Blue-chip-stocks

Over the past decade, Howard Schilit has built a reputation as a financial statement bloodhound through his organization, Center for Financial Research and Analysis (CFRA). His focus is on rooting out elements of public company financial reports that lessen the quality of reported earnings. However, Blue Chips & Hot Tips, his first of two books, has a different focus, though it relies on many of the same principles. In it, Schilit and his brother methodically walk you through the evaluation of young companies (upcoming or recent IPOs), with the objective of identifying big winners early and avoiding companies that will not pan out. What was great for me when I read this book back in 1994 is that I learned how to break down a prospectus, which can appear overwhelming at first glance. Everything is covered, including analyzing product superiority and competition, analyzing management, directors and the auditors, and digging into the financial statements in order to assess the true health of the company. Schilit is a CPA and a detail freak so the most helpful chapters focused on the financials and the deal terms. I should acknowledge that some of his suggestions have grown to be too idealistic in an age where many companies are simply brought public too early. However, as we've seen over the past two years, applying the principles of this book would have kept you away from practically all of the blowups and bankruptcies that occurred in the aftermath of the dotcom frenzy. I should also note that the later chapters analyze several stocks, weeding out the promising ones from the less promising. Cisco Systems (CSCO) was one of four stocks that made the cut (quite prescient back in 1992). Clearly, these will be outdated recommendations, though they are still instructive examples of his approach. Bottom line - I highly recommend this book for any investor who wants to move beyond the Peter Lynch "buy what you know and hang on to it" approach. Eight years later, I am still utilizing tools introduced to me by this book.

Potential readers of this book should look at the number of used books available for sale. 22 COPIES!!! If that doesn't tell you something I'm not sure what would. At some point in the near future, I expect Mr. Lanyi will have to pay people to read his book. My advice, don't take the bait; life is too short and time is too valuable. "Confessions" contains little of value for either the novice or experienced investor. One last comment to the guy trying to sell an autographed copy for over $20 - you're dreaming. An autographed copy is probably worth less than a normal copy.

Look up the word meretricious in the dictionary - you'll probably see the cover of this book. This is the worst type of non-fiction- boring to read, misleading and worst of all dangerous if the "advice" within is followed. Is anyone else suspicious of the sample "client portfolios" provided? Hmmmm....a client has over a dozen positions in the portfolio and guess what - all big winners, no losers. Anyone who has spent a minimal amount of time studying the market knows this is highly unrealistic. Lanyi must think his readers are either suckers or fools. I can only assume he has something on the publisher and/or editor to get them to back this vanity project. After reading Confessions, I wondered why Amazon does not offer the option of giving a book no stars. If ever there was a book that deserved it - Confessions of a Stockbroker is it.

After reading this book I can honestly say that I didn't walk away with one valuable information other then not wasting my time reading a sequel to Confession of a Stock Broker. A waste of time and a waste of money would be the best way to describe this book. If you're looking to read a book which wont provide you with any benefits then this is it.