Time for another book review! Are you guys getting bored of these yet? My last book review was a bit "out there" for MDJ, but this one is back on track.
Today's review is on a book called "The Brainwashing of the American Investor: The Book that Wall Street does not Want You to Read." The author Steve Selengut contacted me a little while back to help spread the word on his new book. Lets see if the word will be good or not so good..
Who is Steve Salengut?
Mr. Salengut has been a Professional Investment Portfolio Manager since 1979. He is unaffiliated with any Brokerage Firrm – Separate Accounts Only, & No Open End Mutual Funds. He holds a BA Business and an MBA in Professional Management.
What are the main points made by the book?
- Wall Street does not have your best interests at heart. Most of the products offered by Wall Street is to line their own pockets.
- Income generated from your assets is more important than their market value.
- Buying quality stocks (that pay a dividend) at a discount and trading them for small profits is the key to great returns. The book shows you how to go about picking "quality" stocks.
- Mr. Salengut firmly believes in profit taking (opposite of buy and hold).
What I liked?
- I enjoy reading conspiracy theories and why mega corps make you live in fear so that they can make more money.
- I like the idea of contrarian investing along with the idea of investing for income instead of portfolio size.
- I appreciated the detailed spreadsheets included within the book creating your watch list and tracking your trading.
What I didn’t like?
- The author doesn't include his track record and proof that his strategy beats the market.
- The author promotes buying quality stocks as they are on a down trend, but what about the rule "Never try to catch a falling knife?" Why not wait until the stock starts to turn around from a correction before buying?
- This hardcover book is a great read for those interested in trading the markets. I enjoyed the fact that the book provides insights and stock trading strategies that are against the grain of wall street.
I've Completed My Million Dollar Journey. Let Me Guide You Through Yours!
Sign up below to get a copy of our free eBook: Can I Retire Yet?