Secrets of the Investment All-Stars

In Secrets of the Investment All-Stars, Kenneth A. Stern prods nine of the country's best investors into sharing their methods and philosophies for success. Stern profiles value investor Mario Gabelli; money managers Marty Zweig and Louis Navellier; Don Phillips, chief of Morningstar; John Bogle, founder of Vanguard; William O'Neil, owner of Investor's Business Daily; Ron Elijah of Robertson Stephens; Foster Friess of the Brandywine Fund; and Harry Markowitz, winner of the Nobel Prize for portfolio theory. Each succeeds on Wall Street with a very distinct investing style, writes Stern, a personal-finance expert. Zweig, for example, buys stocks based on his forecasts of the overall market's direction. Navellier uses a fully automated computer system to pick companies. Elijah, on the other hand, focuses on business and social trends. Gabelli looks for a catalyst--some special event--to drive a stock. Despite their differences, they share a tendency to adhere to their investing principles through good times and bad. "The key is to decide on a discipline and stick to it," Stern writes. "Most important, discipline and knowledge are the keys to successful investing."

Experienced investors will enjoy the insights provided by the interviews with these market pros. For novice investors, Stern also devotes four chapters to some basics about personal finance, including the differences between fundamental and technical analyses and how to interpret a balance sheet, set goals, and understand risk. Stern's goal is to help people develop and refine their own investing styles. His "20-point checklist" for picking a winning stock is worth studying by itself. An easy and provocative read, Secrets of the Investment All-Stars just might be your ticket to the hall of fame. --Dan Ring