Straight Up Stock Investing provides a complete framework for investing in individual stocks. The framework consists of three pieces: identification, valuation, and personalization. This book is for serious investors who want to spend time on their investments, just not all their time. It’s for investors who aren’t satisfied with just being passive, who are willing to step forward and take control of their financial future. It’s for investors who want their wealth to grow and want to know how to do it.
I show you why you need a framework. Why without one all that information in your head just bounces around and doesn’t grow your wealth. Why without a framework you end up following the crowd and harboring nagging doubts about your investments. And why with a framework—the one I’ll teach you—you’ll become a confident and wealthier investor.
Identification is the first piece. Identification means finding the stocks you’d consider buying at the right price. Identification means finding your gold mine and staying in it. There are some qualities you want in the companies you invest in, and some qualities that you don’t. I’ll show you which is which. And I’ll show you that you have unique abilities that give you a leg up, even if you don’t know it.
Valuation is the second piece. Valuation means determining the intrinsic value of a share of a company. What it’s really worth. I’ll show you how to think about valuation and how to do it. And you don’t need to worry about the math. Spreadsheets make it all a breeze.
Personalization is the third piece. Personalization means adopting the practices that lead to success and adjusting them to fit your circumstances. I’ll teach you how to manage risk, how to size your positions, when to trade, and more. And I’ll show you how to do these things in a way that fits your goals and situation. And I’ll also teach you the number 1 rule of investing. By knowing this one rule, you’ll protect your wealth and always be ready for opportunity. Interested?
This book is divided into three sections, one for each of the pieces of the stock investing framework: identification, valuation, personalization.
Section 1 is identification. I start by explaining why it’s important to have a list of stocks ready before you buy a single share. In the three chapters of this section, I explain how to build your list. I show you the company characteristics to be desired, the characteristics to be avoided, and how to tap into your unique skills and experiences to give you an advantage. (Yes, you have them!)
Section 2 is valuation. To know if a stock is cheap or expensive, you must first know what it’s worth. I show you how to value companies. We start with the simplest model and work our way up. I show you why it’s important to distinguish cash flows from earnings and why the internal rate of return is a great tool for evaluating investments.
Section 3 is personalization. Having constructed your list of potentials and valued them, you’re almost there. Now you need to know how to pull it all together. How do you to stick to the plan? When do you trade? How much do you trade? When do you sell? How do you manage risk? I share my answers to these questions. But more important, I show you how to answer these questions for yourself, because your life, your goals, are unique to you. The book concludes with the number 1 rule of investing. You don’t want to learn this one the hard way.
- Qualities of Good Stocks
- Qualities of Bad Stocks
- The Basic Model
- The Expanded Model
- High-Growth Companies
- Reading Financial Statements
- Risk Management
- Investing Discipline
- Personal Practices
- The Number 1 Rule of Investing
Straight Up Stock Investing: A Complete Framework for the Serious Stock Investor By Adam Dunsby pdf