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hey fellas,
i just joined the fool recently because i am interested in learning about the stockmarket etc. Having just left high-school as you can imagine its a bit of where do i start. You both seem to be well educated in the matter etc. I was wondering where you get / got your information from which allows such detailed analysis. I have ordered a couple of books to read which i hope will be benificial. I have also read up on many rules on technical investing - eg. if a stock falls by more then 20% in one day cut your losses etc.

Due to the changing to a membership style system on the fool boards i can't see the value in becomming a member currently. So if you guys could contact me @ adrian@xenolite.com incase you don't get a reply back in time i would be so glad to hear from you.

best regards

Adrian
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Hi Adrian

I started about 6 years ago - I have found that reading the financial papers help a lot, next a couple of books worthwhile reading are the money masters by John Train, Beating the Street and One up on wall street by Peter Lynch. Then some books which are a bit more complicated but I think should be read are common stocks uncommon profits by Fisher and the buffet books by Hagstrom and also a classic the Intelligent Investor by Ben Graham.

Then you have to start to learn how to read the financial statments - a good staarting book is analysing company statements by Roth. and of course all the information in fool school and I have also found fool seminars very useful. Also go to the foolish collective board - there a lot of questions get answered and maybe just lurk a while till you feel more comfortable.

hope that helps.

judy
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Judy's book recommendations are excellent. To these I would add "The Richest Man in Babylon" by Classon. Everyone should read this.

A question for Judy.
Is the Roth book an "easy" read?
Thanks in advance.

Barcoo.
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Hi Barco

the roth book is a very easy read and a good start (I often refer to it). The other book on understanding financials is 'How to Read a Financial Report' by John Tracy - this one is not such an easy read but it is in simple english. the Roth one is Australian based. (I have also done a subject ot the securities institute - the notes are very succinct but I have been spoiled by the fool seminars and the discussion boards so I was very disappointed with the teaching aspect of the subject)

Does anyone know of a book that helps you analyise bank and insurance company financial statments. I tried to do an analysis of ANZ with one of the guys on the Foolish Collective but it got very complicated.

Judy

what is the richest man in babylon about?
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Adrian

Stan Weinstein "Secrets for Profiting in Bull & Bear markets".

Justin Mamis "The Nature Of Risk"
This one I'd suggest is the best read outa all of them.

"How To Buy"
"When To Sell"

Trader Vic "Methods of a Wall st Master"

"Priciples Of Professional Speculation"

Jack Hutson "Charting the Stock Market"(The Wyckoff Method)

William Jiler "How Charts Can Help In The Stock Market"
This one is a ripper.

All the above are dealing with longer term trading(not day trading), although Trader Vic also covers the shorter term stuff.

JR


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what is the richest man in babylon about?

Very easy to read. Small book. Excellent first book about personal financial planning. Written about 50? years ago. Set in ancient Babylon. Written in the style of parables to illustrate the " basic rules".
You would be past this stage but like I said I think everyone should read it.
I like the KISS principle and this one fits that category. I think where a lot of people go wrong is in making things too complicated for themselves. Another book in this vein is "The Wealthy Barber". Covers basically the same ground (maybe a fraction more) as "Richest Man in Babylon" but does it from the viewpoint of some old blokes sitting around in a barber shop chewing the fat, teaching some younger people about money matters. As I said, I like the simple easy to read ones.
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Thanks for the compliment.

Having read Judith's, Barcoo and Jono's reply I would recommend all the books they have suggested.

Richest man in Babylon, Richest Barber to get an idea on financial strategies and how to set your financial goals.

Move on to the financial books and start reading BRW, Fortune and Forbes (I access Fortune & Forbes via the internet) to get a feel for current business strategies but don't invest in companies just because they get a mention.

I would also recommend just about all the books written by Trevor Sykes, aka Pierpont and a presenter on the SBS business show at 6pm Sunday nights (hasn't started again this year yet). There are 200 Years of Panic, The Bold Riders and if you can find it "The Money Miners". These books will give you a good history of the Australian business environment and more importantly what can go wrong and how horribly and quickly it can go wrong. Learning from other people's mistakes is equally important as reading about other people's success. Would also recommend Barry's book about Bond in this light as well.

You should read some biography and in this I would recommend Frank Lowy's biography and John Saunders biography - the 2 guys that built Westfield. The biography of Ron Brierley written in the late 80's is very good as well. The biography of Jesse Livermore published last year is also worth reading as well as the other pseudo biography written by Edwin Le Fevre and as I sit here I can't think of the name but it is still in most bookshops.

On a more complicated theme you could move onto The Power of the Gods by Bernstein which is heavy going but gives you an appreciation of risk and financial markets. And with this read about Long Term Capital Management and it's fall. Read about the 1929 crash.

My favourite company reports are the Berkshire Hathaway Annual Reports which are available on the berkshire web site. You could also visit the Toronto Investment club web site which is very helpful and has plenmty of links to other sites @ www.tic.com (I think). From an Australian perspective I would read every report that Peter Hall from Hunter Hall (www.hunterhall.com.au) and Kerr Nielsen at Platinum Capital have written recently.

Reading a few books will not make you a great investor but it is a start in the right direction. You can read all about riding a bike but until you actually hop on one all the reading in the world won't make you a bike rider.

I have been investing for 20 years and for the first 10 years I made all the mistakes under the sun. I bought and sold shares on tips, bought and sold options, even had a dabble in futures all with little success. The next 5 years I started making money at it and for the last 5 I am actually starting to think I have a bit of a handle on it.

So start small and expect to make mistakes, but most importantly try and understand from them. As time goes by you will get a feel for a strategy that you are comfortable with and companies you are comfortable with. There are 1400 companies on the ASX and if you get to understand 10% of them you will be doing well and it will provide you with plenty of opportunities.

If you print out all these replies to your post out and start reading, surf the web sites, and perhaps join an investment club if you can, and then start investing an a small basis you will be heading in the right direction. In 10 years time when your income starts to really take off as a result of your Uni studies then you will have the knowledge and skills to put the money to good use.

It's not as hard as it looks but it is not as easy as some people will tell you either and you will be amazed what small amounts can compound into over a lifetime of investing.

Regards
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"Foolish Collective Board"

Where do I find that please?

Aussie G
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William Jiler "How Charts Can Help In The Stock Market"

JR
My first real charting book - I still refer to it !!
Regards
Harmy
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My first real charting book - I still refer to it !!

Yep real easy to understand & when you consider that it was written ages ago you can't help but be impressed that the subject matter is still on the ball.

If you only buy one charting book this one would be my rec.

JR
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First of all thanks to you all for your helpful reponses. I have made a list of all the recommended books, magizines and website to try and investigate them all further.

However before i am out. I was wondering what sources you also use to gain things like financial statements of companies, annual reports (i know wayjo recommended Bershire hathaway and hunter hall) etc. So i can access the low down on perspective investment oppertunities.

Thanks again

Adrian
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I use the ASX web site on a daily basis to look at all company announcements. You can view the current day or search by company. I particularly pay attention to S205 notices which shows the buying and selling of director's holdings. The announcements also have the financial reports but not in a report format.

To look at a copy of the Annual Report I would suggest the particular company web site. The research part of the Comsec site also has every announcement in PDF format which is very handy at times.

The other approach you might want to take is get the Annual Reports of the listed investment companies such as Argo, AFIC, AUI, DUI, Mirrabooka, Djerriwah, Milton, Sylvastate, Whitefield, Huntley, Platinum and look at how they structure their portfolios. What I particularly look for is any substantial movements in their holdings between the years which might offer ideas (or warnings).

Another investor I forgot to mention before is Anton Tag.... who used to be the investment manager at Perpetual and now runs his own company. You can see what he is up to via the Sandhurst Industrial Share Fund which has its own web site (www.sandhursttrustees.com.au I think) and he writes a monthly report and lists his top 10 holdings. I find the fees he charges a bit high but he has a good track record.

Regards
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I just checked and it is www.sandhursttrustees.com.au and then go to the investments link and the Industrial Share Fund. This is the only fund he manages for Sandhurst, the rest are managed by others.
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Also stock house is a good one.

http://www.stockhouse.com.au/

Cause they also give you the companys website.

JR
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Aussie G

you can find the foolish collective board on speakers corner/foolish collective.

a link to it is http://boards.fool.com/Message.asp?mid=16694408 this post is a beginning post of a thread on studying ROIC and how to calculate it - chin is leading us and you are welcome to join. If not just access the board thru that link and you will find us. All newcomers are welcome and they are a nice bunch of people over there.

regards

judy
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