The Maxims of Wall Street

If you are looking ofr a holiday gift, here is a great idea. The book Maxims of Wall Street: A Compendium of Financial Adages, Ancient Proverbs, and Worldly Wisdom by Mark Skousen is a great idea. Skousen is the noted economist, newsletter author, and investment analyst with an outstanding track record who has compiled an outstanding selection in financial and Wall Street related quotations.

Here are some examples:

"Wall Street is the only place that people ride to work in a Rolls Royce to get advice from those who take the subway." ~ Warren Buffett

"The most important lesson in investing is humility." ~ John Templeton

"My idea of a group decision is to look in the mirror."  ~ Warren Buffett

"Psychology is probably the most important factor in the market - and the one that is least understood." ~ David Dreman

"Know value, not prices." ~ Arnold Bernhard

"Never underestimate the size of a panic, nor the power of the politician." ~ Harry D. Schultz

"Owners of sound securities should never panic." ~ J. Paul Getty

"If you don't know history, you're history." ~ Mark Skousen

I highly recommend The Maxims of Wall Street for yourself and your friends and relatives.

Investing in One Lesson

If you are a novice investor, or maybe you are an experienced but unsuccessful investor, you need to read Investing in One Lesson by Mark Skousen, Ph.D. I have been a subscriber to Skousen's newsletter for many years, and he has an outstanding track record. So he knows what he is talking about.

For those who have never invested before or are just starting to dip their foot into investing, Skousen makes investing easy to understand. He talks about risk and the factors that cause investment losses. He also covers the importance of dividends and diversification.

In  Chapter 10, he breaks down the factors that go into choosing a good investment, and in Chapter 11, he describes the "Golden Seven" stock market categories.

He makes the book interesting with lots of stories and unusual concepts, such as why good news for the economy is often bad news for the stock market.

The book was published in 2007 but is timeless. If you want to get a handle on the stock market and investing, I strongly recommend Investing in One Lesson.