"What Are Stocks Worth?"

ANALYTICAL BOOKS BOOKS FOR SERIOUS INVESTORS

THE INVESTOR'S DILEMMA

The average investor is at a serious disadvantage in the financial marketplace. Without a working knowledge of economic valuation tools, the investor does not know how much he/she should pay for a stock. He/She is at the mercy of self-proclaimed “experts”. There is a demand for advice, and television personalities, financial columnists, advisors, and brokers fill that demand. Investors are right to question how reliable that free advice is. Too many investors risk their money based on shallow advice, tips, rumors, and hunches as a result.

Most books for investors do not help. Publishers have a rule: the book must be an easy read, or it will be too hard to sell. An equation, or even a hint that the reader will be asked to do some work, is fatal. Publishers will reject the book. That is why so many books that do get published are filled with pabulum.

Analytical Books breaks this rule. We give investors quantitative, not just qualitative help. We bring economic valuation tools within your reach. These tools are not difficult to master. You may be asked to do a little arithmetic on your hand calculator. Or punch a few keys on your computer. But you will be richly rewarded with quantitative results you can apply with confidence.

We now offer investors three guides:

“The Mutual Fund Risk/Return Tree – Mutual Funds at Risks You Can Tolerate” guides mutual fund investors through the bewildering array of 15,877 mutual funds investors could choose from in 2003. Mutual funds are much riskier than most investors realize. Over the past 11 years, for example, equity funds averaged a return of 9.0%. But returns scattered widely around that average. One fund averaged a return of minus 27 percent; another averaged a return of plus 61 percent. Investors ran a 37 percent risk their equity fund could report a loss rather than a gain in any year.

Equity funds are the riskiest of all. Fixed-income funds are only 25% as risky as equity funds. And money market funds are only 7% as risky.

The book will help you quantify your tolerance for risk. Once you know your risk tolerance, you will know which of nine Risk Groups contain mutual funds with the highest returns at a risk you will be comfortable with. Click here for more details.

“What Are Stocks Really Worth?” helps investors avoid paying too much for stocks. Simple worksheets show what any stock is worth. Quantitatively. In dollars and cents. Once you know what a stock is worth you know whether the stock costs too much, is fairly priced, or is a bargain. You can make an intelligent buy/not buy decision. You will never pay too much for a stock again. Click here for details.

Stock Value is a spreadsheet program that carries out the analysis in “What Are Stocks Really Worth?”. Although you can do the calculations on a hand calculator, a computer makes it easier to analyze a firm’s performance, value a larger number of stocks, and test more random outcomes in risk analysis by the Monte Carlo technique. The program is written for Microsoft’s Excel⁽¹⁾ spreadsheet. Click here to see how Stock Value can make it easier for you to value stocks.

Learn about the author's credentials, and see what readers have to say. Click here to order either book and/or the spreadsheet. And let us have your comments.

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