The Art of Speculation

by Philip L. Carret

Book Overview

Was ist der Unterschied zwischen Spekulation und Investition? Kennen Sie die 12 Gebote fur Spekulanten? Dies und eine Fulle weiterer Tips zu Marktbewegungen, Marktanalysen, Bilanzen und Vorhersagen verrat Ihnen dieses umfassende, aber leicht lesbare Buch.

• Format: Paperback
• Language: English
• ISBN: 0471181889
• ISBN13: 9780471181880
• Release Date: April 1997
• Publisher: Wiley
• Length: 384 Pages
• Weight: 1.05 lbs.
• Dimensions: 1.0" x 5.0" x 8.0"

Customer Reviews

Even though old, a good book for beginning investors

This book was written back in 1930 but there are still a lot of gems to be found, especially for beginning investors. What the author describes as speculation is really, today, just investing that is a little more risky than buying a stock for the dividends. He describes how to interpret financial statements, how the market works, and what to look for in industrial and railroad stocks. He also discusses trading in unlisted securities and investing in options. Sure the book is old, but it is still very valuable.

Classic

This is one of the books that I decided to re-read. There is a little something for everyone in this book. Technical analysis, fundamental analysis, investing and speculation. The thing that really strikes me about books like this that were written 70-80 years ago is how true they are today. Sure, when the author writes about railroads, you may have to replace that with optical equipment today, but the premise and outcomes are the same. If you want some perspective of what things were like in the 30s, with some practical application in the new century, this is a great choice.

An abbreviated Graham & Dodd

There is alot to this book that makes the reader think...the beginning chapters on what is speculation and what is gambling, I found invaluable. As a full time trader I needed someone to explain to me why I wasn't just a river boat gambler, or for that matter why all the Brokerage & Banks weren't either, and Mr Carret did beautifully, putting speculation in its proper place in the trade annals of all mankind.The bulk of the book gives one a short course in Graham & Dodd valuation & why the Internet stocks with no sales/no profits were bound to come to earth (sorry AMZN :-) Yes he talks about mining and railroads but don't they still exist? Or their counterparts? Railroads are transports; mining is r/d semis and electronics, energy & of course minig. The ideas are the same. Do a little thinking & this book is sheer gold.I will not say that I overstayed in the valuation parts but I do admit it was good to understand & what to look for whilst reading the various trade papers. Exactly why do profits matter?Finally, the chapter on volatility...haven't we all been caught in volatility is priceless. It's helped me in my trading immeasurably.I saw Mr Carret on Lou Rukeyser when he was in his 90's & still working. He impressed me then, vigorous in mind & body, & I was saddened to hear that he died at 101 just 2 years ago. This book like the man, is a time that is lost to all of us & thus with the Internet bubble we were condemned to repeat it.I wish I had read him earlier. Honestly.God Bless you Mr Carret & Thanks

A dry, yet enlightening book on speculative investing

Originally written in the 1930's "The Art of Speculation" examines and explains strategies, tactics, and vehicles for speculating in the financial markets.The author begins by defining speculation as opposed to investing or gambling. Markets and their inner workings are defined, as well as the stocks, bonds, and other speculative investment opportunities. Several methods for timing the market, utilized at the time of writing are explained and for the most part dismissed, which undoubtedly have parallels in the modern financial world of today.Forecasting of the financial markets is discussed as well as the methods for increasing leverage, primarily, trading on margin. Strategies for minimizing risk, hedging, shorting, as well as put and call options are examined and discussed in detail. Specific industrial sectors covered include railroad (remember we're back in the 20's and 30's for this book) industrial stocks, utilities, and mining operations. An enlightening discussion of the business and investment potential of oil and mining stocks is presented. It serves to educate the reader on which links in the chain of exploration, development, transportation, processing, and retail sale of these industries are most suited for differing speculative risk tolerances. As we jump ahead 70 years to the markets of 2000, the reader can translate, and apply these analysis to companies occupying comparable positions and strategies in the Dot-Com world, and modern business in general.If you've got some time to kill, there is plenty of valuable information in this book. It took me a while to get through it, cause frankly it's just not an exciting read. It may very well put you to sleep. If you are simply looking for an intro to investing and getting finances under control, one of the "Dummy" books will be a much better, more practical book to read. Buy this book if you are interested in an historical perspective on speculative investing, which is in many ways applicable to the financial markets of today.