Wisdom on Value Investing: How to profit on Fallen Angels

211 Pages·2009·6.712 MB·English

by  WISDOM, Gabriel

$<:'795 USA $!3 95 CAN
Like <beep. "'c tend to 1()1l0'" .1 herd rnenraliry-c-we
Ho..k (0 box \lffil,.l' hi«. tJU} the IJIC"i1 III t-nhion and
pd~el and buvand Sol'II stocksba:.cJon theebband
A(I.... 01financi..lpundits ..nd rn.un rreamlI1\C'SIOrs
In~lLng m the stock market l~ one plccc though.
whereitp..n 10 bed lone \\011.Turn011 the I,'or pick
up J. nC\\ pJper denng ume 01 market rurbulencc.
and ....arch lI1\l·)tors all like lemmmp marching 10
sea. Lntoounnclv, thc~ are .11"0) 'CIting themselves up
fortailurc-c-anddt'\'3.,tJ.llng 1<l\\C
In Wisdom till t;i//ft h,NJt;'lg HUll to Pmfit 011 fill/m
Allgth. ~c,l\onnl mvcsrmcnr advi-cr ..nd popular
broadcaster C,ll-od Wi,dotn tl}\ out .1 diljcrem kind
ofvision !<Hill\cstingIn rhc51O~'k market,or;tnyother
marker-c-one th'll promises IU put ynll 011 ,1 unique
p.nh to success, far from the angui-hcd cri..s 01 the
investing 1Il.1~'. \X'i,dom In.Jkts the argument th.lt.
rather rhan lol!tl\\in£ fashion. Iht· smart invcvtor sravs
calm and wam pallcndy (or the incredibledcals-c-thc
Fallen An~15 Ihal arccerrarn 10comealong
8J'iC'\I on 'IXisdorn's profNlon.u expcnenu: and his
popular l-alleu An~eh mvestrnem trah.'g)-which
1.\ p..n ...Ib IC ~'OIIUt' iovewmg :IIlJ p.Hl 1l('h.1,IOU.!
finance this,,"I\C.easy-to-follow guide reveal
• Ho.... to maximize c.Jrnmp J.nJ mmunize In oc; In
aI~~type of marker
• The hahmut succcsstu] investor
• \Xh\ vou should beywhen l:\'C'r~on<:i\...omplaining
and sellwhen ther arc cclcbranng
• The importance ofh.1\ing an exitsU,lIqW
• WIll' Wt' need to learn to live with ~1O..k market
volarilitv
l'repaeing vou to take .l\hJntJgc uf OIhc:r\' mi~IJke\.
Wlido'"(HI ~;z1M /I/l'rrrmgclcarlvJi,t;ll\\C\ hl)" vrocks
with the most promlsc arc ones Ihat \'(,111 \UCt'1 has
u:mpurarilv marked down ....irhout regard to their
undC'rl~'ingvalue, and explains he.... this type01value
discount pro\idt~J nlJ.rgm 01 ~J.Ii.·1\ during ditli,ul!
times and SUO\tJllIiJ.l upside re.....lrd\ tor rhosc ....ho
find rhrm .:-arh enough
..
" •
" " "
Withthisroolforin" tor uf:tllsmpc'r-""hethetvou
have been 31 thegame tor .1while or are jUM dipping
your roes In rhc market tor the nl'$l rime--G3lmd
W~om off~rs Ius urue-resred popular wuegy tu
1Ilttga kg up on the ...omplcx and Jiffilult an
1Ove111ng.
GABRIliL WISDOM a cc-founder ofAmcrl n
1\1 tanagc:menl Ll. J. d 01}('(It rfJt' Don
c:ntIunng radio personalioes, Ikgi In 1%8
...10 underground F t di rock h fi al
commenranes ~ appeared ID nd UOfl on
( B. R.tdto and on PR. He nusuged more tb
3 billionJ\lll;l,h for wealrh In to [KC!' 19 ,IS
cnrrr.lna~rof rwo pubhc mutual funds. and h •
..billvprogr2mcurledon:affillllC f[he: BuSJ Ti1k
lUJi.) (WOrk. Wisdom serves on ~l bo;1SnJ •
including the Harvard HW"m Schcel lumni Club
ofSan Diego. and, a licensed pnvare pilot
JOP. r Hs earliest recollection of .t$SC{ garherlng
occurred on a lOp to florid.t with hi p:lIl'nu when
he W2 five IIr six years old. with his triumph.101
VI('Wry. in a sea shell-collecting contest urrcnrly,
Ia h i a popular wruer fur ,n~I".!1 new paper and
publicanons.
\ IMt wwwgabnclwisdom.com
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Wisdom on
Value Investing

Wisdom on
Value Investing
HOW TO PROFIT ON
FALLEN ANGELS
Gabriel Wisdom
WILEY
JohnWiley& Sons, Inc.
Copyright©2009 byGabrielWisdom.Allrightsreserved.
PublishedbyJohnWiley& Sons, Inc., Hoboken, NewJersey.
Publishedsimultaneouslyin Canada.
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LibraryofCongressCataloging-in-PublicationData:
Wisdom,Gabriel, 1950-
Wisdomonvalueinvesting: how to profiton fallen angels/
GabrielWisdom.
p.cm.
Includesindex.
ISBN978-0-470-45730-6 (cloth)
1. Investments. 2. Stocks. 3. Speculation. l. Title.
HG4521.w497 2009
332.63'2-dc22
Printedin the UnitedStatesofAmerica
10 9 8 7 6 5 4 3 2
To every investorwhodeserves toprosper

Contents
Foreword ix
Preface xi
Acknowledgments xv
Chapter 1 TenTraits ofTheWorld's Greatest
Bargain Hunters
Chapter 2 Fallen, Not Falling (An Important
Distinction) 15
Chapter 3 Great Moments in Bottom Fishing:
TheFallen Angels Hallof Fame 29
Chapter 4 BuyCATS (Cheap and Timely Securities),
Avoid Dogs 35
Chapter 5 Cycles and Wall Street's Wheel of Fortune 45
Chapter 6 Who Wants to Bea Billionaire? 57
Chapter 7 Time Arbitrage, The Rational Investor's Ally 69
Chapter 8 The Pilot's Checklist ForSafe and Effective
Investing 77
vii