Book Review: Taming the Money Sharks by Philip Cheng

This book, Taming the Money Sharks: 8 Super-Easy Stock Investment Maxims, Philip emphasizes on the essential of evaluating a company's fundamental before putting in our hard-earned money.  He introduces a total of 5 ratios and these ratios are mainly on evaluating a company's earning power, credit position as well as cash flow to meet its obligations.

I particularly like the Philip way on stock selection.  He highlights that, instead of seeking good counters here and there, our investment result could be better by focusing on a single sector or industry that we are familiar with.  This is beacuse we could make timely decision as we know the industry or sector well.  Subsequently, seek for the top three companies within the said industry or sector and evaluate their financial position, strengths and weaknesses.  When evaluating a company's financial fundamental, we should also observe how company performed during different market condition among its competitors.

Philip also urge us to learn how to immuse from market noise as these noises will confuse us which might not lead us to a good ending.  Therefore, we should learn and enhance our understanding on the subject matter in order to avoid being misled by these noises.

In his book, he also introduces a few technical indicators to detest the buy and sell timing.

To me, I like the investment concept of this book conveyed.  As for how to accomplish this concept is very subject to readers perception and understanding.  Each stock investors are unique.  Therefore, it is just impossible to have one method for all.  I have my stock investment mechanism and it is giving me impressive return.  Yes, my method involves company financial fundamental evaluation to seek for my STARS and using a few effective technical indicators to spot the buying and selling opportunities.  I am not saying Philips recommendation is not workable but I believe my method serve me better.  Therefore, there is no harm to have other point of view if it is better and you could fine tune your method to enhace your chance of winning.

Good luck.