12/10/2009

Review of The Standard & Poor's Guide to Selecting Stocks: Finding the Winners & Weeding Out the Losers (Hardcover)

The title of this book should be selecting stocks using online screening software. There is little on fundamental analysis of the kind used by S&P in determining their ratings. It's not a long book, about 222 pages. There are chapters on the various kinds of stocks one might screen for: a chapter on growth stocks, for example, briefly describes the key characteristics of growth stocks, and then gives the parameters for 3 or 4 different screens that can be used to find stocks. And so on for value stocks, growth at a reasonable price (GARP), dividends, momentum, specific sectors, mutual funds, bonds, and a couple more. The author doesn't argue for any particular investment style, just describes the alternatives and how to find those stocks. There are many free on line screeners that can be used to follow this method, for example from Yahoo and Morningstar. The best on line screeners, with the most available screening parameters, however, cost subscription money. I hope this review helps explain what this book is and what it isn't, since the title is not particularly informative.



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