The True Rules of the Stock Market Table of Contents

Preface

Acknowledgments

Introduction Picking Good Stocks Is Tough

Chapter 1 Five Principles for Successful Stock Market Investing

Do Your Homework

Looking for Companies with a Strong Competitive Advantage

Having a Margin of Safety

Holding for the Long Term

Knowing When to Sell

p>Investor's Checklist: Five Principles for Successful Stock Market Investing

Chapter 2 Seven Mistakes to Avoid

Illusory Goals

Believing This Time Is Different

Falling into a Preference for a Company's Products

Panicking When the Market Goes Down

Trying to Time the Market

Ignoring Valuations

Relying on Earnings Data for Analysis

Investor Checklist: Seven Mistakes to Avoid

Chapter 3: Competitive Advantage

Evaluating Profitability

Establishing a Competitive Advantage

How Long Will It Last

Industry Analysis

Investor Checklist: Competitive Advantage

Chapter 4: The Language of Investing

Fundamentals of Financial Statements

Where the Money Goes

Practical Application of Statements

Investor Checklist: The Language of Investing

Chapter 5 Financial Statements Explained

Balance Sheet

Income Statement

Statement of Cash Flows

Conclusion

Investor Checklist: Financial Statements Lecture

Chapter 6 Corporate Analysis - Foundations

Growth

Earnings

Financial Health

Short Scenario

Conclusion

Investor's Checklist: corporate analysis- -Foundations

Chapter 7 Corporate Analysis - Management

Compensation

Performance Rewards

Other Red Flags

Character

Corporate Operations

Investor's Checklist: corporate analysis -Management

Chapter 8 Uncovering Financial Disguise

Six Red Flags

Seven Other Flaws to Watch Closely

Investor Checklist: unraveling financial disguises

Chapter 9 Valuation - -The Basics

It's Hard to Invest Successfully When You Buy at Full Price at Valuation

It's Smarter to Use Multiple Valuation Methods

Say Yes to Earnings

The Investor's Checklist: Valuation - The Basics

The Investor's Checklist. -Foundations

Chapter 10 Valuation - Intrinsic Value

Cash Flows, Present Value, and Discount Rates

Calculating Present Value

Discount Rates

Calculating the Value of a Perpetual Annuity

Margin of Safety

Conclusion

Investor checklist: valuation - intrinsic value

Chapter 11 Combined use

AMD Corporation

Biomet Corporation

Conclusion

Chapter 12 The ten-minute test

Can a company pass a minimum quality test

Has the company been consistently earning operating profits

Can the company consistently generate cash flow from operations

Can it maintain a return on net assets of % or more and have reasonable

Can it have reasonable financial leverage

Is the growth in earnings concerted or erratic

How clean is the balance sheet

Does this company generate free cash flow

How much "other"

Has the number of shares outstanding increased significantly over the past few years

Beyond This Minute

Chapter 13: A Guide to Stock Markets

What Sectors to Watch Out For

Conclusion

Chapter 14 The Health Care Industry

Competitive Advantages of the Health Care Industry

Pharmaceutical Industry

Generic Drug Companies

Biotechnology Industry

Medical Device Companies

Medicare and Managed Care Organizations

Successful Medicare and Managed Care Organizations Characteristics

Investor Checklist: Healthcare Industry

Chapter 15 Consumer Services

Companies We See Every Day

Restaurants

Retail

Conclusion

Investor Checklist: Consumer Services Industry

Chapter 16 Business Services

Outside Sourcing Trends

Competitive Advantages in Business Services

Technology-Based Companies

Human-Based Companies

Solid-Asset-Based Companies

Investor Checklist: Business Services

CHAPTER SEVENTEVEN BANKING INDUSTRY

About the Risks

Sales Mobility

Banking's Competitive Advantage

The Characteristics of Successful Banks

Investor Checklist: Banking Industry

Chapter 18 Asset Management and Insurance

Asset Management Industry

Life Insurance Industry

Property and Casualty Insurance Industry

Investor Checklist: Asset Management and Insurance Industry

Chapter 19 Software Industry

Classification of the Software Industry

Competitive Advantages of the Software Industry

Software Industry Accounts

Danger Signs

The Characteristics of Successful Software Companies

What the Software Industry Doesn't Like

Conclusion

Investor Checklist: Software Industry

Chapter 20 Hardware Industry

What Drives the Hardware Industry

Characteristics of Hardware Industry Dynamics

Competitive Advantages of the Hardware Industry

Characteristics of Successful Hardware Companies

Investor's Checklist: Hardware Industry

Chapter 21: The Media Industry

How Media Companies Make Money

Competitive Advantages of the Media Industry<

Publishing Industry Profits

Broadcasting and Cable Industry

Entertainment Industry Investments

The Characteristics of Success in the Media Industry

Risks in the Media Industry

Investor Checklist: the Media Industry

Chapter 22 The Telecommunications Industry

Telecommunications Economics

Competitive Advantages of the Telecommunications Industry

Characteristics of Successful Telecommunications Companies

Conclusion

Investor Checklist: Telecommunications

Chapter 23 Consumer Lifestyle Industry

How Consumer Lifestyle Companies Make Money

Important Strategies for Growth

What Consumer Lifestyle Industries Don't Want

Consumer Lifestyle Competitive Advantages of Companies

The Characteristics of Successful Consumer Lifestyle Companies

Conclusion

Investor's Checklist: the Consumer Lifestyle Industry

Chapter 24: The Industrial Raw Materials and Equipment Industry

Cyclical Issues

The Competitive Advantages of Basic Materials Companies

Competitive Advantages of the Industrial Raw Materials and Equipment Industry

Characteristics of Successful Industrial Raw Materials and Equipment Companies

Danger Signs

Spotting Opportunities in the Industrial Raw Materials and Equipment Industry

Investors' Checklist: the Industrial Raw Materials and Equipment Industry

Chapter 25: The Energy Industry

From the Ground Up

Oil and Pipeline Transmission

Refineries< /p>

Consumers

Service Providers

The Impact of Oil Prices

Competitive Advantages of the Energy Sector

The Characteristics of Successful Energy Companies

Risks of the Energy Sector

Conclusion

Investor Checklist: the Energy Sector

CHAPTER 26 PUBLIC **** UTILITY INDUSTRY< /p>

The Electricity Industry

Regulation, Regulation, or Deregulation

Financial Characteristics of Public **** Utilities

The Characteristics of Successful Public **** Utilities

Risks in the Public **** Utilities Sector

Big Picture Considerations

Investor's Checklist: the Public **** Utility

Translated Postmortem

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