The Little Book That Makes You Rich: A Proven Market-Beating Formula for Growth Investing (Little Book Big Profits)

  Author:    Louis Navellier
  ISBN:    047013772X
  Sales Rank:    21443
  Published:    2007-10-05
  Publisher:    Wiley
  # Pages:    208
  Binding:    Hardcover
  Avg. Rating:    4.0 based on 47 reviews
  Used Offers:    12 from $9.96
  Amazon Price:    $13.57
  (Data above last updated:  2008-08-06 04:06:21 EST)
  
  
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The Little Book That Makes You Rich: A Proven Market-Beating Formula for Growth Investing (Little Book Big Profits)
  
Profit from a powerful, proven investment strategy

The Little Book That Makes You Rich is the latest book in the popular "Little Book, Big Profits" series. Written by Louis Navellier -- one of the most well-respected and successful growth investors of our day -- this book offers a fundamental understanding of how to get rich using the best in growth investing strategies. Navellier has made a living by picking top, actively traded stocks and capturing unparalleled profits from them in the process. Now, with The Little Book That Makes You Rich, he shows you how to find stocks that are poised for rapid price increases, regardless of overall stock market direction. Navellier also offers the statistical and quantitative measures needed to measure risk and reward along the path to profitable growth stock investing. Filled with in-depth insights and practical advice, The Little Book That Makes You Rich gives individual investors specific tools for selecting stocks based on the factors that years of research have proven to lead to growth stock profits. These factors include analysts' moves, profit margins expansion, and rapid sales growth. In addition to offering you tips for not paying too much for growth, the author also addresses essential issues that every growth investor must be aware of, including which signs will tell you when it's time to get rid of a stock and how to monitor a portfolio in order to maintain its overall quality. Accessible and engaging, The Little Book That Makes You Rich outlines an effective approach to building true wealth in today's markets.

Louis Navellier (Reno, NV) has one of the most exceptional long-term track records of any financial newsletter editor in America. As a financial analyst and editor of investment newsletters since 1980, Navellier's recommendations (published in Emerging Growth) have gained over 4,806 percent in the last 22 years, as confirmed by a leading independent newsletter rating service, The Hulbert Financial Digest. Emerging Growth is one of Navellier's four services, which also includes his Blue Chip Growth service for large-cap stock investors, his Quantum Growth service for active traders seeking shorter-term gains, and his Global Growth service for active traders focused on high growth global stocks.
                  Reader Reviews 1 - 47 of 47                 
  
  
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07-03-08 4 (NA)
(Hide Review...)  Ideas found elsewhere, but overall good
Reviewer Permalink
The book provides 8 clear ways to evaluate if you should buy a stock. These ideas are similar to William O'Neil or other investors, but overall good reminder as to what to look for. You can read this book in an hour. The only issue with this book is that you are basically buying and holding even when the market is down.

Do you want to know what the Author is buying? Go to his web site at www.navellier.com where he manages funds. His model portfolio's are down, some over 20% ! Yes, the issue here like many people that manage funds or model portfolios is that they stay invested even in the worst times.

Indicating what to buy is good as this book outlines, but having people hold on for a gut wrenching ride losing over 20% to wait YEARS to get it back to me is foolishness.

What is missing in this book is an overall market viewpoint to answer the question "Should I be a buyer, selling short, or stay in cash?"

This book does not answer that question. A great book that will and pointed to the down market in 2008 is the classic "Martin Zweig Winning on Wall Street." This book is a real winner and has a similar formula for picking stocks but you will get few results.

I would take Navellier stock picking recommendations then be a buyer based on Zweig's marketing timing model. Why buy big in a down market? If you want a gut wrenching experience go to Cedar Point or 6 Flags.
(Review Data Last Updated: 2008-08-06 04:08:14 EST)
06-09-08 5 (NA)
(Hide Review...)  The Little Book that Makes You Rich
Reviewer Permalink
Very simple to understand and very straightforward. It helps an investor to understand he needs to remain cool, rely on facts and forget about emotions.
(Review Data Last Updated: 2008-07-14 04:10:07 EST)
05-17-08 4 (NA)
(Hide Review...)  Numbers are King, but other factors at play
Reviewer Permalink
This book provided an excellent overview of successful growth investing; but, while providing broad strokes, the book seems primarily focused on selling further services from Mr. Navellier. I share Mr. Navellier's love of numbers, but I wish there were further information on the exact forumlas used so I could replicate the calculations on my own...unless he is personally screening each of the 5000 stocks each day.

I tried to sign up for the given website and I have trial access, but have yet to receive credentials to sign on as a member--after two attempts and two weeks later. I have received all of the solicitations to purchase investing newletters though--from $200 to over $1000 per year or more.

Mr. Navellier is one of the few investors who beats the S&P 500 according to the Hulbert Report, but what if I invested that $1000 per year instead of purchasing the newsletter? If I invest $1000 for 20 years at a growth of 12% a year, $20,000 becomes $90,000 in a no load index fund--discounting taxes and other fees...I feel free to discount as Mr. Navellier does it in his advertisements.

The positives of the book are as follows:
1. It gets you excited about returns
2. It makes a good case for growth investing.
3. It is well written.
4. Mr. Navellier has demonstrated he is one of the few money managers to consistently beat the S&P 500

The negatives:
1. No exact way to replicate results on your own, you need the "free" website to do that.
2. The constant reminders that Mr. Navellier's newsletters were successful, if only you had purchased one...

(Review Data Last Updated: 2008-06-10 03:40:17 EST)
05-14-08 5 (NA)
(Hide Review...)  Great little book
Reviewer Permalink
Excellent explanation of the methods used to evaluate the financial strength of a business enterprise.
(Review Data Last Updated: 2008-05-18 03:43:07 EST)
05-02-08 2 (NA)
(Hide Review...)  faulse hopes
Reviewer Permalink
this little book shoud have been less patronising The authors naivite on thinking his readers were going to be his extended children got him to writte a 101 of finances. No to useful for the prise.
(Review Data Last Updated: 2008-05-17 03:44:43 EST)
04-11-08 5 (NA)
(Hide Review...)  Good advice
Reviewer Permalink
Excellent book, full of advices on stock market and how to find the right company to put your money on! Really good.
(Review Data Last Updated: 2008-05-02 05:05:32 EST)
03-23-08 4 (NA)
(Hide Review...)  Worthwhile reading
Reviewer Permalink
Book is worthwhile reading; gave a copy to two of my sons who also found it valuable to read.
(Review Data Last Updated: 2008-04-12 07:47:24 EST)
03-14-08 2 (NA)
(Hide Review...)  Marketing for his website, but great for a technical analysis review.
Reviewer Permalink
This is a good book... not a fantastic book that will certainly make you rich, it reads more like a marketing ploy for subscribing to his website. (Which, by the way, by the time his ratings come out there has been so much action on those stocks you may miss the true benefits of getting into a position early... he's great at making money for his clients, then passing the news on to his subscribers) but his rating system is a great resource and is good as confirmation of one's own analysis. It is not good for relying on solely, but when combined with other trading methods and your own independent research his quantitative and fundamental grades can be another resource.

This book's strength lies in the condensed information. Think of this as a good set of "cliff notes" from your technical analysis lecture of Finance class in grad school. Anyone with a background in technical analysis will appreciate the brevity as a refresher, and a reminder of some of the elements of analysis that may have be overlooked. For those who haven't had any formal training there is nothing intimidating in this easy-to-understand approach and is definitely geared more towards those without in-depth resources.

Perhaps the best thing about this book is the constant reinforcement of the discipline needed to trade- keeping emotions out of analysis, and not "falling in love" with losing stocks. His disciplined approach, as he constantly reminds you, is probably the most valuable part of this book.
(Review Data Last Updated: 2008-03-23 12:41:59 EST)
03-10-08 5 (NA)
(Hide Review...)  Concise tips for the growth investor.
Reviewer Permalink
This slim volume provides an excellent, concise, highly readable case for growth investing. Author Lewis Navellier, who edits a financial newsletter, is careful to keep his Wall Street jargon to a minimum, and makes no pie-in-the-sky promises. This is a book for investors who are willing to do the hard work of evaluating and selecting stocks, and who have the patience to wait for the market to catch up to their insights. Navellier knows his alphas and betas. He states frankly that an investor should have a portfolio of at least $200,000 to use the methodology outlined in this book. However, getAbstract finds that investors with any level of assets could benefit from his caveats about the Wall Street hype machine and his lucid explanation of what growth investing is and why it works.
(Review Data Last Updated: 2008-03-15 11:05:26 EST)
02-08-08 4 1\1
(Hide Review...)  Navellier Rocks
Reviewer Permalink
This is an important book for those in the market now. If your squimish about investing or not keeping up Louis Navellier does a good job explaining his stances and mathamatics of risk vs reward in the market.
If your not and investor or dont play in the market its probably not much value to you. Watch CNBCs Mad Money and get the basics with Cramer.
Its about a well rounded approach to the market. "The Little Book That Makes You Rich" is a good strengthening tool for avg joe investor.
Thanks
B Herp Cleveland OH
(Review Data Last Updated: 2008-03-10 18:54:59 EST)
01-24-08 2 0\1
(Hide Review...)  User manual for website
Reviewer Permalink
While the book provides the reasoning behind Navallier's successful method of picking stocks and the "fundamental" measures he uses, it does not go deep enough to explain the thresholds that make stocks "A-grade" as opposed to "B-grade" or something else.

Rather than providing open and empowering methods to investors, Navallier uses the book to build his credibility along with a solid case for you to use his proprietary portfolio tool on the web. It most likely works in making you rich, but such an approach defeats the purpose of writing/reading a book on growth investing.
(Review Data Last Updated: 2008-02-08 12:28:39 EST)
01-23-08 3 0\1
(Hide Review...)  Tread with caution here.
Reviewer Permalink
Overall the book presents a useful selection criteria for selecting growth stocks and I agree with those that say the book is written for the novice investor. Those who have a few years in the market will find much of the information repetitive.

The Little Book That Makes You Rich, outlines eight criteria for filtering out the best stocks for growth. The one problem is that when you demand the very best in performance from each criteria, you are looking at stocks that are already expensive.

The one red flag that I might caution potential readers to is that Navellier strategically leaves breadcrumbs back to his website, where both the novice and the curious will follow. I suspect that at some point, when your appetite has been sufficiently whetted that he will pitch you on his expensive newsletters.

This is not to negate what Navellier has to say but the book doubles as a marketing tool for him. Let face it, if I knew a way to make you rich, why would I tell you, unless in doing so, it makes me richer?

(Review Data Last Updated: 2008-02-08 12:28:39 EST)
01-20-08 4 (NA)
(Hide Review...)  I recommend this book
Reviewer Permalink
This book is very well written. You need at least a basic knowledge of the markets in order to fully understand all the concepts. The author offers readers an online stock-rating mechanism that can be used without any other purchases. I heard an interview with him on Chuck Jaffe's "Your Money," Podcast and the author said he offers the tool for free "because it's the right thing to do." The strategies mentioned in the book make a lot of sense. Can this little book really make you rich? With the right amount money to start, some guts, and some time for long-term investments, it just might help. At least you won't go broke reading it.
(Review Data Last Updated: 2008-01-24 01:30:34 EST)
01-12-08 4 (NA)
(Hide Review...)  This method can't make you rich, but can increase your odds
Reviewer Permalink
Navellier's main theme is that the market is not efficient. Unlike John Bogle's book in the same series, which not surprisingly touts the efficient market theory and investing in low-cost index fund, Navellier is looking for quantifiable and measureable numbers that will allow someone to systematically beat the market over long periods of time.

First he goes over eight fundamentals and explains their importance. Yet he also warns the reader not to overemphasize any one of these fundamentals. Too often, people get caught away in one measurement that works for a particular period, and try to repeat the formula, which doesn't work when the rest of the market catches on.

What differentiates Navellier's approach is the use of alpha as distinguished from beta. Unlike other approaches, he does not want to just magnify returns by using high beta stocks and taking on more risk. Instead he looks for how much return a stock differs from market movement. This is in contrast to indexing. By coupling the 8 fundamentals, and then looking at a high alpha, he tries to pick stocks whose alpha will make them outperform (rather than underperform) the market. Finally, to maximize the possibility that the differential performance is on the up size, he gives a high weight to his most powerful variable, the Quantitative measure, which gauges the relative recent performance of a stock against the market. He is looking for underlying buying pressure.

Will this method work with every stock pick? No. Will it guarantee that you will not lose money in a bear market? No. Will it be as easy to use as just logging into the website, picking "A" stocks and selling them when their grades go down? Not likely. But by combining the quantitative measure and the fundamental measure, and buying Grade A stocks, the promise is that you can beat the market over indexing.

Even if statistically this method beats indexing, it may not be easy for the individual investor to implement successfully. For one thing, you will be buying, selling and paying taxes too often. And there is no way around the fact that all of the measurements and grades are based on past performance. Finally, it requires access to the data, which Navellier graciously provides at his website for free. This book may not make you rich, but it'll definitely drive people to try out the newsletters after finding it hard to put the principles into practice and needing more guidance.
(Review Data Last Updated: 2008-01-19 15:05:15 EST)
01-12-08 5 (NA)
(Hide Review...)  Great Book
Reviewer Permalink
This book is one that should be read by everyone with an interest in making money. It makes investing in the market easy without too much risk if you follow the guidelines in the book
(Review Data Last Updated: 2008-01-19 15:05:15 EST)
01-08-08 5 0\1
(Hide Review...)  The Little Book that makes you rich
Reviewer Permalink
The book was very direct and to the point. If it is followed with discipline you couldn't keep from being succesful. Typical Navellier.
(Review Data Last Updated: 2008-01-12 13:38:39 EST)
12-15-07 4 1\1
(Hide Review...)  A formula with alpa beta risk
Reviewer Permalink
The book explains a formula based on eight fundamentals of a company that proven outperform market. Formula is using alpha beta to meaure risk when rating a stock. Stocks rated are for long term investment even tough we can pick it for short trade (3 month) in quantum stock with more risk. I can not see in the book how to use the formula for retail ivestors with small capital $1000-3000. I just wonder if any out there the little book that make you rich with options.
(Review Data Last Updated: 2008-01-08 12:45:37 EST)
12-15-07 5 1\1
(Hide Review...)  Little Book Series
Reviewer Permalink
The book was shipped in perfect shape.
This book, as well as all the "Little Books" in the series are excellent. I have all of them in the series so far. None have disappointed.
(Review Data Last Updated: 2008-01-08 12:45:37 EST)
12-13-07 4 (NA)
(Hide Review...)  My Favorite Growth Investing Book
Reviewer Permalink
This is the only book on growth investing that I liked. It is very concise, very informative, and makes a lot of sense. Don't waste your time and money on William O'Neils growth investing books; what you need is this book.

PS: I am a value investor!
(Review Data Last Updated: 2007-12-15 10:20:31 EST)
12-03-07 4 (NA)
(Hide Review...)  Easy Reading/Good Advice
Reviewer Permalink
Navellier's book is easy to read and understand. His views and suggestions on growth investing seem to be based on sound research. The book would make a good gift for new and old investors.
(Review Data Last Updated: 2007-12-13 07:55:12 EST)
11-30-07 5 (NA)
(Hide Review...)  Louis Navellier,s Book
Reviewer Permalink
Great, this book combines most key fundamentals in a system easy to follow. Grader Pro is very useful in stock analysis since the work is already done for you. I recommend this book without reservations.
(Review Data Last Updated: 2007-12-04 03:40:29 EST)
11-29-07 1 (NA)
(Hide Review...)  A Sucker's Bet
Reviewer Permalink
My father was slavishly devoted to Navellier's advice for years and now claims that following that path led him to disaster, costing him "hundreds of thousands of dollars." Always be wary of anyone who promises to make you rich, as this is the ancient calling card of the charlatan who preys upon those who allow their reason to be overcome by their greed.
(Review Data Last Updated: 2007-12-04 03:40:29 EST)
11-28-07 2 (NA)
(Hide Review...)  Mostly Shallow
Reviewer Permalink
"The Little Book That Makes You Rich" centers on eight factors for rating stocks: 1)Positive earnings revisions, 2)Positive earnings surprises, 3)Increasing sales growth, 4)Expanding operating margins, 5)Strong cash flow, 6)Earnings growth, 7)Positive earnings momentum, and 8)High return on equity. While there is logic behind what Navellier emphasizes, I think today's markets require more - eg. appropriate weighting of the eight factors, how should one decide between foreign markets and the U.S., or commodities and stocks?; Enron proved that high return on equity (ROI) and most everything else was manipulable behind imagination. Further, the market today seems to be more psychologically driven than anything else (eg. up/down 200+ points one day after another -based on hopeful interpretations of someone's comment at the Federal Reserve.

I'm now reading Ric Edelman's "The Lies About Money" - it seems much more informative.
(Review Data Last Updated: 2007-11-30 19:08:19 EST)
11-26-07 5 (NA)
(Hide Review...)  Can't miss method
Reviewer Permalink
I like this book for two reasons - it's specific and it gets to the point. The specifics are 8 characteristics that everyone agrees are traits of a good company - increased earnings, increased margins, good ROI, etc. Navallier distills these points and explains them in a no-nonsense logical way. The author is a growth stock oriented money manager and newsletter author.

If you're looking for an esoteric, theoretical book about chart reading or trend analysis, this isn't the book for you. If you're looking for a good solid book that will make you money, buy this book. To top it off, the author has a free site where you can rate stocks you're interested in.
(Review Data Last Updated: 2007-11-29 04:13:01 EST)
11-23-07 5 1\1
(Hide Review...)  The Little Book That Makes You Rich
Reviewer Permalink
The book is well written and easy to understand. I found it to be very enlightening.
(Review Data Last Updated: 2007-11-26 19:39:47 EST)
11-17-07 5 1\1
(Hide Review...)  Louis Navellier's little book that makes you rich
Reviewer Permalink
The little book that makes you rich is an excellent informative booklet that comes with a WEALTH of help to get you started with your investments.
(Review Data Last Updated: 2007-11-23 01:30:19 EST)
11-16-07 4 1\1
(Hide Review...)  Growth Investing
Reviewer Permalink
This book explains clearly and in detail Louis Navellier's system for finding growth stocks. He uses 8 criteria, defining them and showing how they help determine whther or not a stock will grow in value. It is an excellent introduction to value investing and to Navellier's specific criteria for determining a stock's potential for growth. Growth investing and value investing look for different criteria in choosing stocks. An investor should probably take both systems into account.

A glossary and index would be useful.
(Review Data Last Updated: 2007-11-23 01:30:19 EST)
11-15-07 2 (NA)
(Hide Review...)  Not too informative, but some interesting insight
Reviewer Permalink
I'm not sure why the book is getting some much press other than the fact that Mr. Navellier has been doing a lot of promotion (which by the way is cleverly aimed at indirectly promoting his newsletter services). I had never heard of Louis Navellier before I came across the book, so I did a little researching into his recorded stock market performance record. Navellier has six publicly traded mutual funds. The best of the group as far as five year annualized performance is his International Growth Fund (NAIMX) at 20.86% ... not amazing and certainly no CGM Focus (33.52%) or Kinetics Paradigm Fund (26.95%), but respectable non the less.

Overall, "The Little Book That Makes You Rich" is a decent book that describes a system for growth stock investing that is very similar to the IBD method. Navellier doesn't really go into enough detail for the reader to exactly replicate his strategy without using his companion website tools (which you have to sign up for his newsletter to get full access to). However, he does lay out the general frame work for his strategy which revolves around grading stocks based on eight fundamental grades and a quantitative grade. The eight fundamental grades are:

1. Positive Earnings Revisions
2. Positive Earning Surprises
3. Increasing Sales Growth
4. Strong Cash Flow
5. Earnings Growth
6. Positive Earnings Momentum
7. High Return on Equity

Navellier does not explain his quantitative grade in detail but he does explain that it is an indicator of institutional buying pressing on the stock. He also eludes that the grade is determined by the stock's reward/risk ratio, which he does describe in a fair amount of detail and is actually one of the more interesting discussions in the book.

Navellier defines reward/risk as alpha divided by standard deviation for the trailing 52 weeks. He further explains that it's important to calculate alpha based on a relevant index. For example, when determining alpha for a stock in the NASDAQ, it's important to use the NASDAQ composite index to measuring alpha against, not the DJIA. He also goes into a rather incoherent discussion about how alpha is not the same as relative strength:

"Relative Strength measures how a stock is doing relative to the index at any moment. For example, if a stock tracks a market benchmark precisely with 100 percent correlation, and that benchmark rises 50 percent in a year while the stock rises 100 percent, that stock will end up having a beta of 2 and an alpha of 0. Now, I know what you are thinking: How can a stock that does double the overall stock market have an alpha of 0? It's simple, the entire stock return was completely explained by it's high beta and none was explained by it's alpha."

Now that sounds like a decent explanation of alpha verses beta, but I don't see how this explains how relative strength is involved. In any case, this excerpt shows Navellier's relaxed style of writing that he uses throughout the entire book. His writing style is similar to Peter Lynch's writing style, both use a common sense, simple approach to explaining things that tends to work a little better for Lynch.

Essentially, Navellier's strategy revolves around picking stocks that score high on all his fundamental grades and his proprietary quantitative grade. He also states that extremely high returns can be had by aggressively trading stocks that only score within the top 20 percent in all the eight fundamental grades. He claims that by sticking to a strict policy of only buying stocks that comply with this criteria and selling them the minute they no longer do, one can average better than 50 percent annual gains.

Aside for the fundamental and quantitative grading, Navellier makes several other points worth mentioning:

- He recommends a portfolio of a 60/30/10 mix between conservative/moderately conservative/and aggressive stocks

- Navellier is a strong proponent of the IBD (so he definitely has good judgment there!)

- He is a believer in the sell-in-May-and-go-away philosophy

- He also believes in the first and third year of a presidential term as a better time for market returns

- He claims making new investments in March, June, September and December is a good idea for growth stocks because it puts you in a good position for earnings releases

- Navellier says the best way to protect from accounting fraud is to screen stock for good grades in operating margin, return on equity, and cash flow as it's difficult to manipulate all three of these

- He reminds us to always remember Wall Street is a sales machine (very good advice in my opinion)

- Navellier points out that "The ETF effect" can cause stocks to get bid up based on rebalancing of index funds and not necessarily performance

And so there you go, "The Little Book That Makes You Rich" isn't the most informative or ground breaking read and often reads like a sales pitch for Navellier's newsletter, but it has some interesting insight and lays out a decent method for stock picking. If you have a couple of days to mow through a quick read on growth investing, it's worth picking up.
(Review Data Last Updated: 2007-11-18 01:15:32 EST)
11-14-07 5 (NA)
(Hide Review...)  Logical and Understandable; Takes the Jargon Out of Stock Trading
Reviewer Permalink
Well written, very understandable, and easy to read. To the point and logical: finally a book that is NOT jargon-filled and NOT overwhelming in meaningless technical detail. This book will be a very useful and beneficial resource to me future in trading stocks. Well done.
(Review Data Last Updated: 2007-11-17 01:16:23 EST)
11-13-07 5 (NA)
(Hide Review...)  Don't miss this one
Reviewer Permalink
Navellier has a proven, mathematical approach to buying stocks. In this volatile market, his advice has proven very helpful for my portfolio! He includes access to his website so that you can rate your portfolio, and check his ratings for future purchases.
(Review Data Last Updated: 2007-11-16 14:40:57 EST)
11-11-07 4 1\1
(Hide Review...)  Interesting
Reviewer Permalink
As a new investor in the stock market, I enjoyed the ideas this book has to offer. The book is easy to read and understand as I have already begun to put in place some of the tactics mentioned.
(Review Data Last Updated: 2007-11-14 01:16:02 EST)
11-07-07 4 0\1
(Hide Review...)  Help on buying stocks
Reviewer Permalink
A good book for the advanced invester. If you do not have an advanced understanding of wall street it may be a slow read. Also the web site that rates your holdings is great.Just put in your stocks and they are rated as per his book.
(Review Data Last Updated: 2007-11-12 01:14:01 EST)
11-05-07 2 1\1
(Hide Review...)  The Little Book that might make you a little more money than some folks some of the time.
Reviewer Permalink
The title of this book is very catchy, entirely appropriate if you had invested with Navellier through the `80's and `90's when the market went from less than 1,000 to almost 12,000 (and the NASDAQ even more so, of course), but, if you were with Navellier during the market tank of 2000-2003, then you would know that the title of the book is more than a little misleading.

The success of Navellier is 100% dependant upon the overall stock market. When the market is going up, then the title of this book is OK. When the market is going down, it is easy to lose money much faster than the market does. There are exceptions to every rule, but overall, these "fundamentally superior" companies with outstanding earnings just follow the stock market. Normally, when the market is going down, these stocks will lose against the market up to twice or three times as much on a percentage basis on any given day.

Normally, when the market is tanking and your account is also, you'll receive a nice E-mail telling you to sing the "Don't worry, be happy" song, for every downturn is nothing but a buying opportunity. However wonderful that may be for Forbes, who wrote the forward, and Navellier himself, since they are both richer than Pharaoh, it is not a joyful experience for the normal investor. Since the normal investor is fully invested, exactly what money do we have sitting on the sidelines? Usually we are fully invested with the limited money we have, hoping against hope, to make some money, and have no from-under-the-mattress sack of cash to pony up since we just lost our shirts during this "buying opportunity"!

Navellier recommends what he calls his "Oasis" stocks, to ameliorate your losses when the market is dropping. The only problem is that these "oasis" stocks won't save your portfolio, for they will drop like rocks also, at least in the market of 2003 - 2007.

In early March 2006, the market dropped from a high of 11,600, but by October 2006, had recovered to 11,600. All of Navelliers stocks had lost his investors tens of thousands, if not hundreds of thousands of dollars, and were way down from March through October, not recovering until the spring of 2007. For relatively new investors, during that period we all lost everything we had made back to our principle, while the market was flat. Mr. Navellier stated that during that time period "growth" stocks had fallen out of favor. No kidding! "Out of favor?" I would hate to see how much money we all would lose if the stocks became downright unpopular.

Once, at a seminar, Mr. Navellier showed a chart that had a rapid rise and then fall. He states that he told those investors after the fall that at least his stocks had made 3% more than the market. That is a far cry from anything else stated by Mr. Navellier, for double, triple, even quadruple gains are the norms, going up, but the mirror reverse, which is never mentioned, is true when the market is going down.

There is a chart for the Quantum Growth Stocks in this book, which shows a 1,500+ point rise since 1998, including making money during the down market of 2000-2003. There are liars, darn liars, and statistical number crunchers. I would have to see the raw data that was "back tested" before I could believe this chart. Certainly, these stocks utilize stop orders, so there is a somewhat limited downside, but normally the stops that have not been exceeded are just lowered, and until these stocks hit their stop order limits, they can lose your shirt for you also.

The unfortunate occurrence in today's market is that it wanders up and down, up and down, up and down. If that is repetitive, so is the market. Every time his investors make a little bit of money, the market drops and we lose it all over again. And again. And again.

The Little Book That Makes You Rich is titled with a marginally verifiable statement, for both Forbes in the forward and Navellier know the reality of these "fundamentally superior" stocks, and sugar-coat it out of existence in this book.
(Review Data Last Updated: 2007-11-08 01:14:00 EST)
11-05-07 4 1\2
(Hide Review...)  Little Book not so small.
Reviewer Permalink
This "Little Book" may be small, but it is rich in stock market
investing wisdom. R.O.
(Review Data Last Updated: 2007-11-08 01:14:00 EST)
11-03-07 1 0\1
(Hide Review...)  little book that will make you rich
Reviewer Permalink
I think the book was fair but more about selling his servives which range from about 399.00 to 1399.00.Can not coment on services because have never used but still think this was a vehile to sell his services!
(Review Data Last Updated: 2007-11-06 01:13:07 EST)
11-03-07 1 0\1
(Hide Review...)  Do not waste your $$$$$
Reviewer Permalink
Do not waste your $$$$$; The little book of common sense investion by Boogle is best way to to invest for most of us. If you have money to play you may get something out of this.
(Review Data Last Updated: 2007-11-06 01:13:07 EST)
10-20-07 3 15\17
(Hide Review...)  Good for Beginners,
Reviewer Permalink
This small and easy to read book provides a good introduction to the fundamentals of growth investing. However, the experienced investor will find little inspiration in reading that stock valuation is based on earnings and sales growth as well as other Finance 101 parameters such as betas and alphas. The book doesn't go into much detail on how the 8 parameters for growth investing fit together so you can calculate your own valuation score and tweak it for your own needs.

To find a stock's valuation score, you'll have to go to the book's companion Web Site where you'll find a carefully crafted set of pages that feel like they were designed by a marketing consultant. The stock database is interesting but of limited value to an investor. The registration process is done in two steps: first you sign up and get a generic account that doesn't let you save a portfolio, then two days later you get an email that allows you to create your own username which can then be used to save a list of stock picks. Why is this necessary? This feels like it's part of a marketing campaign that aims at increasing your hunger for more. Once you get to the database, you'll notice that many A rated stocks are overvalued and at the peak of their hype cycle. Blindly building a portfolio of A rated stocks seems like a good way to loose your money.

In the end the book leaves you with a hunger for more. How do ratings evolve over time? How do you weight the 8 fundamental indicators? What is the "Quantitave Grade" that mysteriously appears in the stock database but never gets explained in the book or on the site? It's hard to believe that all of these open ended questions are not part of a more elaborate strategy: Give the reader a taste of Navellier investing and then let them eat the full meal by buying into his funds.
(Review Data Last Updated: 2007-11-04 01:12:53 EST)
10-19-07 5 4\8
(Hide Review...)  A Quick Read for Quick Money
Reviewer Permalink
As a new investor I found Mr. Navellier's "Little Book" very helpful. His PortfolioGrader Pro system comes off as easy to use, very smart and just the tool I need to succeed in this ever-changing market. I've only just begun to check it out on-line, but so far I'm very impressed. How excellent for Mr. Navellier and his subscribers that the market appears to have made a great shift into growth stocks, which he strongly endorses. I really can't wait to turn this quick-read into some quick-money and am glad that there's a book out there to show me how.
(Review Data Last Updated: 2007-11-04 01:12:53 EST)
10-18-07 5 4\4
(Hide Review...)  Great book!
Reviewer Permalink
Great Book! I cannot believe his secret stock database is available to the public! Navellier's performance quotes are from The Hulbert Financial Digest, which is an independent service that rates Navellier's newsletter. Apparently, Navellier also has no-load mutual fund called Fundamental A (NFMAX) that is in the Top 1% and up well over 34% YTD! There is no Morningstar rating yet, it is apparently too new. The book talks about A-rated stocks a lot. Obviously, these stocks have great performance! His Blue Chip Growth letter is also having an incredible year. This book is a must read for all serious investors.
(Review Data Last Updated: 2007-10-21 01:13:33 EST)
10-18-07 5 5\5
(Hide Review...)  Growth vs Value
Reviewer Permalink
Most people I know (including myself) spend more time assembling their Fantasy Team than finding good ways to invest their money. Putting their money on hands of professionals that unfortunately haven't been able to produce better results than the 8 ball has been the choice of many but the results haven't been acceptable.

I have always found myself to be more a Value Investor fan but for those who like faster rewards investing in Growth stocks can be a better alternative, people should invest in a style that fits their personality. I have seen tons of studies that suggest that Value is better, while as many that say that Growth is the thing, so my conclusion is that both are good, you can do well if you stick to one style, but stick to it because people get killed in the switches.

Navellier will provide you good foundation in Growth investing in a friendly style with no pompous words and must add that he is very good at explaining concepts that might be terribly complex for many like alpha, beta, standard deviation and accounting terms. An incredible plus is that he will give you free access to his website in which you can rank stocks in diverse categories.

This book can be well complemented with "How to Make Money in Stocks" from William O'Neill

(Review Data Last Updated: 2007-10-21 01:13:33 EST)
10-16-07 1 10\17
(Hide Review...)  Marketing Hype
Reviewer Permalink
In 1999 I invested $225,000 in a Navellier Private Investment account at the advice of my broker. Following the same advice descibed in the little book, 18 months later my investment had shrunk to $108,000, my broker made $10,000 in commissions and I cashed out. As described, Navellier trades frequently. I have continued to follow Mr. Navellier and check his stock grades on his website. His marketing and book only lists the winners. After reading the book I noticed he does not mention his sudden changes in strategy like when he moved to a GARP (Growth At A Reasonable Price) strategy in 2001 because of the failure of his previous investment strategy, see actual results above. Looking on Morningstar, his funds are rated only two or three stars, yet he touts beating S&P 500 4 to 1. Navellier is great at marketing. Follow the advice in this "Little Book that" and it will make you poorer...and wiser.
(Review Data Last Updated: 2007-10-18 01:13:10 EST)
10-13-07 5 17\18
(Hide Review...)  Must-Have for the Growth Investor
Reviewer Permalink
There are numerous types of investing. You no doubt know that. Growth investing is a type of investing that we all should do at some point of our investment life. In fact, I for one love investing for growth and finding good companies poised to grow big time. That's why I enjoyed this book.

Actually, value investing is a form of growth investing. The real problem for the growth investor is finding companies with balance sheets that tell us, "Hey, this company will go places." And, wouldn't it be great if it would do well in any market?

That's where this book can help.

Growth investing produces (or is intended to produce) capital gains rather than income. Income gives us dividends. That comes from, most often, blue chip companies or companies that have been around quite a while.

Growth investing is the place where you can really make money. Income investing is generally done by older people who want to preserve capital and have some fairly secure income. Growth investing is for people who have the time to grow their portfolio over a longer period. It does not pay dividends.

Navellier has created a proven and easy-to-follow approach to growth investing that offers you a rare opportunity to outperform the market without excessive risk. It doesn't get much better than that.

He explains why his method works and he shows you how to find stocks that are poised for rapid price increases no matter how much volatility is in the market.

Most investors are really not that great at investing. And those who call themselves professionals seldom are the best stock pickers.

So you should arm yourself with this book. Go out and find the winners. It only takes a few to make you rich.
(Review Data Last Updated: 2007-10-17 01:11:04 EST)
10-11-07 2 19\20
(Hide Review...)  Poor book, probably useful web site
Reviewer Permalink
Unarguably, Louis Navellier is a successful stock picker. He is a self-declared numbers geek who came up with a stock screen formula that aids selecting stocks that have an above average likelihood to outperform "the market". The book does not really reveal the formula itself. However, it directs you to a web site (currently free of charge) that functions as a computerized stock screen and stock evaluator. The formula relies on the combination of 8 fundamental measures and a quantitative grade assessing market movements in supply/demand for the stock. The stock evaluator in many respects resembles the one available at Investors Business Daily's for-fee web site. Chapter 1 gives a good and concise summary of the principle. Chapters 2 through 8 addresses most of the fundamental measures; these chapters may be useful for the complete novice, but even for the minimally experienced reader they prove shallow. The rest of the book was more insightful, but also contained important errors and omissions. An important and well-covered concept was portfolio design, balancing the sectors, and picking stocks of varying risk (conservative, moderately aggressive and aggressive) at certain proportions (60/30/10%, respectively). A significant problem is that Navellier never defines the benchmark that the portfolio allocation (by sector) is supposed to imitate and beat by superior stock picking. His research started with the S&P500, but today it he also researches and in invests in foreign stocks - without stating the benchmark that he is beating. Towards the end of the book, he recites the "sell in May and go away" market timing as if it were true. The idea indeed worked somewhat once upon a time, but it was elegantly discredited by Ken Fisher in his latest book ("The only three questions that count" - a book I would highly recommend). Navellier's attempt describing and explaining the presidential cycle of the market was in part wrong, and in part thoroughly unsophisticated. Fig. 19.2 is outright misleading. It is showing the performance of "A-rated" stocks (identified by Navellier's method) between February of 1998 and December of 2006. It shows 1,127% in profits. This would be true if the investment was in a tax-deferred (IRA) account, and (most likely) if there was no frictional cost of trading (commissions and spread) that would have eroded the profits. Navellier's approach is certainly not conducive to hold the typical pick for eight years without trading. In addition, the figure has no reference benchmark over the same period of time. This is merely an example; the book contains a surprisingly great amount of mistaken or misleading information. Although the book warns you of the dangers of the stock market, it also may leave you with the mistaken notion that the web site's stock picking and evaluation would provide a safety net. It might, but only together with additional stock evaluation. For example, Navellier never mentions whether large-scale insider selling has an impact on subsequent stock performance of those particular stocks that his formula identifies as "A-rated" (and there are such stocks - I checked). The web site is nevertheless potentially useful, if one does not try to accept its recommendations automatically. Some of the "A" stocks are overpriced, whereas others are really bargain-priced in spite of their clear growth and growth potential. Navellier does not alert to ways of further evaluating the leads, and that is a significant shortcoming of the text. The whole book is verbose compared to its content. You could skim large portions without missing anything important. Its style - well, Mr. Navellier is probably a much better investor and number cruncher than a writer. Among the four published volumes of "The little book" series, I would rank this one second or third from the top (the best is by Joel Greenblatt, a real fun and insightful introductory book; the worst, by far, is Christopher H. Browne's). Using Navellier's book, the novice will not get enough explanation to take action (at least, not safely), whereas the more experienced investor learns just about nothing from the book (which is similar to the CAN SLIM approach by O'Neil). The access to the data base the best aspect of this book for which you don't really need to buy the book. Greenblatt's book also has a companion website (a useful tool). Note that Greenblatt's magic formula identifies some of the same stocks that Navallier's site rates "A". The "quantum stock" part of the book promulgates the practice of "renting" a stock. It might work in experienced hands, but it is certainly not helpful in creating jobs - that societal benefit of stock market investing.
(Review Data Last Updated: 2007-10-14 00:39:06 EST)
10-08-07 5 1\1
(Hide Review...)  An Easy-to-follow Guide to Beating the Market
Reviewer Permalink
Put simply, this book is a must read for anyone who is serious about investing in stocks, and more importantly, beating the market. Navellier lays out in plain, easy to understand language the eight factors to look for in winning stocks. I would have never thought that a book which only took me a few hours to read could so profoundly effect the way I approached investing, and have such a positive impact on my portfolio. Whether you are a beginning investor, or someone who has been playing the market for years, I think you will profit mightily from the insights in this book!
(Review Data Last Updated: 2007-10-11 00:48:46 EST)
10-08-07 5 3\3
(Hide Review...)  Little book, huge value
Reviewer Permalink
Another in a great series of Little Books. This packages a strong message in punchy form. It's highly readable and a must for anyone who invests actively. A great read for institutional employees or those who manage their own accounts.
(Review Data Last Updated: 2007-10-11 00:48:46 EST)
10-05-07 5 3\6
(Hide Review...)  Excellent resource for growth oriented investors
Reviewer Permalink
The growth vs. value debate is a favorite for many Wall Street veterans, with lots of folks in each camp being a die hard believer of their point of view regardless of current market conditions. Personally, I think one should always be flexible in his/her investment approach, and perhaps more importantly, any investment approach done right can make money in any market environment. For the growth investing side of the coin, Navellier's Little Book is a very valuable tool.

Navellier detail's a proven yet easy-to-follow approach that can help you make money. One of the common misconceptions of growth investing is that one has to take excessive risk to beat the market, but Navellier shows you how if you have the right selection criteria this is not necessarily the case.

The Little Book's formula looks at eight different fundamental characteristics of a stock, such as sales growth and cash flow, along with several quantitative factors that measure risk versus potential reward. The book also details how to analyze the overall strength and quality of your portfolio without having to apply too much rocket science. One thing I would have liked to see more of is more real world examples and backtested results, but given the dearth of free stock backtesting and screening services out there, its not too hard to do this on your own once you understand the formula.
(Review Data Last Updated: 2007-10-08 03:59:23 EST)
10-04-07 5 4\5
(Hide Review...)  excellent guide to stock picking
Reviewer Permalink
Quite simply, this is one of the best books on picking stocks I have ever read. Most of the books I read in this area are not specific enough about the exact steps need to find high quality stocks. In straight forward easy to read and understand language, navellier revelas exactly what qualities he looks for in growth stocks. most of the tools you need to be a winning investor in growth stocks are in this book. What few tools he couldnt give away in the book he makes available to you on the books companion web site. I think investors both new and experienced can learn a lot about finding winners from this book. Navellier teaches the techniques, the mindset and how to mangage your portfolio over time. It is a gem of a littlebook!
(Review Data Last Updated: 2007-10-08 03:59:23 EST)
  
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