by Harold Bierman (Cornell University, USA)

Table of Contents (44k)
Preface (47k)
Chapter 1: Three Basic Rules (73k)

Professor Bierman is the Nicholas H Noyes Professor of Business Administration at Cornell University. He has been a consultant for many public organizations and industrial firms and is the author of more than one hundred fifty books and articles in the fields of accounting, finance, investment, taxation, and quantitative analysis. In 1985, he was named the winner of the prestigious Dow Jones Award of the American Assembly of Collegiate Schools of Business for his outstanding contributions to collegiate management education.
 

The objective of this book is to help an individual (or a family) design a personal investment strategy. It explains how stock markets can be used to make a large fortune from a small investment. It also recommends an approach to increase a reasonable return on investment and explains the importance of investment alternatives.

The book is based on the premise that the US stock market is not too high compared to the long-term value of its securities. It further assumes that readers are interested both in return likely to be earned on investment and the risk of not earning the return target.

The focus on this book is on “personal” investing. It begins with three basic rules of investing and concludes with ten subordinate rules and other suggestions for investing.

• Three Basic Rules
• Diversify:
  • The Expected Return
  • Securities are a Fair Gamble
  • Types of Financial Securities
  • Investment Tips versus an Efficient Random Walk
  • Analysis for Buying a Stock
• Tax Considerations:
  • Stocks versus Bonds
  • Taxed or Tax Deferral Accounts
  • Dividends versus Share Repurchase
• Market Timing:
  • The Stock Market Level
  • The Stock Market is Too High or Is It?
  • Ten Subordinate Rules and Other Suggestions