FireYourStockAnalystDuring business school, I took a lot of time to learn about finance and started scratching the surface of economics in general.  I don’t know why it happens that way.  As you get older, the importance of economics and money just seem to become more important.  I never considered myself a “finance” type of person, but honestly at this point it seems as though I know as much as most of my friends on the topic.  The truth of the matter is that finance isn’t really all that complicated.  Economics, on the other hand, is incredibly complex.

Much of the reading I do today is oriented around these topics.  It’s only natural to start planning for the future, and learning about finance is a big part of that.  Considering where to invest what paltry funds are left after loans, food, rent, insurance, gas, has been top of mind lately.  The truth of the matter is that I’m not really investing all that much outside of my 401k.  I started a Roth a few years back, but honestly don’t see adding to it at this point.  The interest rate associated with my loans seem to make it a wash.  It’s a tough decision though.

Despite not having a lot of invested resources, learning about the subject is still top of mind.  After all, someday after paying down my loans there will be some extra to invest, right?  Here’s hoping.

Last night marked the finalization of Fire Your Stock Analyst, by Harry Domash, a book that is supposed to allow laymen to apply professional techniques to analyzing stocks.

The book is broken down into sections that give step by step recommendations on how to analyze growth stocks and then value stocks.   The majority of the book spends it’s time on growth stocks and is well written.  It’s a thorough look at how professionals will look at industries (Porter’s Five Forces)  and individual companies, breaking down financials from Sales down to EPS.

There was a lot of information I didn’t know in this prior to reading.  Some common definitions associated with Wall Street and some more complicated ways of calculating profitability.  The majority of it was straight forward and easy to comprehend.  Many things were not really interesting to me as of now, but if I ever did want to get in depth with stock selection, there are many things I’d come back to.

The strength of the book lies in it’s bare bones approach to stock selection and analysis.  It’s step by step and easy enough that anyone could follow.  It was hardly a page turner, but if you want a good grounding in analyzing stocks, this is a good and inexpensive option.  Recommended.