The Dick Davis Dividend: Straight Talk on Making Money from 40 Years on Wall Street

Today is Tuesday, March 25, 2008. Last Wednesday, my portfolio dropped $154,229 or 8%. I am a successful investor who started with about $700,000 in February of 2002. Do the math! I'm almost all the way back today. Several of the "pearls of wisdom" in Dick Davis' book were comforting after that, my largest drawdown ever, and that is despite the fact I like to think I have "nerves of steel." His book should be required reading in any investment class. The same is true for you if you invest for yourself or your family. No matter how sophisticated you think you are, this 80+ year old man, with a lifetime's worth of experience will teach you something important and vital. If you are new, he will teach you lots. One gem could make or save you thousands or even hundreds of thousands of dollars. At 58 when I attend Continuing Legal or Real Estate Education Classes, I know a lot of what is being taught beforehand. I seek gems. Nowhere can that one gem affect your fortune more than in investing, and Dick Davis' book has hundreds. Read the book. Memorize all that you can!

Probably the best investment book I've ever read is this new book from Dick Davis titled appropriately, "The Dick Davis Dividend: Straight Talk on Making Money from 40 Years on Wall Street." Davis writes with great conviction about aIl that he's learned over the years and his book is truly a tour de force for investors. His detailed treatment of the ins and outs of both active and passive investment strategies is a real delight to read. It helps that I'm personally a big fan of his most fundamental recommendation - an 80/20 split between index funds and actively managed investments. If you're looking for one book to guide your investment efforts, this is the one - Dick Davis is the new "Ben Graham" for individual investors!

Dick Davis has done a great service to both novice and experienced investors by providing his concentrated wisdom about markets in his book "Dick Davis Dividend." The book is a veritable treasure. It cuts out false promises and hype endemic in most books on the type and deals with the subject in a comprehensive and intelligible manner. The subject of investing is of utmost importance yet deplorably neglected in our educational system. Dick has taught the subject with ardent sincerity and great expertise over several decades. Do not buy the book if you are looking for making a fast buck or looking for individual stock tips. Dick goes beyond the patronizing lures set by the financial establishment and focuses on furnishing his readers with solid and useful advice that will stand in good stead to them for a lifetime. I have read more than two hundred books on investing and have taught the subject at the college level. I have also been a long time investor. I find Dick's book to be one of the best on the subject of investments and would recommend it without hesitation. I am not easily impressed and I have my differences with Dick in some areas, like market timing, for example. But that pales before the unimpeachable wisdom contained in Dick's book. I am sure readers will find the book very beneficial for their financial prospects.

This letter which I sent to Mr. Davis says it all: Dear Mr. Davis: I hope that you get this message. I am in the middle of your book, The Dick Davis Dividend, and wanted to let you know how great I think this is. It is a must for every amateur investor. I have been playing the market, and have been glued to CNBC for years. Your candor, your honesty, and your insight has made me feel so much better about investing and about myself. The point you make about the dishonestly of TV personalities, the nearsightedness of CNBC, and the overall hype, is worth a million dollars. The fact that "no one knows", has been forgotten by me and many others, who are buffeted from day to day, by news, and talking heads. Your book has enabled me to let go, and relax. I'm sure the 2nd half will give me good ideas about what to do, with my fairly large portfolio. And yes you're quite right, about the value of inaction. After all, my worst moves have been 2nd guessing myself, and selling (Apple for one). Thanks again. Peter L. Coplin, M.D. He got the letter and thanked me. Now I'm thanking him. Great book.

Whether you are an experienced or inexperienced investor this book will help you understand the limitations of the so-called market experts, the news media and most importantly, your limitations. The sooner you learn these lessons; the better off you'll be for it. Don't rush through this 450 page book - Dick's lessons are best if left to sink in. Read the chapter on his personal background - it will give you a good understanding of who Dick is and how he came to obtain such useful information about investing. This book is not for those who want to actively trade stocks or who are looking for the next great method for picking stocks. This book is for the person looking to become a better long-term investor and for the person who wants to learn how to use her mind and the media to her advantage. Dick's discussions about the irrelevance of news, the role of the financial media, the under acknowledged role of luck and the utter unpredictability of the markets are spot on. His advice is so common sense, yet only obvious in hindsight. The wisdom in his book will likely prove to be timeless.