're there, you start learning. I'm never disappointed.Amir M.
I'm always learning. So when I got on to O'Reilly, I was like a kid in a candy store. There are playlists. There are answers. There's on-demand training. It's worth its weight in gold, in terms of what it allows me to do.