I'll Drink to That!!!!!

How to Make Money in Stocks by William J. O'Neil.

This guy talks like he knows the biz, and he has the history to prove it. He started out with a few grand and ended up with enough cash to buy a seat on the NYSE. He lays it all out in front of you, with an eloquence that seems to say, ”this is so easy, anyone can do it, as long as you follow my system.” The only problem is that his instructions are open to great interpretation and are at times, contradictory.

For example, he proposes that stocks that are “market leaders” are the best stocks to buy because they will remain strong in a bear market but goes on to say that these same market leaders will “turn on their heels first.”

But, besides the overall wishy-washy advice, there is some meat in the book. On pages 103-106. Here he gives information on when to sell. Not cut and dry though. 36 separate reasons to dump a stock. You better have them memorized as well, so you don’t make a crucial error and see a head and shoulder pattern when you should have seen a cup with handle pattern.

Overall, I would have to say this is a good book to buy, study, read over and over again, then buy other similar like-minded books, and trade (uh, invest) in some stocks. That is, if you don’t already have a job and are rich enough to not be hurt with all of the commissions etc…

I can’t devote that kind of time, and frankly, I am busy all day. What’s more, how can I be constantly trading and doing all this research into stock patterns and charts and whatnot. It is not for me.

Then, a few chapters in the middle of the book are nothing except an add for Investors Business Daily.

I know this rambles a bit, forgive me, it is late. The overall message is cut your losses early, buy market leaders with good solid earnings, and let your winners ride. Oh, and there are a few pages in the back that say if you don’t want to invest the trememdous amount of time it takes to use his system, then buy some mutual funds, hold them long term, and you will be rich anyway.

So what to buy with my own $500 cash-money based on this book? This is easy. He helpfully compiles a IBD 100 index of great stock buys. So, looking down the list….ah, here we go, SAM. Boston Brewing company. They make Sam Adams beer. Sounds good to me. Buy it and forget it. Case closed. Sorry about the pun.