Taking Charge with Value Investing: How to Choose the Best Investments According to Price, Performance, & Valuation to Build a Winning Portfolio

Table of Contents

Part I

Chapter 1: Get Prepared
Take Control
Money Managers Are Like Car Salesman
Measure of Success (For Your Money Manager)
A Difference in Goals
A More Intelligent Form of Investing

Chapter 2: Economic Outlook
The First Step
The Dot-Com Bubble
The Recession – That Cut Us Deep
Getting Burned Has Its Affects
What Happens Next?
How Should I Invest in the Market?

Chapter 3: Myth-vs-Reality
Five Assumptions to Investing
Risk of Investing

Chapter 4: Value Investing … Or Something Like It

Part II

Chapter 5: Income Statement & Quarterly Progress
Income Statement
Income Statement Data
Using An Income Statement (To Make A Better Investment)
Quarterly Progress
Just Remember

Chapter 6: Balance Sheet & Cash Flow: The Keys to Long-Term Success
A Forgotten Measure
Balance Sheet
Using a Balance Sheet to Make an Investment
What to Know About Cash Flow
Just Remember

Chapter 7: Stock Metrics
The Homepage Metrics
The Less Popular but Still Important Metrics
Putting It Together

Chapter 8: Using Fundamentals to Make an Investment Decision
Simplifying By Goals
Situational Trader
Short-Term Investor
Long-Term Investor
You – The Fundamental Investor
Unmeasured Fundamentals
You as an Investor

Part III

Chapter 9: Behavioral Selling
What Moves a Stock?
Why Are They Selling and is it an Opportunity?
Sprint: Perception & Price Relationship
The Most Important Point to Remember About Market Psychology

Chapter 10: Panic Is Your Best Friend
Panic & Fear
Why Sell?
Buy Low Sell High
Questions about Chapter 10

Chapter 11: The Earnings Game
SODA—Expectations Cause Different Results
Netflix – When the Momentum Finally Runs Dry
Apple – An Exception for the Moment
HOG: Using Earnings to Your Advantage

Chapter 12: Change the Way You Think
Brain Behavior
Identification
Practice Makes Perfect
Quick Gains
Anticipating Gains
Realization of Loss
Change the Way You Think

Chapter 13: Understanding the Way You Think

Chapter 14: Digging Deeper Into the Way You Think

Part IV

Chapter 15: Most Valuable Lessons Come From Loss
Citi: My Best Trade
Lesson
Keep Track

Chapter 16: What Offers Value
Ten Ten 2 Ten Formula
Great Company Horrible Stock
Cyclical vs Secular

Chapter 17: Unconventional Diversification
What is Diversification & Why So Important
Why is Conventional Diversification Becoming Less Effective?
Re-Defining Diver
sification for a Flat Market
One-Size Does Not Fit All

Chapter 18: Success in a New Era
Two Eras
From Beverly Hills to East St. Louis
Don’t Play it by Ear


Conclusion

THE ALHPA SEEKER’S GUIDE TO VALUE STOCKSWhen to buy them. How long to hold them. When to sell them.

“This book will be welcomed by anyone looking to break free from their financial advisor and manage their own savings.”
—DAVID JACKSON, founder and CEO, Seeking Alpha®

“The world is an uncertain place. This uncertainty impacts the financial markets as much, if not more, than any other space. But don’t be afraid! Brian Nichols provides a personal, experience-based, and highly accessible framework for taking your investment portfolio into your own hands. There’s nothing pretentious or complicated about Brian’s approach. It’s straightforward common sense on how to invest in the stock market.”
—ROCCO PENDOLA, Director of Social Media at TheStreet.com and cofounder of the Options Investing Newsletter

“For investors who want discipline, or who want to escape the addiction of day trading, this book is for you.”
—GARY ANDERSON, author of Will Rogers and “Business Insider” Contributor

“I am pleased and honored to publish Brian Nichols’ articles on Market Playground and interview him on my radio program. With his new book, Brian brings his vast array of investing knowledge to the masses!”
—DEMIAN RUSSIAN, Editor-in-Chief, Market Playground

There’s more to investing than “Buy low, sell high.”

DISCOVER THE ALPHA SECRET TO VALUE INVESTING

Every financial quarter, more than 1.5 mil¬lion investors turn to Brian Nichols’ acclaimed “Seeking Alpha” columns for his insider tips on value investing. No matter what’s going on in the market, he’s got an uncanny knack for spotting the hottest stocks, the latest trends, and the greatest opportunities. Now—due to popular demand—he’s distilled his best-kept secrets into one comprehensive, easy-to-use guide for “seeking alpha” and maximizing profits in any market. You’ll learn how to:

• Take charge of your financial future
• Understand how hedge funds really work
• Determine if a company is a good investment
• Make smarter decisions based on value
• Use psychology to outthink the market
• Avoid the pitfalls of emotional investors
• Build a killer portfolio for long-term success

Filled with step-by-step strategies for choosing stocks, how-to tips for maximizing investments, and first-hand stories of high risks and higher rewards, this is a must-have guide for any investor who appreciates the value of “value.”

You’ll learn what the industry insiders really think about the recession, stock bubbles, balance sheets, cash flow, stock metrics, and other fundamentals of investing. You’ll discover the surprising effects of human psychology on the rise and fall of the market—and learn how to keep your head and your money intact during times of extreme behavioral selling. You’ll see how companies like Netflix and Apple weathered the storms of our ever-changing economy—and what it ultimately means for shareholders. Most important, you’ll discover the most valuable lessons an investor can learn from taking a loss—without losing anything yourself.

When you’re seeking alpha, you’re looking for value. In companies. In stocks. In your own financial future. That’s value investing at its building for a lifetime.