The Disciplined Investor: Essential Strategies for Success

250 Pages·2007·3.37 MB·English

by  Andrew Horowitz

The
Disciplined
Investor
Essential Strategies for Success
The
Disciplined
Investor
Essential Strategies for Success
Andrew Horowitz, CFP
Second Edition
HFactor Publishing
The Disciplined Investor: Essential Strategies for Success
Copyright © 2008 Andrew Horowitz, CFP
Published by HFactor Publishing
1555 NorthPark Drive, Suite 102, Weston, Florida 33326
[email protected]
or visit www.thedisciplinedinvestor.com
All rights reserved. No part of this book may be reproduced (except for
inclusion in reviews in which no more than 500 words are duplicated), dis-
seminated, or utilized in any form or by any means, electronic or mechan-
ical, including photocopying, recording, or in any information storage and
retrieval system, or via the Internet/world wide web without written per-
mission from the author or publisher.
This publication is designed to provide accurate and authoritative informa-
tion with regard to the subject matter covered. It is sold with the under-
standing that neither the author nor the publisher is engaged in rendering
financial, accounting, legal, or other professional services by publishing this
book. If financial advice or other expert assistance is needed, the services of
a competent professional should be sought. The author and publisher
specifically disclaim any liability, loss, or risk resulting from the use or
application of the information contained in this book.
The Disciplined Investor: Essential Strategies for Success
Andrew Horowitz, CFP
Library of Congress Cataloging-in-Publication Data
Horowitz, Andrew.
The disciplined investor: essential strategies for success / Andrew
Horowitz.—2nd ed.
p. cm.
ISBN 10: 0-9787083-7-7
ISBN 13: 978-0-9787083-7-5
1. Title 2. Author 3. Personal Finance/Investments
Library of Congress Control Number: 2007939925
Printed in the United States of America
10 9 8 7 6 5 4 3 2
Acknowledgements and Dedication
The process of writing a book is not an easy one. There are
countless hours that need to be dedicated, all requiring focus
without distraction. To help me, I had input from many
individuals. They have all helped to bring The Disciplined
Investor from its idea stage in early 1999 to the final written
and bound product. A big thank you is due to all that have
come together in an amazing show of support.
Time, proofreading, and research are just a few of the essen-
tial tools that this special group of family, friends, and
colleagues provided. All of these are integral parts of the process
that helped me achieve the finished product.
The first and foremost person that I would like to
acknowledge is my wife, Jill, for her dedication to me and our
family. Without her, I would wander aimlessly day by day. She
is my north-star and my best friend, now and always.
My children, Lauren, Erica, and Brett will be the first to
get copies of the final print. They are my biggest fans, and I am
theirs. Each of them has a way of making me feel personally
and professionally successful from the moment they wake to
the time they go to sleep. Just looking at them fills me with
overwhelming pride when I think of the fine people they have
become.
Marnie Goldberg is my right hand as well as my left. She
is my Radar O’Reilly; she seems to know what I am thinking,
even before I do. As an Assistant, there is none better. As a
friend she has no competition. She is a rare jewel that I hope
will be a part of my personal and professional life for a very
long time.
Dedication, creativity, and organization are the hallmarks
of anyone who is successful. That clearly defines Michelle
McMillan, who has helped to organize this book from the pre-
proof stage. Michelle has an amazingly positive attitude and
brings a fresh edge to her work. All in all, she is the kind of per-
son that has your back and helps to bring calm to the everyday
chaos.
A special thank you goes out to many of the people who
helped bring information and research to the meetings when I
first began planning the contents for this book. One particular
person who had a hand in the process and should be recognized
for his hard work is Kirk Adamson, MBA. He was a great help
and many of the early ideas for several chapters can be traced
back to his work and efforts.
I would also like to thank all of my family, friends, and
clients for their continued support throughout the years.
Without you this book would not have been possible.
Finally, while there are scores of others that have had their
hand in the process, without Henry, “The Hammer,” and
“Pooker” I am not sure if this would have ever been completed.
You know who you are… Thanks!
Table of Contents
Chapter 1
Creating a Discipline............................................................1
Chapter 2
Quantitative Analysis ........................................................29
Chapter 3
Technical Analysis ..............................................................53
Chapter 4
Fundamental Analysis ........................................................73
Chapter 5
Risk Management ............................................................103
Chapter 6
Why Mutual Funds? ........................................................129
Chapter 7
Annuities and GICs..........................................................159
Chapter 8
Tools of the Trade ............................................................179
Chapter 9
Implementing the Plan ....................................................209
Chapter 10
Putting It All Together ....................................................229

PREFACE
The reason I have dedicated so much time to writing this
book is to provide you with the tools you need to make your
financial dreams a reality. It is my hope is that you will take
from these pages the important ideas that have helped so many
others reach their personal financial goals. They have done this
by simply utilizing the core investment practices explained in
each chapter and now proudly consider themselves
“Disciplined Investors.”
As you begin to read this book you may find it beneficial
to browse different sections rather than reading it straight
through. It is by no means essential to read the material in the
exact order in which the chapters are laid out. Rather, you can
scan over most of the book in order to get a good understand-
ing of how the information is presented. In fact, to save time
during your initial scan, mark the pages you are most interested
in—and then go back and read them thoroughly. After, focus
on the chapter(s) that you found to be the most
relevant to your particular situation, concentrating on the
specific topics you want to master.
Along with a small amount of dedication and a large
amount of desire, you are about to embark on the ultimate
journey toward financial success.
Read on, Read on…