The Worldlyinvestor Guide to Beating the Market: Beat the Pros at Their Own Game

I have problems with both the title and subtitle. Granted, I am neither a "pro" nor even a relatively sophisticated investor. However, I know what I do not know and think it is naive to claim that, over time, almost anyone (once having read this book) can consistently "beat the market" while beating the pros "at their own game." In the Foreword, Frank Petrilli (president & COO of TD Waterhouse) notes that Warwick presents "a plethora of easy-to-execute strategies the individual investor can use to outperform the investment management professionals." Part one presents a range of strategies for trading individual stocks. In Part Two, Warwick shifts his attention to index trading with exchange-traded funds, "offering insight into how to profit handsomely by trading broad market indexes instead of individual stocks." Then on to Part Three in which Warwick explains how to use the Internet to build a portfolio that "mimics -- and in many cases surpasses -- the performance of any stock index. In Part Four, Warwick provides a thorough guide to selecting mutual funs as well as an "incisive overview of the market timing strategies most frequently used by mutual fund and exchange-traded fund investors." All true. I have no quarrel with any of Warwick's advice. As have countless others, he stresses the importance of setting specific investment goals, formulating a plan to achieve them, know what your limits are (e.g. "risk/return tolerance boundary"), stay disciplined, "Remember your partner" (i.e. Uncle Sam, "the only rich uncle who never dies"), monitor developments rationally rather than "falling in love" with either a company or a stock, and finally, "Always Do Your Homework!" What Warwick offers is a primer. Viewed as such, I rate it higher than have others. As indicated, insofar as Warwick limits his attention to quantitative strategies, he seems to be on solid ground. However, as Don Mitchell correctly observes in his own Customer Review, Warwick errs when asserting that amateur and even semi-pro investors will outperform the indexes using the same strategies. My own advice to most of those who read this Customer Review of mine is the same as Warwick's: "Always Do Your Homework!" Specifically, read this and several other books which offer both information and advice. (Mitchell recommends four to which I now add Huguet's Great Companies, Great Rewards and O'Neil's 22 Essential Lessons for Investment Success.) The total cost of the books will be perhaps the best single investment you ever make, if measured only in terms of the bad investment decisions the books help you to avoid. Review their tables of contents to identify common subjects and issues, then compare and contrast "apples" only with "apples" and "oranges" only with "oranges." Warwick may not have all the right answers (indeed no one does) but he asks many of the right questions. Learn what you need to know and acquire that knowledge Then what? To paraphrase the celebrated IBM aphorism, p

Although I have been a long student of the markets and have read many investment books, I've rarely read books that have practical value. This book does! Many academic studies continue to push the idea that the markets will never let you achieve above-average profits because it is unbeatable. Well, this book identifies inefficiencies that are created by human behavior which allow the disciplined investors to get more alpha. For example, many stocks with bright futures are under-loved by Wall Street. With the right combination of clues, you can find these companies before you read about them in the newspaper using Ben Warwick's ideas. If you are a mutual fund investor, this book is for you. Many investment professionals like myself have seen a large amount of investors buying the wrong funds at the wrong time. Ben shows you what factors to really look for when selecting mutual funds and helps you avoid falling in the "chasing the hot dot" strategy so prevelant today. In other words, don't look at Morningstar ratings, instead, read The WorldlyInvestor Guide to Beating the Market before buying your next mutual fund.