Title: Asset Pricing: (Revised) / Edition 1
Author: John H. Cochrane
ISBN-10: 0691121370
ISBN-13: 9780691121376
Over the past six decades, the U.S. stock market has averaged anannual return of about eleven percent per year. Yet, except for afew renowned Wall Street gurus, the vast majority of investors,both amateur and professional, fail to come anywhere close to thoseeleven percent average annual gains. Why do most investorsfail—and what do those very successful investment gurus havein common? The Guru Investor identifies the stock pickingmethodologies developed by some of history’s best and mostsuccessful stock market gurus—including Peter Lynch, WarrenBuffett, Benjamin Graham, Martin Zweig, John Neff, andothers—and shows how you can combine these proven strategiesinto a disciplined investing system that has been proven tooutperform the market. John Reese breaks down the very different approaches of each ofthe gurus—encompassing value, growth, and quantitativeinvesting—and lays out their philosophy and achievements,detailing step-by-step the secret formulas they used to beat themarket, while explaining why these legendary investors considercertain factors to be so important when analyzing individualstocks. Reese not only discusses the individual gurus, their strategies,and why they are important, but he also explains how to best usethese strategies in the real world, showing how to sift through allof the choices to find a strategy that works for you. The modelportfolio system that the author has developed turns each strategyinto an actionable system, addressing many of the common mistakesthat doom investors to failure. In addition to offering theseindividual guru-based models, Reese also explains how to combineand implement these approaches into a multi-guru system that willprovide you with a comprehensive, practical stock investingstrategy with a proven track record. He reveals when you shouldbuy, when you should sell, how many stocks you should own, and muchmore. All investors can learn from the thinking, writing, andexperience of Wall Street’s greatest investors. The Guru Investor,and its free companion Website—www.guruinvestorbook.com—will teach you thelessons of these greats and give you all the tools needed to putthose lessons to work in your investment strategy.
