Text book for Art of Investing

 

The following books can be used as college text books:

Complete the art of investing (Printed version),

Complete the art of investing (Kindle version),

Using Fidelity,

Art of Investing for future millionaires (hard copy is also available),

Sector Rotation: 21 strategies, and

Sector Rotation for future millionaires (planned for 2021).

 

This article provides questions and homework assignments. Initially, they are only available for Basic Investing. The book number, section number and chapter number are based on the printed version of “Complete the art of investing”. If you have specific questions and homework assignments, would you send them to pow_tony@yahoo.com.

Recommended courses. It can be based on the article “How to start reading this book. Here are my recommendations:

Basic Investing

Book 1: Section I.

Intermediate investing

Book 2: Finding Stocks.

Book 3: Evaluating Stocks.

Book 5: Trading Stocks.

Advanced investing

Book 4: Scoring Stocks.

Book 13: Technical Analysis.

Book 6: Market Timing.

Book 7: Investing Strategies.

I Beginners

Book 1:

“How to start”

Homework assignment.

1.       Read at least one of the links.

“1. Simple market timing”

Questions.

1.       What does SMA stand for?

Homework assignment.

1.       Find out whether the market is up, down, or there is no indication.

 

”2 Quick analysis of ETFs”

 

Questions.

1.       What does RSI(14) stand for?

Homework assignment.

1.       Follow the example, evaluate the ETF SPY.

 

“3.  Rotate four ETFs”

Questions.

1.       List the four ETFs for rotation in this chapter.

2.       List four ETFs for rotation that are different from this chapter.

Homework assignment.

1.       Find out the best-performed ETF from the four in the last month.

 

“4.  Simplest way to evaluate stocks”

Questions.

1.       What is the different between Forward P/E and the P/E (trailing last 12 months)?

2.       Define EV/EBITDA.

Homework assignment.

1.       Find the EV/EBITDA of AAPL (Apple).What is the Forward P/E of AAPL?

2.       What is the Debt / Equity of AAPL?

 

“5.  Simplest technical analysis”

Questions.

1.       What is the difference between SMA-50 and SMA-50%?

2.       What is the major difference between SMA-50 and SMA-200?

Homework assignment.

1.       What is AAPL’s short-term trend and long-term trend based on SMA-50 and SMS-200?

 

A new book "Best stocks to buy in August, 2020

Click here for more detail.

Why it is better than the other book.

I notice there is a similar book on the market. Let me compare this book to mine and hopefully you will agree with me mine is a better book

 

	This book	The best 100 stocks to buy in 2020
Date of publish	07/28/2020	12/10/20191
No of stocks2	14	100
Performance	3	4
Stocks 5
Sold		250,000 copies 6

 

¹The publish date is important. The weather man predicts the weather tomorrow better than a month away. This book was written before the pandemic. Hence, the recommended stocks in airline and leisure sectors will lose big time. Be careful!

 

² The major reason for this author’s poor performances I bet is he recommended too many stocks. I rejected most of his recommended stocks.

 

³ I listed my performance in Book 1.

 

⁴ According to one reader of his book, he did not include performance of his last book and he did not beat the market for the last 3 years. Check out the comments yourself. The blind leading the blind!

 

Most of his recommended stocks have Fidelity’s Equity Summary Score less than 5 and most of mine have 7 or better. There is no balance required to open an account with Fidelity as of this writing.

 

Unless there are good reasons, I reject all stocks that have heavy insider selling. P/E is one important matric. However, it does not consider debts.

 

I also list simple technical analysis without using charts to enter the position when the stock is trending up.

 

⁵ I avoid most MLPs due to complicated filing tax returns. With folks working at home, I do not recommend any REIT.

 

⁶ When there are too many readers follow the same stocks, the performance may not be good in the long run.

 

·         You learn from a real investor, not from an author who never makes money in the market.

 

·         I recommended 20 stocks in an article Amazing Return in Seeking Alpha. If you bought them on the published date, you would have beaten the S&P500 index by over 100% without considering dividends as demonstrated in my other article A Tale of Two Portfolios.

 

·         I made 50% in 2018 by using my year-end strategy. I challenge any investor with this monthly return in a diversified portfolio of 8 stocks or more.

 

·         As if 1/2020, my annuity (not recommended to most) grows to 5 times mostly using Fidelity’s funds for sector rotation. The one-time investment was more than my highest annual income during my working years. Hence, I am not using my best performer among many.

 

·          I achieved 80% return in my largest taxable account in 2009. It could be the best time to buy stocks and I call it Early Recovery.

·         Recommended Apple at $55.72 (1-7 split adjusted) in April 19, 2013 as the only example in my book Scoring Stocks and I recommended selling it at $132 on 2/2015 with valid arguments described in this link.

http://tonyp4idea.blogspot.com/2015/02/dump-apple.html

·         My motivation to write this book is to share my experiences, both bad and good. If you are looking for ways to make 100% return overnight, there are many other books claiming to do so, and this book may not be for you.

·         Jesse Livermore was probably one of our greatest traders ever. Yet he ended up losing most of his money and then killed himself. The major reason was he did not follow what he preached. Recently a 20-year-old, Robinhood trader killed himself after losing $730,000.

 

We need to diversify our investments and it is better to be a turtle investor. Avoid risky trading such as options, margins and day trading.

Why you trust me on Sector Rotation

This book represents my years of investing experience, the hundreds of investing books I read and thousands of simulations. Hopefully this book will improve your financial health substantially as it has one to mine. I also hope that by reading this book you can become a better investor no matter if you are a beginner or a fund manager.

My children have no interest in investing, so I do not hold back anything. I expect my readers will do better financially if they can avoid my mistakes that I will point out in this book. Today and at my age I am a very conservative investor and am doing well with my investments. I wish I could have tried out many of my strategies earlier in my investing life.

·         I had a 50% return in one month in 2018 by using my year-end strategy. I would challenge any investor with this type of monthly return in a diversified portfolio of 8 stocks or more.

·         I recommended 20 stocks in an article titled Amazing Return in Seeking Alpha. If you bought them on the published date, you would have beaten the S&P500 index by more than 100% without considering dividends as demonstrated in my other article A Tale of Two Portfolios.

I challenge anyone who has a better one-year performance by recommending a diversified portfolio of 15 or more stocks in any publication.

·         In 01/2016, I recommended to buy OIL in my posts in Seeking Alpha's Wall Street Breakfast and my blog when oil was less than $30 per barrel.

http://tonyp4idea.blogspot.com/2016/01/oil-price.html.

·         Recommended Apple at $55.72 (1-7 split adjusted) in April 19, 2013 as the only example in my book Scoring Stocks and I recommended selling it at $132 on 2/2015 with valid arguments described in this link.

http://tonyp4idea.blogspot.com/2015/02/dump-apple.html