5 comments about Confessions of a Wall Street Analyst: A True Story of Inside Information and Corruption in the Stock Market.

1. I found this book to be more of a dairy than confessional. Don't get me wrong I enjoyed it but the theme was set early on, "My colleagues aren't playing fair and I'm still going to take the money."
   
   Because the author is documenting real events, it was refreshing to get an insiders perspective on WorldCom's lifecycle. In particular, as a CNBC viewer, the talking heads are always tossing around ... "former head of Citigroup ..." and several of these players show up in the book. So that was a value added aspect that I enjoyed.
   
   The thing I found funny was that the last page of the book pretty much sums it up. I did pick up a few trading notes but things were drawn out in the later half of the book. Enjoy.



2. I was not quite sure how to review this and remain objective. I have always been a big fan of Wall Street lore, and the recent bubble has given me tons of material from its many participants.
   
   This novel was no different, it told the story of a man who was, among many others, in the middle of all the pandemonium of a boom and bust. I like this kind of stuff though, so for myself, I would rate this book a 4.5 star.
   
   The author goes very far to get all of his numerical facts right, and I enjoyed knowing the ins and outs of every deal. But I could see how someone, just wanting to read a biography of someone on Wall Street, may get a big bogged down in all the numbers and intricate situations. Even I towards the end was starting to wonder how many more pages I would have to read through. The author doesn't put much of a "seat of your chair" spin on any of the trials either(even though we all know what happens), which may be another down point for someone looking to find excitement in these Confessions.
   
   All in all I would say a good book, I enjoyed it and learned quite a bit more about the life of an analyst. I also thought that his section at the end of the book, going over the changes made and their effectiveness was very well done. A great read if you are interested in this kind of stuff.



3. It ain't me, man, it ain't me. In "Confessions of a Wall St. Analyst" Daniel Reingold takes an estimable stab at hand washing in his expose of the telecomm investment mania of the late 1990s. Beginning his career as a sell side equity analyst in 1994, a pivotal moment for the heretofore sleepy telelcommunications industry, Reingold paints himself as a guileless, almost idealistic intellectual in the academic mode, transported by fate into the vicious and mendacious cauldron of greed known as Wall St.
   
   Propelled by mounting ambition and, as he admits with sheepish reluctance during the book's progression, dazzled by the obscene riches flowing around the accounts of the bankers and analysts in his circle, Reingold tells a story of seduction. His rivalry with Jack Grubman, a fellow top telecomm analyst with a penchant for vulgarity that Reingold holds in contempt, provides a certain good vs. evil axis to the story as the decade progresses to its ultimate sorry conclusion. Report after report is issued extolling the virtues of AT+T, Quest, U.S. West, and most worryingly, WorldCom, as old economy stalwarts scramble to gobble up internet start ups and deals start tumbling over each other with a frantic pace that blots out any sense of rationality in this ostensibly dispassionate game.
   
   The grand irony here is that for all of Reingold's fastidious number crunching and intellectual discipline, and all of Grubman's insider's power and swagger, neither of them added anything real to the far-fetched dialog going on. Emotion was the only force that drove the madness. As the stakes grew ever higher, companies simply stopped telling the truth in their financial statements, using accounting loopholes to cover up monstrous gaps in revenues and profits, and the analysts were none the wiser, or at least none the braver. All they did during this pathetic process was enable the culprits and enrich themselves. Dan Reingold was standing nose high in this muck, despite his protestations of shock.
   
   So while he decries the system he came to abhor, he lets himself off the hook with relative ease. Here's a man with exceptional talents who saw an opportunity, and for that he can't be blamed. But the tone of the book is galling, when one considers that manias like the telecomm frenzy have been part of history since man began trading, and that people like Dan Reingold are paid handsomely to protect the investment public. In this he failed, and should count himself lucky not to have met with criminal prosecution, but only with generalized, and temporary, disgrace.
   
   His writing is adequate, and does provide a window into the psychology of market mania. It might be hard for any mortal to resist the cookie jar passed under Reingold's nose. But in its naive tone the book exposes a major flaw. This isn't the first time this has happened, Mr. Reingold, and it won't be the last. You and your ilk are part of a time worn and pernicious tradition. We've seen all of you, and many others in decades and centuries past, stripped naked before us, and the sight is never pretty. Thanks for the book--let the public take it for exactly what it's worth.



4. The "What Elliot Spitzer Never Told You" heading on the cover is a bit misleading. Sure, Reingold's Confessions of a Wall Street Analyst reveals the corrupt Wall Street of that era, but I'd hardly consider it a 'tell-all' book, which is exactly what makes it good.
   The main problem I have with this book is that Dan Reingold writes Confessions with a few biases and a few principles upon which he builds his perceptions of events. He portrays himself as 'holier than thou' while others as immoral. He fails to point out that the "corrupt" analysts and bankers were simply playing the game. With that in mind, he is in fact somewhat objective. He's on the sidelines of the unethical insider game being played on Wall Street. Because of that, he writes a memoir more detached from the events he tries to highlight. Confessions is devoid of biases on that level.
   Another issue is the fact that Confessions is a little extensive for the content. Reingold, at times, focuses far too much on his day to day problems as an analyst and less on the corruption on Wall Street. Nonetheless, since it is so well written, I can live with the added length.
   Confessions is very well written. Reingold incorporates statistics & prices that normally would slow a book like this down in a smooth fashion. Confessions reads well. More like a typical memoir than other Wall Street books.
   Four stars: too long, too unobjective at points but a very well written and interesting memoir on Wall Street.



5. This book was a great insight in to the world of telecom analysts who worked on Wall Street during the late 90s to early millenium years. The years of the dot com boom and bust. I was active in IT during those years and remember well when it came out that Worldcom had falsified it's earnings. Reading about it from an inside angle gave me a deeper appreciation of what was going on then and I am grateful for it.
   
   Dan Reingold writes a compelling account of those times and if you are interested in learning a little of how Wall Street was during that time I highly recommmend reading it.
   
   As for a learning experience, I took away some information for myself, little tid bits that author learned along the way that will no doubt benefit me in the future. His end statement in the book says it all. I cannot rate this 5 stars because the read, while interesting, did not hold me and it took a longer then usual period of time to finish the book. Still, I feel it was worth the read and recommend it.

5 comments about Options Trading for the Conservative Investor: Increasing Profits Without Increasing Your Risk (Financial Times Prentice Hall Books).

1. Overall lots of information, but Thomsett does not fully explain the risks involved with selling covered calls. Essentially all of his model portfolio would have been in the money after selling the Leaps wtih in weeks. Rolling would not be practical as one could only roll up for the 27 month Leaps. Selling a Pepsico 27 mo. Leap at 50 with a current price (in Sept of '02) of 48.48 netted a $4.30 premium. The stock hit $50 within a month or so and was at about $63 by expiration. The only way out would be to roll up (at an ever increasing cost), hold for two years, or buy back the call. For the average investor (including myself) seems a bit complicated. If after selling a call, the price falls, the risk is even greater. One would need to close out the call by purchasing it back before selling the shares or risk having a naked call. The stradles described later in the book may reduce risk but for most trading accounts managing margin is not for the faint of heart. Definitely read this book with a large grain of salt and thourghly understand the risks associated with such options trading.



2. Great book if you are considering doing options in your IRA or Roth. Author is very straight forward in pointing out pit falls with a number of option stradegies that could get one into trouble and on the flip side those that work that will build your portfolio over time. I also liked that the author spent some time on tax implications of Options that other authors never speak about. Author could have spent some time on how one searches for stocks that fit the conservative option stradegey, i.e. how to use filters and screeners in various web sites.



3. 
   The ratio of talk to concrete examples is 85% to 15%. I like straight to the point books, that can and should reinforce important points but keep the fluff to a minimum...



4. As an investor I used to take investing with options as more of a speculative strategy, after going through this book, my view about investing with options is changed. Now I am convinced that in some situations, investing with options may yield better result then stocks.
   One negative about the book; is repetition of the concepts, I would not complain much since that repetition clear my understanding of the new concepts.



5. The book presents valid ideas but is so poorly editited I can only give it two stars. It is full of errors and some of the assumptions in option pricing would never exist. Did the author even re-read what he wrote? I would not consider myself an "expert" but I have read and studied stacks of books on the subject and traded options for years. I also utilize his strategy for my portfolio.
   
   Having said all that I would still recomend this book simply for the validity of the strategies presented, but only if you already have a good knowledge of options investing so you can identify the mistakes.
   
   This book is recomended by many other authors of options related books. They could not have actually read the book or they would never have endorsed it. And the last point makes it hard to believe any further recomendations they would make on other authors.
   
   Jim

4 comments about The Complete Idiot's Guide to Buying and Selling a Home, 5th Edition (Complete Idiot's Guide to).

1. I got this book because my wife and I are getting ready to buy our first home and I wanted a book to guide me, and thus prevent me from making any major mistakes and to ensure I knew what was going on each step of the way. I read the entire section on buying a house (5/6 of the book) and even half of the section on selling a house just to see the other side of things (the remaining 1/6 of the book). I personally found the book gave just enough details to be frustrating.
   
   The book will go over all the available options, but won't explore them in depth enough to help you make the right decision. For example, the book will tell you to contact multiple lenders and evaluate all the costs involved (the loan fees and if there are pre-pay penalties, not just the interest rate), but won't tell you how to really decide which loan to pick. The book will tell you that you can negotiate for some of the fees you have to pay with a mortgage to be waived by the lender or for some of the fees to be paid by the seller, but won't tell you how to spot these fees from the true, non-negotiable fees. There's a discussion of choosing the different types of homes (e.g. condo, townhouse or traditional home), but no discussion of the economic advantages of one over the other. I've heard townhouses appreciate faster, but I don't know if this is just an old-wives tale of if there is some truth to it. I still don't. Furthermore, the authors do nothing to predict future market trends, which is partly understandable since this is so difficult, but they don't even take a stab at it and the book is very current (2006).
   
   Basically, the authors do a great job reviewing all of your options, but they don't advise you about what the *best* option would be for you. Maybe that is impossible because everyone's situation is totally different, but I'd like to see some situation specific direct advice, even if it resulted in some of the book being useless to me because it wasn't detailing my situation. Everyone's situation may be different but there aren't THAT many different situations (just starting out/family in apt moving to first house/family upgrading house/family downsizing house at retirement or because of unfortunate financial circumstances - that covers 95% of people). This would take more pages but there are pages to spare and that's my biggest gripe.
   
   The book is organized by the steps in home buying (i.e. looking for a home/making an offer/obtaining financing/closing) but if you actually sit down and read it straight through like I did, you'll end up reading the same things over and over again. This makes the book better if you just want to read the chapter you're interested in because the chapters stand up on their own, but make it more frustrating if you read it front to back (you'll constantly be saying "yeah, I know, you told me that already, almost verbatim"). Not rehashing things would also free up pages to explore the nitty gritty in greater detail. I even found situations where full page tables were in the book twice in two seperate chapters! Completely unchanged, just printed twice when the authors were once again rehashing things they'd already covered!
   
   In conclusion, I would have rather had concrete advice rather then the overview given here (although I think a better edited book could have had both in the same amount of space). The only other book I read that was even close to this was Suze Orman for the Young, Fabulous and Broke. That book gave very concrete advice and told you exactly what was the best things you could be doing and gave you a priority order to do them (401K then credit card debt then house down payment then Roth IRA). No concrete advice here. The book often passes off giving advice with the disclaimer "talk to your agent." That's good advice, but then why'd I get this book in the first place? Furthermore, I think to give concrete advice you have to really know your topic and I'm not sure the author's understand housing the way Orman understands personal finance.
   
   I've been harsh so far, because that's what stands out to me, but I should say this book isn't a total waste of time, and this review has disproportinately focussed on the negatives. Bottom line, I just don't think there's much info here that you can't get for free somewhere else, like Yahoo Real Estate guides. In addition, online you can plug all your own numbers (like salary and debt burden) right into the online calculators (to tell you the maximum mortgage payment you can afford). So unless you really want the info packaged in book form I wouldn't buy this.
   
   Other minor nit-picks:
   
   1. The first part of the book is useless fluff. It covers stuff like "do you want 3 bedrooms or more" and "do you want a fireplace." I suppose it should be expected, but for me it wasn't necessary. That parts easy. Tell me how to get the best mortgage! Tell me how to get the best price!
   
   2. All of the examples are from Indiana which is where the authors must be from. The authors would often say things like "this is how it's done in Indiana but it might be different in your state so you should check." I brought the book for you to tell me! They should include an appendix for these things telling you how it is for all 50 states instead of saying the sames things 3 times to get the page count up. Furthermore whenever they get into these issues (usually legal issues, such as how much information the seller is required to disclose to potential buyers) they don't even tell you how to find out if you were sufficiently motivated to investigate the matter yourself.



2. Though some of the information is general, this book covers about anything you'd need to know about buying or selling a home. And the information in this revised 5th edition is very much up-to-date. You can't beat it for making the world of Real Estate easy to understand. Hence, "Idiot's" Guide, and when it comes to Real Estate, that definitely includes me.



3. This one is really for the first time buyer. Easy to read and understand. I checked out the home buying for dummies from the library and was a little overwhelmed. The idiot's guide has a better lay out and is a good primer.



4. I'm reading this book so that I can purchase my first home. This book takes you through all the steps and is a no-nonsense guide.

5 comments about The Number: How the Drive for Quarterly Earnings Corrupted Wall Street and Corporate America.

1. Mr. Berenson takes a very interesting approach to explaining the rise of the 90s bubble economy. The book opens with a wonderfully apt quote from Upton Sinclair: "It is difficult to get a man to understand something when his salary depends on his not understanding it." The drive for Earnings Per Share (EPS) by analysts and investors guided by them, according to the author, leads them astray because the number is inherently imprecise. Earnings are stated by the company as an exact figure and EPS is simply that number divided by the number of outstanding shares of common stock.

   However, earnings depend a great deal on the methods of accounting used by the firm. In the 90s we saw a rise in very aggressive accounting. Any system of rules that is intended to be applied generally over a wide range differing conditions is going to have gaps and unintended effects that distort the intention of the rules. General rules rely upon the good will and integrity of the participants to keep the intention or spirit of the rules in tact in order for the rules to have any real meaning in application. In sports we also have referees to keep the game fair, but both teams still have to intend to follow the rules completely. No game could be played if the participants tried to push every rule to an extreme interpretation. Aggressive accounting uses extreme interpretations of the Generally Accepted Accounting Principles (GAAP) to present as favorable earnings number as possible. This results in a higher (and therefore more pleasing) EPS number.

   Analysts started giving forecasts of coming EPS reports for firms and those that met or slightly exceeded that forecast were rewarded with higher share prices because investors competed for their shares. Those that missed the forecast by even a penny per share were punished as investors abandoned their stock. Mr. Berenson demonstrates that many companies had reserves and other accounting tricks to make sure their EPS forecasts were always met. However, as companies grow this becomes harder to do. And for companies such as Tyco, Enron, Adelphia, and even the mighty General Electric, it finally became impossible. The most aggressive companies had presented such a distorted picture of reality that they collapsed. Those that were still within shouting distance of reality remained solvent, but still suffered a significant depression in their stock price.

   Since the EPS is inherently inexact it seems strange that the markets would react so strongly to that single measure. Mr. Berenson calls the number a lie. I think he does that for rhetorical effect and one time he does admit it is a white lie. I think he has a very strong point for those companies using aggressive interpretations of GAAP. The author also provides a history of the SEC and calls for stronger enforcement powers and the staff to provide that enforcement. While there is certainly a good case to have an effective SEC with sufficient resources (there will be a debate on what this level is), Mr. Berenson has more faith in regulation than I do.

   Even if I fully concede his point and support an SEC of enormous size, it still could not provide the necessary enforcement to keep companies in line if the market keeps rewarding companies for fudging the numbers. The market will provide what people want to buy even if they want to buy lies. I agree with Mr. Berenson that INVESTORS need to become better educated and make more demands of the management of the companies in which they invest. Investors, by NOT investing in companies who use very aggressive accounting, could affect the way finances are reported than any regulatory body.

   Not every company can be a growth company. Heck, even Microsoft isn't a Microsoft anymore. Investors have to demand that financial statements actually present a real picture of the financial state of the firm rather then providing a manufactured dream of ever expanding growth. One of the strengths of this book is the compelling evidence Mr. Berenson provides of management spinning these euphoric visions just long enough to cash out and then let the bad news (read reality) come to light on someone else's watch.

   This is a fine book. I think that anyone who has investments in public companies ought to read it and better educated themselves on the realities of the equities marketplace. I think Mr. Berenson's recommendations for public policy are measured and good for debate even if I don't personally agree with all of them. There are a few minor quibbles I have with some of his explanations, but they don't affect my recommendation.

   The book has a couple of short appendices to help the reader understand the accounting issues involved. There are helpful notes for sources and an index.




2. New York Times business reporter Alex Berenson has written a book that every investor should read. "The Number" traces the history of Wall Street trends, bubbles, busts, and the accounting fashions that accompanied them from the 1920s to the present day. He explains how the cult of The Number was born, making quarterly earnings reports the last word on any company's health, and how this facilitated the chicanery at Enron, Tyco, and the scandalously large paydays for incompetent corporate executives that have made headlines across the nation in recent years. "The Number"'s primary focus is actually on the evolution of accounting practices over the past 80 years. Berenson asserts that a disintegration of standards and an increase in conflicts of interest in the accounting profession prevent potential and current shareholders from understanding any company's health or its stock's true value. In other words, accounting slight of hand is such that it would take a detective to figure out if a company is making money or losing it. In explaining how and why, "The Number" gives us a fascinating, very readable history of the numbers and the people behind the trends since this nation first went crazy over the stock market in the 1920s. Mr. Berenson definitely has a viewpoint. He is in favor of stricter regulation for the accounting industry, perhaps more than is necessary or practical. But he makes some good points. And "The Number"'s chronicle of how things are on Wall Street and how they got that way is invaluable for any investor. Alex Berenson's writing is interesting, easy for anyone to understand, and his insights are essential to understanding what quarterly earnings reports do and don't mean, whether they be for big corporations that are the backbone of our economy, or little ones that may make or break your nest egg.



3. Concise and crisply written. Shows in a way how the 1990s were an inevitable outcome of prior history



4. A book about accounting written by a nonaccountant. A waste of your time and money. My copy went into the trash.



5. Alex Berenson has done the public a huge public service with this book. He clearly and logically describes serious problems with the US Stock markets, based on corporate avarice, greed and cowardly, dishonest politicians. His sections on the creation then the gutting of the SEC are perceptive and insightful. His overview of the decline of corporate accounting standards, led by the big US accounting firms, including, of course Arthur Anderson give a clear picture of the problems and what needs to be done.
   We need transparent and honest markets. We don't have them.
   A great book for experienced investors and for novices.

5 comments about Investing Without Fear: Protect Your Wealth in all Markets and Transform Crash Losses into Crash Profits.

1. This arrogant self-promoter acts like he's right and everyone else is wrong. He's be justified in acting that way if he were right. But he's wrong at least as often. He tries to scare people into buying his books, his newsletter, and (worst of all) his high-priced "trading services". He called for a real estate crash in 2003, a bond crash in 2004, and he's called for a stock crash every year for the past decade.



2. Go hide in a cave, put all your money in US government bills, bonds, and hord gold and wait for the financial nuclear winter to clear up. There..., now you don't need to buy this book.
   This book originally came out at about March 2003, at the end of the recent bear market, and was titled "Crash Profits..." at that time.
   The whole financial world did not end and the book was retitled to "Investing Without Fear...." so that more copies can be sold.
   Weiss is like a broken clock, always predicting that one thing or another is about to crash. He has been wrong so often. Even a broken clock is right twice in any given 24 hour period.



3. Given the way the economy is going, this book is a must read. There is a possibility that there will be a stock market crash in the near future: given the unfolding of the subprime mortgage crisis and untold numbers of foreclosures; banks that dabbled in hedge funds and subprime mortgages beginning to feel the pinch; the dollar spiralling downward; and the price of oil skyrocketing. Somewhere in all of this, one gets a distinct feeling of instability, and that is where Weiss's book comes in.
   
   His knowledge of the investing environment is refreshing and at the same time disturbing. He equips the average investor with knowledge that will help him/her in the coming difficult times. This is not a light read, yet the way he weaves story lines through the book, it places the reader comfortably into the investing environment. He gives worst-case scenarios and asks hard questions that makes the reader think. He also reveals astute insight and provides solutions to problems that help the reader feel equipped to tackle the upcoming turmoil in our economy.
   
   The most valuable parts of the book (I think) are
   where he mentions that he rates bank and brokerage firms and includes the websites. I felt as if I was reading the consumer report for banks! We actually visited a library and looked up Weiss's bank ratings books there. They rate banks on a quarterly basis, and include a thorough list of banks in every state, their rating and safety (some banks even get A+). We checked out the banks with the higher ratings in our state.
   
   This book provides peace of mind to the average investor trying to save and invest for the future when the economy looks dismally bleak.



4. This book is a must read for veteran or new investors. It tells a lot about the markets and how they operate. It warns about improper practices of some stock brokers. Included is advice on better stock trading.



5. This book has a great deal of valuable advice and Martin Weiss is an extremely reliable expert. HOWEVER -- This is the EXACT SAME book as his previously published "Crash Profits." They simply changed the title! I can find absolutely no updated or new information in this one. There is a mention of this on the back cover but you normally only get to see that until you've bought the book.
   
   I really hate when publisher's do this!

5 comments about An Introduction to High-Frequency Finance.

1. This one of the few books on high frequency finance is a most welcome to the literature. The book is useful not only for people who are new to the subject but also for researchers in the field since it is a most uniform treatment of many topics. From adaptive data cleaning (chapter 4) to intraday and weekly seasonality (chapter 6) and real time trading models (chapter 11), it covers a broad range of topics specific to high frequency financial time series analysis. Chapters on volatility modeling (Chapter 8), forecasting (chapter 9) and correlation and multivariate risk (chapter 10) are enlightening especially for risk exposure analysis and risk management purposes. Finally, the the extensive bibliography is a precious source for those who would like to explore certain topics in detail. I highly recommend it for practitioners as well as researchers in the field.



2. The book covers a wide range of topics related to high-frequency data in Finance. There is a very detailed approach to tackle a huge amount of data and to deal with its based stylized facts. The book triggers the reader's desire to update his knowledge in the field of finance.



3. Michel Dacorogna and the team at the former Olsen & Associates are well-known experts in the field of foreign exchange rate data analysis, and their book provides us with a vast, useful source of information. Unfortunately for students and other beginners, the book is written like a compilation of papers and review articles, the opposite of pedagogical, and with an awful choice of 'computerese' notation (MA(t,n)=sum(EMA(t',k)... etc) that makes Boudhaud-Potters look easy in comparison. More to the point, even their noncomputerese notation is difficult to follow. I hope for a very different second edition written pedagogically for students of this growing and important field. On the positive side, data analyses are performed using logarithmic returns, not price increments. Workers in the field who consult this text will find it helpful.



4. Many type of error the book list are frequently occur in FX data.
   This book give good guide on how to filter them.



5. The book gives an indepth statistical modelling of important financial events, that have time dependency. It is suitable for the financial analyst who wants a semi-empirical approach.
   
   For some quantities, like foreign exchange data, there is a comparison between fully empirical results and various theoretical models. What is investigated are such behaviours like scaling laws, for the absolute returns as a function of frequency. Here, it has been empirically observed that scalings do exist for FX rates.
   
   Whenever possible, the book gives rigorous results, often encapsulated in theorems relating to distributions of independently distributed random variables. The reader should have a background in statistics, with the equivalent of several years of undergraduate courses.

5 comments about PREFERRED STOCK INVESTING.

1. I've purchased three copies of this book: first one for me, and then after I started following the CDx3 method, one for my financial advisor, and one for my Dad. My copy is highlighted and marked with Post-Its because I don't remember everything from one reading and I like referring back from time to time. I set up my preferred stock investing system in a binder that I only need to pull off the shelf once or twice a month. For that small investment of time, I am very pleased with the results from following Doug's approach, so clearly spelled out in the book and made even easier with his subscription service doing all the legwork, so I can invest wisely while still having time for everything else. Contrary to some reviewers' remarks (did they actually read it cover to cover???), it's easy to successfully use the system described in this book without an interest rates crystal ball and even if you want to avoid issuers in certain industries, as part of a balanced investment plan. The book is educational, clear, fun, easy to read, and pays for itself many times over! Go for it!



2. This is a good book but reader needs to be careful about the risk
   involved in preferred stock investing. Half of the purchases made
   by the author in 2006 was not sold yet, and as of Apr 27, these shares
   are down on average about 15% in market value. Even if you count the
   9-10% in dividends that had been paid, you are probably still 5-6%
   underwater. One of the purchases is CFC-B, which went from 25 to 6
   at one point only to come back to 14 as of Apr 27. I am not sure
   if the average reader would have the stomach to withstand this kind
   of draw down. Since many preferred stocks were issued by finance
   companies, I suspect purchase made by the author prior to Aug 2007
   may suffer even heavier paper losses.
   
   Reader who buy this book with the expectation of getting 12% return
   with very little risk and retire needs to be realistic
   I have many stock trading systems that returned on avg of 30% for 6-7
   years in back testing before Aug 2007 but are down 40% since then.
   
   I would like to see more discussion on the risk of perferred stocks,
   how they would perform in bankrupcy and liquidation, etc. Readers
   also should not blindly follow rating agency's ratings.
   
   Thorburg mortgage's preferred stocks went public last year with a 10%
   coupon, and the price dropped from $25 all the way below $2 and has
   come back to over $4 recently. I heard that Pimco's Bill Gross
   bought some of those preferred below $2. It would be interesting to
   understand how he analyzed the risk of TMA's preferred and made the
   call.



3. I picked up Doug Le Du's book to learn about preferred stock investing...an area of the investing world that is not well understood, in my opinion, by the average individual investor. Specifically I was interested in diversifying my investments with instruments that provided income. The usual suspects were bonds and dividend paying stocks. Bonds have little chance for appreciation in my mind and many dividend-oriented mutual funds are heavily invested in financials which have been performing poorly recently.
   
   That leaves preferred stocks (and maybe some other items). I stumbled across Doug's website http://www.preferredstockinvesting.com which is designed to work in tandem with his book and was hooked on how he managed to write about preferreds in an entertaining way. And it was no surprise that the book was similar.
   
   The book is well written in concise, easily digestible chapters perfect for a quick read before bed. He covers not only the esoteric details of the myriad "types" of preferred stocks, but also how to mechanically trade them under various market conditions.
   
   Using his methods I was able to trade profitably quickly. For instance, I was able to research the nuances of a preferred stock of a financial company whose common was under fire for poor performing subprime loans. Based on his research tips using SEC filings I was able to determine what the proceeds of the sale were being used to fund, as well as insuring my dividend was "safe", or cumulative. The yield was also very attractive. The preferred was basically safe while the common was getting its dividend slashed right and left. Since then the financial crisis appears to be abating and the preferred has risen about 15% since then. Not a bad return, and much better than the common.
   
   Will you get rich trading preferreds? Probably not, but there is a place for these instruments in a well-diversified portfolio. If you want to learn quickly and thoroughly what a preferred stock is, what the characteristics of the most investable are, how to do your homework on an issue, and the mechanics of how to trade them...then this book is for you.



4. This is a great book for many reasons. Personally, I bought it mainly because it discussed preferred stocks (which there tends a great lack of information on). Throughout the book you will learn (in layman terms)what makes preferred stocks tick. The author discusses why companies issue them, why they call them, and when and how they are allowed to do so.
   
   Much to my suprise, once you understand this, you will be stunned to learn the predictable nature of preferred stocks. This is where the author describes his "income engine." Of course, as with any investing strategy, there are risks involved. The author seems to understand this better than anyone. Through a rigorous selection criteria (which he does for you!), he narrows down the hundreds of preferred stocks to ones that have the least risk. Furthermore, to reduce risk -- a key component of the "income engine," the author teaches you about diversifying your portfolio.
   
   This is not a get rich quick trading scheme, which I believe adds to its credibility. This is geared towards investors with a longer term horizon looking to generate some stable, consistent and predictable income. If that fits your profile, buy this book.



5. I have no hesitation in giving this book a 5 Star rating.
   
   This book is an invaluable resource to any active investor. This is an action oriented book and the author has gone to great pains to share his knowledge freely and openly with the readers. He has not assumed anything and his writing style packs a lot of punch, meaning and ensures that the reader remains engaged through all the chapters. The author clearly wishes to help his readers and to ensure that no questions remain unanswered.
   
   For those of us looking to augment our investment portfolio and add meaningful income, Doug leads the reader step by step through the entire process that covers investing in Preferred Stocks.
   
   For readers looking to add to their knowledge or looking to actively begin investing in Preferred stocks, they need go no further than reading through the book and establishing their plan of action based on the education provided by Doug.
   
   This is a must read book for those interested in establishing an investment portfolio in Preferred stocks. Preferred Stock Investing is great for IRA investors or as a much better alternative to bank Certificates of Deposit or bonds. The readers will find a lot here.

5 comments about Option Market Making: Trading and Risk Analysis for the Financial and Commodity Option Markets (Wiley Finance).

1. Just out of curiosity it may be worth skimming through its pages, but the way Mr Baird used to trade in the past (with sheets to get ur position from) is far away from how this is done today. Hence, do not surprise yourself if discussions such as smile delta and smile gamma do not come into play.



2. Baird's "Option Market Making" is the *other* essential options book that any serious practitioner should read. Whether you are buy-side or sell-side, or trading your own book, this work is fundamental and extends where Hull leaves off. In short, pricing models do not a bid-offer spread make, and Baird illuminates this dark world with the well-crafted sunshine of expertise, mathematical rigor, and experience. In addition, Baird's prose is clean, clear, readable and lean, without glossing over tough spots or ignoring extremes.
   
   Baird's 1993 "Option Market Making" while a bit dated, is becoming recognized as an enduring classic. Not because it is up-to-date with the latest smile dynamics from the research of Avellenada or Rebenato, but because it does what it does very well. Like a classic cookbook such as The Joy of Cooking, this work tells you how to make perfect pot roast, but not the latest slow braised chipolte-rubbed hand-aged hanger steak.
   
   Baird's "Option Market Making", indeed, is an economic anomaly, for it refutes an old chestnut: "those who can't do, teach." In the financial publishing world a book that makes or saves you money should not exist, since the expected return of taking the time and work for authorship is much lower than another economic activity (probably including flipping hamburgers). What motivated Baird? Who knows? But this is pure saved gold here.
   
   Option neophytes should not be misled: this is not a book of "secrets of" that will lead you to quick easy riches in the sometimes wild swings of delta and gamma in options markets. Rather, this is a sober, careful, useful book on the actual difficulty of making a market under uncertainty and rapidly changing information sets. This is a work for practitioners and professionals who want to survive and thrive, not "*just*drive!*" Cowboys and "feelings" punters look elsewhere to scratch your itch.
   
   Standout chapters include "Options Risk" which treats delta, gamma, lambda, theta, kappa/vega, rho, skew, and time spread risks in a clear, although direct and quick, manner. "Position Risk Profiles" covers the meat and potatoes of an options market maker: what is in your book at any one time. This chapter mercifully is not in a "panic mode" tone, but rather carefully and soberly guides you through essentials of risk determination for your entire book.
   
   The chapter "On Strategy" will be helpful for punters and those who have committed some capital to being a market maker, covering delta neutrality (yawn!), but more importantly time spreading, expiration, Fences, and high volatility periods (yeah!). It also treats broker order flow and open interest analysis in a sober way ("saucer bottom" and "reverse hook" technical analysis copter beanies need not apply).
   
   The chapter "Market Making Tactics" is perhaps the most aggressive, but it also patiently spells out what option market makers do on a daily basis. The entry on "common mistakes" alone is worth the price of this volume. Baird closes with a lighter "Observations from the Floor," which it behooves all to read nd revist upon occasion. Having worked in a pit myself, all I can say is "amen Brother, and again I say amen."



3. pretty outdated... the ratio of the added value of the book to the time spent to read it is far below than i expected..



4. Well written with a lot of new ideas and useful info.
   
   However, with the money I spent, I wish that I got more quantity than a mear newsletter. Having known then what I know now, would I still spend the cash on it? Definitely!



5. Anytime anyone is willing to credibly tell you what he does to make money over the long run with well defined low-risk strategies you should listen because casinos, banks, and insurance companies certainly do. The author implies a positive expectation to option trading and those who make a living doing it would agree. The book has a conversational read and has something for the novice to the successful option trader. Highlights are: Delta neutral trading, gamma scalping, the use of spreads to enter, lay off risk and adjust, and emphasizes long volatility trading. The title of the book has probably disuaded more traders from buying the book because it is equally benefical to those who are not option market makers.

5 comments about Ordinary People, Extraordinary Wealth: The 8 Secrets of How 5,000 Ordinary Americans Became Successful Investors--and How You Can Too.

1. I wish this book had been available when I first began investing! I could have avoided 90% of the (very costly) mistakes I made.
   
   Yes, the advice is simple. But that's the beauty of it.
   
   Don't switch your investments around too much. Don't pay too much attention to the financial media. These are the 2 tips I found the most helpful. I reacted out of fear and made emotional decisions. Very bad idea.
   
   I especially enjoyed the sections where Ric lets his clients speak for themselves.
   
   So, I highly recomment this book. Another, somewhat similar one I like is is "Eight Steps to Seven Figures" by Charles Carlson.



2. A lot of redunduncy. You don't miss anything if you skip "in their own words" pages.
   There should have been a mention of "retirement planning" on the title of this book. The book is mainly for 401K investments. Not a help for a reader who is after inspirational stories of "ordinary people with extraordinary wealth".



3. I highly recommend this book for those who are trying to figure out what they need in financial planning, when are they going to need it, and how to get there from here. Ric let his clients do the advising, the message is very powerful.



4. Some of the "secrets" in this book are good ideas, but not all. I disagree with the idea of not paying off your mortgage. (And I felt that way before the mortgage crisis) Unfortunately, that was the first secret in the book and it started me off with a bad impression.
   
   The book was based in interviews and research on a group of wealthy people. There are sections in the book that contain pieces of advice from those folks (best thing they ever did, worst mistake they ever made, etc) which provide some good ideas. However, many end up repeating the same things.
   
   Overall, it was an okay book but I have to admit I ended up skimming lots of it towards the end. I don't know that I came across anything really new to me (but then, I do read a lot of personal finance books). I'm also not certain that I agree with all the advice provided. My opinion is that The Millionaire Next Door offers better information. I'm glad I borrowed the book from the library instead of purchasing it.



5. I'm surprised at how many people have given this book a one star and said it's the worst book they've ever read. I've read hundreds of financial books over the years and this book by far is not the best I've ever read nor is it the worst. The information is very basic and rudimentary but the best "secret" is by following the recommendations in the book religiously you will become financially independent, over time. It won't happen over night but it will happen. The problem is everyone has their own definition of "extraordinary wealth". I consider myself middle class but I don't have any debt other then my mortgage and have the ability to pay cash for anything I need or want. But, I'm not wealthy. Other people may think I am. It's all in the mind.

5 comments about Income Investing Today: Safety & High Income Through Diversification.

1. If you're looking to become active in your own retirement saving, but are frightened by the volatility of the stock market, and put off by the low returns of the bond market, Richard Lehmann offers a sure fire alternative in Income Investing Today. Income Investing Today chronicles in great detail an alternative investment universe that provides the high returns of the stock market with the minimal risk of the bond market. New hybrid securities like preferred stock, convertible bonds and ETFs are his weapon of choice and you need only look at the track record to be convinced. Lehmann outlines a step-by-step plan of how to build wealth on your own without paying outrageous management fees or gambling away your nest egg on Wall Street. Simply put, Lemann shows you how to make big returns without the big risk, on your own. This book is certain to become the investment bible of baby boomers tired of paying pointless management fees and eager to become involved with their own investment portfolio or retirement savings. Lehmann, a Forbes columnist, puts his three decades as an authority on fixed income investment to good use and knocks one out the park. Income Investing Today is an invaluable tool to the independent investor with an eye on retirement savings.



2. The reader will find author Richard Lehmann witty and thorough as he discusses the key to building a steady, growth-orientated income portfolio. He states that in investing, "very little is highly predictable and nothing is certain." In the investment process both fear and greed are facts of life and Richard explains that both must be kept in check. Whether you're a buy and hold investor, total return investor, a desperate investor or a scared investor Richard's book on Income Investing will enlighten you and provide tools for action.
   
   He states, "My basic premise is that the key to building a steady, growth-orientated income portfolio is to diversify over a variety of securities that depend on a different drivers (ie., portfolios that are not vulnerable to any once specific economic factor such as interest rates." The reader will learn of many new investment products in the income investment market with acronyms to catch the investor's attention. Mr. Lehmann suggests many that are interesting to use for income and others to avoid. Years of experience are at the reader's fingertips as Richard leads the reader through both the new and more conventional income products.
   
   Unexpected and welcome gifts are Richards insights and discussion associated with retirement investment, managing tax in the fixed income portfolio, buying and selling securities and what to ask your broker when buying an income security. His discussion about default and bankruptcy are most informative and provides the investor with background not often seen in investment books. What to pay for a security and when to sell are questions of high concern to investors and Richard provides some insight to this problem.
   
   This book provides an informative look at some of the actions of the Federal Reserve Bank and the various credit rating services. For the non-accountant Mr. Lehmann with his CPA hat on discusses key financial statements that you need to understand.
   
   Income investment includes certain income stocks and mutual funds such as bond, Exchange Traded Funds and closed end funds. Mr. Lehmann addresses these securities in some detail and offers up some very experienced arguments of how they can be used in building an income investment portfolio.
   
   Certificate of Deposits are considered very low risk products, Richard suggests that is you have saved enough to build a monthly payout ladder of CD's and live comfortably that God had surely blessed you and you no longer need to read his book. Of course that would be a big mistake just think of what you will be missing.
   
   The reader will find his book entertaining and informative. It provides income investment strategy, product description, portfolio make up, brokerage discussion, managing risk and uncertainty and a super Glossary.
   
   A worthy text on the desk....for even the equity investor.
   
   Herbert Ridderbusch- Investor



3. In this low interest rate environment investors need to work harder to maintain a high level of income from their investments. Add to this that author Lehmann sees low interest rates for the "forseeable future". This means that an income portfolio needs to diversify across an expanding variety of financial instruments, maturities, and even credit (risk) quality to achieve its goal. The key here is to recognize that some income investments respond to "drivers" (viz. circumstances) other than interest rate moves which in turn insulates them from this traditional risk.
   
   It follows that the diversified income investor will consider some non-traditional or out of favor (relatively cheap) assets such as REITS (driven by real estate cycles), Canadian Energy Income Trusts (the demand for energy), dividend paying common stocks (affected by broad economic cycles), near investment grade junk bonds (discounted by fear but subject to credit upgrades), and beleaguered automotive bonds. Closed end funds also get the nod because they generate high income and can often be bought at a discount to their underlying values. Given that the retail investor is the focus of this book and that new CEFs are rolling-out monthly, I would have liked more discussion of their trading strategies and risks.
   
   Among the investments to avoid are unit investment trusts, collateralized mortgage obligations (CMOs), packaged equity hedges marketed under cutesy acronyms as Sequins, Elks, etc. and hedge funds ("rarely has so much money been entrusted to so few people with such limited talent"). Lehmann is decidedly ambivalent about mutual funds due to their internal costs, tax inefficiencies, and focus on short term performance. No surprise his preference is for individual securities which are also less sensitive to interest rate changes as they move their principal to date certain maturities.
   
   The serious do-it-yourself income investor will find some good ideas in these pages, but I question Equipment Trust Certificates as a retail investment. Good luck if you need to sell them. A section on Direct Access Notes is in intriguing, but again, I wonder about their liquidity. Lehmann is a strong proponent of preferred and convertible stocks, but there is a confusing amount of information on their structures. A discussion of the bankruptcy process, advice on when to sell your positions, and useful information that can be gleaned from prospectuses and financial statements might have gone to an Appendix with more direct focus on securities in the main text.



4. This book informs the reader/investor about a solid and reasonable approach to safe income investing. The examples and explanations are good (I will save your time by referring you to the other reviews for more detail). The author disappoints by advertising his investment letter. Nothing wrong with that if either the book or the investment letter were free of charge, but they are not.



5. The book does a great job of explaining income possibilities for those of us who have limited knowledge. Like a previous reviewer stated, I would have also liked more information on Closed End Funds and the structure of the book is a little fragmented but it is definitely readable and is a good introduction to his style. I have been an avid reader of his newsletter for four years and his recommendations are very well thought out. To my knowledge, it is the only publication that does this kind of work and it is the only proper way that I can think of to actualize the book. I am a very fearful investor and this style has worked very well for me. I have managed to set up an income stream of approximately 10% per year, I have made some nice gains at times, specially with the Canadian Trusts, and I have been able to recover from recommendations that have not worked out. The fluctuations in the securities that I have selected do not seem to have been more or less drastic than the market in general with the exception of the Closed End Funds. They do not seem to have done as well but the dividends have kept me in the game. Happy returns!