Book Review: The Neatest Little Guide To Stock Market Investing

The Neatest Little Guide To Stock Market Investing (2010) by Jason Kelly

This was the first book I read about investing in the stock market. The author provides a fairly well-rounded, beginner-level introduction to investing, which is what I needed at that point. In Chapter 1 he discusses the nature of stocks and the market, and provides a brief overview of key terminology. In Chapter 2 he covers the investing styles of well-known "Masters" such as Benjamin Graham, Philip Fisher, Warren Buffett, Peter Lynch, William O'Neil, and Bill Miller, indicating points of agreement among them. In Chapter 3 he discusses value and growth measures that have some validity based on historical analyses, then in Chapter 4 he provides an overview of a few strategies for building a portfolio, including discussion of leverage and technical analysis. Chapters 5 and 6 cover how to choose a discount broker, place an order, screen for stocks, and where to find useful information in print and online. In Chapter 7 he presents a detailed approach to building a core portfolio that includes several criteria (most of which are useful and sensible) and a worksheet for analyzing stocks based on those criteria. The buying and selling of stocks are addressed and some general advice is given for dealing with market fluctuations. Overall, the book is a concise and informative guide to stock market investing that helped get me started, even though the eventual strategy I settled on (dividend growth investing) differs in many respects from the approach presented in the book.

Note: I read this book in the spring of 2011.