Book Review > The SmartMoney Stock Picker's Bible

The SmartMoney Stock Picker's Bible has been written by two authors who have been with the SmartMoney organisation for about ten years. SmartMoney is an American company which amongst many things produces a regular magazine of the same name, and this concentrates on analysis of the markets. This book therefore explains the techniques that are used to analyse companies and markets and suggests how one can put together a sensible diversified portfolio and regularly maintain it.
Although this is essentially a book covering the 'how to' with individual shares, it does discuss investing in Managed Funds (Mutual Funds) as a way of further diversification of the portfolio.
There is a very comprehensive worksheet that can be completed to enable the reader to allocate amounts to the various areas of cash, bonds, large caps etc and all of this taking one's age into consideration as an all important factor in designing a viable but individual portfolio.
The book has about 290 pages with plenty of graphs and tables for the reader to ponder over. However 100 of these pages are taken up by the appendix, the index and glossary. The latter is the fascinating one in that one now has a complete reference point for all of the jargon used in the financial media. Some of the terms are unusual but perhaps they are exclusively American and of course this book is very American.
The last chapter entitled "Lessons from the Pros" discusses how some of the more successful Fund Managers and investors - including Buffett - continue to beat the market, and although they don't all use the same techniques they share this characteristic of success.
One further and unusual aspect of the book is the introduction every so often of what is called a "sidebar". This is where the main thrust of the chapter is interrupted and a particular but associated aspect is fully explored. These are marked with heavy black verticals on the edges of the pages concerned. The general chapter information is then continued to its completion.
The price of the book at $52.95 may inhibit some. However what should be remembered is that it is well presented in hard cover form and that SmartMoney is an offshoot of the Wall Street Journal. I believe this is an excellent book that is designed and suitable for the average investor who has interest in organising a portfolio using fundamental analysis.