The Little Book of Picking Top Stocks - How to Spot the Hidden Gems

The book "The Little Book of Picking Top Stocks" identifies the quantitative and qualitative traits of stocks that made it to #1 and tells the stories of how they got there. It aims for the massive upside of the #1 stocks but entails substantial risk. It also explains why conventional equity research provides only limited help in zeroing in on the index's future top performer. Author Martin Fridsons previous writings on the stock market include the books "It Was a Very Good Year" and "Investment Illusions" and articles such as "Ben Grahams Value Approach: Can It Still Work?"

Format: Hardback
Length: 256 pages
Publication date: 02 May 2023
Publisher: John Wiley & Sons Inc

Owning the Standard & Poors 500 Index's best-performing stock of the year can offer substantial returns, with a one-year total return ranging from 80% to 743% over the 2012-2021 period. This book identifies the quantitative and qualitative traits of stocks that have achieved this distinction and shares the stories of how they got there. A key indicator, the Fridson-Lee Statistic, is introduced for the first time in these pages.

While aiming for the massive upside of the #1 stocks entails substantial risk, it should not constitute more than a small percentage of your portfolio. However, attempting to pick the coming years top performer can provide an outlet for speculative impulses that might otherwise spoil a prudent, long-term investment plan. By investigating the statistically determined best candidates for #1, you can gain valuable insights into stock selection.

Conventional equity research provides only limited help in identifying the index's future top performer. Wall Street analysts focus on competitive strategies rather than identifying the #1 stock. Unfortunately, investment banks' fundamental stock reports are structured around a valuation metric that was discredited nearly half a century ago—earnings per share.

Author Martin Fridson has extensive experience in the stock market, with previous books such as "It Was a Very Good Year" and "Investment Illusions" and articles like "Ben Graham's Value Approach: Can It Still Work?" He has received prestigious awards, including the CFA Society of New York's Ben Graham Award and the Financial Management Association International's Financial Executive of the Year. His book "Financial Statement Analysis" (co-authored with Fernando Alvarez) has been highly regarded.

In conclusion, owning the Standard & Poors 500 Index's best-performing stock of the year can offer significant returns, but it requires careful consideration and a well-defined investment strategy. By understanding the quantitative and qualitative traits of top stocks and investigating the statistically determined best candidates, you can gain valuable insights into stock selection and potentially improve your investment outcomes.

Weight: 336g
Dimension: 186 x 135 x 19 (mm)
ISBN-13: 9781394176618