The Successful Investor

I’m probably most fascinated with William O’Neil. More than Warren Buffet, more than Benjamin Graham, or Jim Cramer. He has created an incredibly successful investment strategy that I’ve known of for years. His strategy blows away the S&P 500, the ultimate benchmark. He has used it to launch probably the best daily investment publication Investors’ Business Daily (a must read for investors… I used to read it regularly and will once again spend to make) and I know some brokerages use similar strategies to pick stocks that they push on their clients.

Well, I finally read his first book, the Successful Investor. And I must say, there is just too much for my simple mind to grasp.

In my mind, the basics are the same as Phil Town and the Rule 1 investor. Pick best of breed companies in best of breed industries. Don’t worry about buying high, because you can still sell higher if it is best of breed. Phil takes it one step further, make sure its priced at a 50% discount (this can be at a 52-week high if it is valued right). I can buy into this side of the strategy.

However, the timing aspect of The Successful Investor is beyond me. Analyzing endless chart patterns to know when to get in and out of investments. Yes, market timing is essential and yes, you must trade stocks as they rise and fall, but I need something simpler. I just don’t see a cup-and-handle when he says its there… maybe I should have majored in art. It needs to be easier for the left-side of my mind.
I think, based on my readings to date, Phil Town’s approach is both simple and elegant. I’ve read his book 1 and 1/2 times (before the library demanded the book back – $20 could go to a share of stock you know). The indicators Town suggests are easy to catch and I still believe that the identification of quality investments are about the same between O’Neil and Town.

Now, its back to the library so I can finish Rule #1.

Related posts:

1. Rule #1 Investor I just finished reading Phil Town’s Rule #1 book. It...
2. Two Months, Four Days Well, the title has nothing to do whatsoever with what...
3. Mechanical Engineering Two weeks into mechanical investing has been a hair-raising, ulcer...
4. Welcome To the Learned Investor Welcome to the Learned Investor. Well maybe the unLearned Investor....
5. Which way did he go? Well, I guess I need to figure out exactly how...