Overview: Town writes about how anyone can easily see 15% returns by not diversifying but by picking the right stocks when they are undervalued and then selling when they’re over valued (like Warren Buffet). While this makes a lot of sense in theory I think he gives a very unrealistic outlook on how much work/research this will require. I don’t buy that you can do this in 15 minutes a week like he claims. I tried to go through his system (which is very complex and difficult to pull off) and spent hours spinning my wheels–and I feel I’m a fairly competent “normal person.” Read this book if you want to pick up some more strategies on how to pick stocks but definitely don’t pick it up if you think getting rich will only require 15 minutes a week.
Who will benefit most by reading this book: Business people familiar with investment lingo who want to get better at valuing a company
How the rest of us can benefit: If you want to learn about how to evaluate a company and its valuation this is a great book. It is very jargony so read only if you’re willing to look up words really do your homework.
Complete Review: At the end of the book is a Question and Answer section. These questions are pretty good and actually give a great overview to what you learn in the book. I would recommend reading this section before you even start reading the book because it will help you frame the book and think through questions that you might have so that the answers will pop out at you as you read them.
Published: 2006, 320 pages, 12 CDs
Reviewed: May 2008 by Tyler Christensen
Other Reviews: n/a
Official Site: http://www.philtown.com/
Tyler is a husband and dad, professor, writer, web designer, and DIYer.
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