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Already on the second page the author has repeated a whole paragraph. So this book continuous in the american tradition of being a bloated book with its over 600 pages. The book is filled with tables. I think the tables should be reduced. So many numbers are just not very readable. Show the data visually - to convey the message better.
The author goes through fundamental indicators like Price/Earnin, Price/Sales and so on. For each chapter I think it is enough to say something about the geometric mean, std, and sharp ration. As well as some info about the rolling 5 and 10 year return (really only 10 year return is interesting). And a histogram with the 10 - 10% interval of return. And some words about its correlation with the relevant indexes.
Having got through the first 15 chapters - where I learned about the most important fundamental indicators - the really interesting chapters starting. Looking at how to aggregate these fundamental indicators with each other and with technical indicators. This is where the book shines, and Im willing to look past all the bloated and repeating chapters.
key take away is: 1. Most investors underperform because they don't have a time-tested investment strategy. 2. Second reason is that even if they have, they fail to carry it through ups and downs, changing it at the exact time when they shouldn't.
What I would really like to see in a revision of this book is how we can perform the kind of analysis in todays market that the author has made in the historical dataset. E.g. how can I find the top 25 stocks in one of the multifactor strategies mentioned.
For those that dont have time for 600 pages of this - i recommend The Little Book That Still Beats the Market
This is a thick book! But the authors writing is never boring and you will be taken by the hand and if you make it to the end you will be equipped with knowledge and tools that will beat not only S/P 500 but many mutual funds too!. I wish I had read it earlier,it would have saved me a lot of grief and money.
Not an easy read by any means, but Mr O'Shaughnessy's grasp of detail, his detailed understanding of statistics, combined with an evidence based, mathematical approach, is compelling. He essentially distills 30 odd years of stock market performance into a number of key parameters that help maximise investment performance, whilst crucially, reducing risk.