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May 17, 2012


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While this is good advice, does the book do a good job of breaking these points down for more clarity?
I feel like something's missing that I'm not grasping.

The huge variety of occupations make it very difficult to state simple rules that apply very generally.

Even in a single department of a very large company such as the one I worked for there can be different individuals with greatly differing assignments. Personally I feel that books such as this are a big waste of time and money for many people, particularly those that are climbing the technical ladder rather than the management ladder.

The company I worked for had well over 30,000 employees and was the largest employer in Silicon Valley at the height of the Cold War. Employees were scattered over a large area in many different buildings covering design, analysis, test, research, manufacturing, procurement, finance, human resources, information processing etc. on a variety of major defense department projects.

Old Limey, any interest in a research project using your market database? JT McGee at MoneyMamba has a theory that would be intersting to test. See the article and then the comments -

Your words of advice seem so simple at first, but I realized upon reading the descriptions how much they tie together and how much more of all three I could be doing in my daily life! Sometimes I get so caught up in small tasks that I forget about the big picture. Thanks so much for posting this, I'll be referring back to it often!

I don't own or want to own a single stock so there is no motivation for me to spend a lot of time researching groups of stocks. The database I have contains 4,584 stocks and 8,105 funds with daily histories starting from either 9/1/1988 or when the stock was listed if after 9/1/88.

The trouble with buying a few individual stocks is the almost total lack of DIVERSIFICATION. It's difficult enough if you buy 5-6 actively managed sector mutual funds since sectors are also rising and falling all of the time so it still takes a lot of work to first, find some uptrending sectors, and then track their performance every day and decide when you need to trade out of a downtrending sector into one that is uptrending. This is definitely not for novices or anyone with a full time occupation.

A market like the one we are in, that has zigged and zagged and is below where it was 15 months ago, would be disastrous for a beginner to start trading stocks. Currently I own one hi-yield California muni bond mutual fund, everything else is in 20 CDs, 99 groups of muni bonds and 21 groups of corporate bonds yielding a combined average of 5%. That plus two pensions and two SS checks/month makes for a worry free life. I watch the market every day just out of interest but my main investment task these days is reinvesting the CD and Bond interest as it shows up on the 1st. and 15th. of each month for various holdings, which takes all of about 10 minutes for our accounts and those of our three children by using various tools on Fidelity's website. I haven't bought any CDs since 2008 as rates are now too low.

Therman --

Yes, there is much more detail in the book, but maybe not as much as you want/need. Check it out at your library and see if it's right for you.

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