[.ca] The Battle for Investment Survival (ISBN 143255459X)

Not much of a surprise ending:
After reading this book, all I can say is "wow." That was one long book. It was full of so much information on stocks and when to buy and sell. But the information was not the same old stuff that I have heard before, I was introduced to a whole new theory of buying when everyone else says that you shouldn't because you have sound information on your side. Loeb also talked about putting a good amount of your available money in a smart investment, and watch that investment carefully. A main point that he stressed over and over was not to invest just to invest, only invest when you are going to put in the effort to make money. I thought that it was a difficult book to read because it was about economics, but I think that it might come in handy once I do get money to invest. It was written a long time ago, but I think that the advice that Loeb gives in the book can still be used today.

My cornerstone on speculation and investment:
I've read many recently published books on how to profit from the financial markets. Too many of them leave me feeling like I wasted my time and money. I decided to go back to the "classics"--Schabacker, Edwards and Magee, Graham, Hamilton, Rhea, and of course, Gerald Loeb. The more I read these "classics" of investment literature, the more I see the market hasn't fundamentally changed at all. All of those books have taught me something important, but I will always have Loeb's "Battle for Investment Survival" close to the top of my list. Loeb demonstrates he is fundamentally honest. Unlike most books, that get you to think becomming a millionare through daytrading is easy, Loeb teaches that there is no such thing as "easy money" in the financial markets, nor are there "safe investments" (bonds) as the value of money is constantly depreciating. He also teaches that there are NO guarantees, and that most people WILL lose money regardless of what they do. I think this is true, but most people cannot face it--even those "efficient market" types who advocate the buy and holding of index funds. (I believe Loeb would be a big fan of Exchange Traded Funds, however) So, what is one to do in order to preserve purchasing power? His answer: intelligent speculation and the ever-liquid account. To speculate intelligently, Loeb advises focusing on actively traded stocks--not illiquid "penny stocks" for your SPECULATIVE activities. Let's be clear--Gerald Loeb is no "buy and hold" advocate. Loeb could be considered an advocate of the "relative strength" approach--before the concept of "relative strength" ever existed. The moment your stock is failing to deliver superior profits, and you have no fundamental reason to believe its uptrend will continue, he advises you sell and look for another. If you can't find anything interesting, or the market is going down--you stay in cash. For Loeb, you MUST avoid catastrophic losses like those sustained in the crash of '29. A stock that doesn't rise (or fall if you like to short) is a waste to be avoided. Loeb is not a fan of too much diversification. He thinks it is a crutch that guarantees mediocre performance. His most important teaching would focus on money management (what we would now call "asset allocation"). Loeb would consider it foolish to allocate a significant (more than 50%) of your capital to stocks. You always need a cushion for those inevitable losses in trading operations. I've taken Loeb's advice to heart. His advice is even more applicable to options trading. By keeping a small amount of money in a volatile asset, and ruthlessly cutting losses, you give yourself a chance to match the market or even outperform, but with significantly less risk (volatility), due to the large cash reserves. Loeb's advice isn't easy to follow. But making money isn't easy. And by following Loeb's advice, I'm quite pleased.

Times they are a' changing...:
This is a book that was out of demand for a long time, it seems, and is much needed nowdays. Most investment guides that became popular in the last 10-15 years were about the bull market, obsolete now. This outstanding work of Gerald M. Loeb sums up his experience of an active investor all the way from the bull market of 20ies, then the Big Crash, the gloomy 30ies, WW2, until 1965. He managed to survive all major market mishaps and he shares his thoughts with the reader. His preferred audience is perhaps the intelligent investor in tough times. What I learned from him (and it was the first time I ever read these things) - losses should be cut promptly, diversification is usually poor tactics, fundamentals can sometimes be ignored. This is just his opinion of course, read the arguments yourself. A must read on how to survive the recession, IMO.

Timeless advice:
This is one of the most helpful books you can read on stock investing because it provides, in my opinion, the best advice on selling. Loeb's advice to cut losses promptly helped to inspire me to develop the strategy found in my "Investing: More Success With Less Stress", which I consider to be an extension of Loeb's strategy, quantified. No matter what the pros say, the buy-and-hold strategy is obsolete.

Outstanding.:
As one review put it-- this is timeless wisdom and dated info. The book is fascinating and it is like meeting a Great Guru in person.I had watched the market little deeply only for few months.But even with that experience,I can say "Oh ,how true,how true" for many many paragraphs in the book.I have underlined them everywhere.If you care about your money and investment and want to take charge of it, There is no other compassionate Guru you can find other than Mr Loeb.I think his theory works very well in bull markets too. But you have to work very hard,as he rightly cautions. It is worth all the effort. Thank you Mr Loeb for demystifying the Stock market, its perils and opportunities.If one has time, One should forget all the fancy investment theories floating around in popular journals and fashion, and practice Mr Loeb.I think it will work very well for small investors