The Little Book That Makes You Rich

October 1, 2007
Self confessed numbers geek Navellier has developed what he claims is an effective and durable system to beat the stock market, long thought a money-loser by financiers due to its self-correcting nature. Rather than focus on one or two indicators, Navellier has weighted a basket of eight variables ("earnings revisions," "operating margins," "free cash flow," etc.), a quantitative strategy he shares in complex detail and happily accessible prose. Looking into the hows and whys of stock performance, Navellier lays open the complex economic environment and explicates his eight indicators in depth, showing how they relate to the market and the real world. Though he relates choosing stocks to everyday activities such as household budgeting and sports ("Never fall in love with your second baseman or your stocks"), his precise "by the numbers" approach is far removed from emotional interference. Still, he does take into account investors' personal preferences and predicament-risk level, stress, age, tax situation and so on. Providing numerous successful examples of his system's past performance, one can't help but wonder how long this system will continue to yield results; still, this good-natured guidebook will help anyone new to investing or interested in learning a new way to look at the market.

In a near-perfect audio lesson, a conservative analyst offers his best advice on long-term stock investing. A stimulating foreword and the author's overview provide an immensely helpful introduction to the sophisticated methods described. Navellier explains how quantitative investing works by recommending eight indicators of high-potential stocks, which include increasing sales growth, expanding operating margins, strong cash flow, earnings growth, positive earnings momentum, and a high return on equity. These criteria are fleshed out by discussions of broad financial trends and events that influence stock prices. With a vocal character that is ideal for financial matters, Mark Barbolak narrates this valuable guide with clarity and attention to its nuances and importance. T.W. (c) AudioFile 2008, Portland, Maine