Description:

Stocks can be the perfect vehicle for your investment journey—if you know how to pick them. With Morningstar’s unparalleled guidance you can get the story behind the numbers and learn how to invest in stocks with care and confidence.
In The Five Rules for Successful Stock Investing, Pat Dorsey, Director of Stock Analysis for Morningstar, Inc., helps today’s investors learn from the mistakes of the past in order to lay a solid foundation for future success. According to Mr. Dorsey, "Investment success depends on personal discipline, not on whether the crowd agrees or disagrees with you." In a highly accessible and down-to-earth style, Dorsey helps even novice investors understand how to evaluate companies and achieve success by buying stocks at a discount of their true worth.
Reading The Five Rules for Successful Stock Investing is like joining a community of fellow investors who want to better understand how stocks operate, avoid the common pitfalls of investing, and build strong stock portfolios they can be confident in. Dorsey and his team of stock analysts will open investors’ eyes to a wealth of investment opportunities that exist regardless of market conditions, as they learn:
How to develop a feel for what makes a company profitable
How to find great companies with a competitive advantage
How to make sure a company’s management team is on their side
How to recognize red flags that can cause blow-ups in a portfolio
How to apply proven valuation principles to improve results
And how to apply a 10-Minute Test to any stock in order to determine if it’s worth investigating in more detail
A complete investment guide for people who are serious about mastering stock strategies, The Five Rules for Successful Stock Investing outlines the rigorous process through which Morningstar evaluates stocks, providing readers with tried-and-true tools for selecting stocks that will make promising long-term investments—and perhaps more important—avoiding those that won’t.
In today’s economic climate, The Five Rules for Successful Stock Investing has something to offer every investor. Seasoned investors will welcome the kind of sound, reliable advice that can help them avoid the mistakes of the past, while novice investors will find the kind of "on-ramp" introduction they need to get moving along the road to better investment results.
The Five Rules for Successful Stock Investing
"By resisting both the popular tendency to use gimmicks that oversimplify securities analysis and the academic tendency to use jargon that obfuscates common sense, Pat Dorsey has written a substantial and useful book. His methodology is sound, his examples clear and his approach timeless."
—Christopher C. Davis
Portfolio Manager and Chairman
Davis Advisors
OVER the years, people from around the world have turned to Morningstar for strong, independent, and reliable advice. The Five Rules for Successful Stock Investing provides the kind of savvy financial guidance only a company like Morningstar could offer. Based on the philosophy that "investing should be fun, but not a game," this comprehensive guide will put even the most cautious investors back on the right track by helping them pick the right stocks, find great companies, and understand the driving forces behind different industries—without paying too much for their investments.
Written by Morningstar’s Director of Stock Analysis, Pat Dorsey, The Five Rules for Successful Stock Investing includes unparalleled stock research and investment strategies covering a wide range of stock-related topics. Investors will profit from such tips as:
How to dig into a financial statement and find hidden gold . . . and deception
How to find great companies that will create shareholder wealth
How to analyze every corner of the market, from banks to health care
Informative and highly accessible, The Five Rules for Successful Stock Investing should be required reading for anyone looking for the right investment opportunities in today’s ever-changing market.

Content:

Introduction: Picking Great Stocks is Tough.

Chapter 1. Morningstar's Investment Philosophy.

Chapter 2. Seven Mistakes to Avoid.

Chapter 3. Economic Moats.

Chapter 4. The Language of Investing.

Chapter 5. Financial Statements Expained.

Chapter 6. Analyzing a Company: The Basics.

Chapter 7. Analyzing A Company: Management.

Chapter 8. Avoiding Financial Fakery.

Chapter 9. Valuation: The Basics.

Chapter 10. Valuation: Intrinsic Value.

Chapter 11. Putting It All Together.

Chapter 12. The 10-Minute Test.

Chapter 13. A Guided Tour of the Market.

Chapter 14. Health Care.

Chapter 15. Consumer Services.

Chapter 16. Business Services.

Chapter 17. Banks.

Chapter 18. Asset Management and Insurance.

Chapter 19. Software.

Chapter 20. Hardware.

Chapter 21. Media.

Chapter 22. Telecom.

Chapter 23. Consumer Goods.

Chapter 24. Industrial Materials.

Chapter 25. Energy.

Chapter 26. Utilities.