August 13, 2023
For my next book, I tried to simplify the content of my earlier books while providing novice investors with a guide to a lifelong portfolio they can manage independently.
This book will be available in a couple of weeks. In it, I share insights from my extensive experience in the financial industry, reflecting on key lessons and insights gained over the years.
In the end, I express my regrets about not earlier in my journey fully understanding the distinctions between investing, trading, speculation, and gambling. True investing involves discipline, self-reliance, and a long-term perspective. Patience, perseverance, and continuous learning are essential for success.
Although the book is written for novices, I hope retirees and investors of all levels use their financial knowledge and this book to educate and empower future generations. Passing on this knowledge is a gift that will echo through time.
Here is a summary by chapter.
Chapter 1: Introduction
- You don’t have to rely on Wall Street for investing. I’ll guide you to develop a unique investment approach that will last you a lifetime.
Chapter 2: Navigating Your Investment Landscape
- Learn about the tactics Wall Street uses and how they affect you. Take control of your financial journey.
Chapter 3: Maverick Principles
- Follow core principles: treasure assets, commit long-term, and keep learning. Build a solid investing foundation.
Chapter 4: Quality Companies and Critical Thinking
- Choose stable, quality companies. Focus on financial stability, valuation, competitive advantage, and more.
Chapter 5: Growth vs. Value Investing
- Understand the difference between growth and value investing. Choose based on your goals and risk tolerance.
Chapter 6: Investing for Income
- Maximize income with dividend-paying companies. Consider stability, sustainability, and dividend reinvestment.
Chapter 7: Securities vs. Physical Assets
- Securities investing differs from buying physical items. Value personal involvement and decision-making.
Chapter 8: Maverick Investor Mindset
- Develop mental strength, long-term thinking, continuous learning, interdisciplinary skills, and knowledge gathering.
Chapter 9: The Power of Compounding
- Start early, be consistent, reinvest earnings, diversify, stay invested, minimize fees, optimize taxes, and rebalance.
Chapter 10: Fusion Analysis
- Blend fundamental, technical, quantitative, and economic analysis for well-informed decisions.
Chapter 11: Building Your Maverick Portfolio
- Tailor your portfolio based on eight Dow 30 companies aligned with specific goals.
- To begin, I selected Apple (AAPL), Chevron (CVX), Coca-Cola (KO), UnitedHealth (UNH), and four others.
- I avoided struggling companies like Walgreens Boots Alliance (WBA) (Declining retail, inflation impact), Verizon Communications (VZ) (Saturated wireless market), and IBM (IBM) (Facing competition, AI efforts unproven.)
Chapter 12: Customizing Your Portfolio
- Your unique strategy matters.
- Personalize your portfolio with other Dow 30 possibilities like Microsoft (MSFT), Johnson & Johnson (JNJ), Goldman Sachs (GS), and Procter & Gamble (PG).
Chapter 13: Understanding Market Structure
- Diversify companies based on industries. Monitor peer groups for competitive insights.
Chapter 14: Trading like a Maverick Investor
- Use Technical Analysis indicators like MACD and RSI for well-timed trades.
- Focus on your time horizon with a personalized strategy.
Chapter 15: AI in Financial Analysis
- AI revolutionizes financial analysis. Analyze complex data, gain insights, and understand investment opportunities.
Chapter 16: Leveraging SWOT Analysis and AI
- Combine AI and SWOT analysis for data-driven insights and structured evaluation.
Chapter 17: Navigating Economic Reports
- Focus on long-term trends, meaningful economic reports, inflation’s impact, and business conditions.
Chapter 18: Unlocking the Treasure of Fundamental Analysis
- Debt Levels: Assess a company’s debt-to-equity ratio, interest coverage, and debt maturity for financial stability.
- Liquidity: Examine current and quick ratios to gauge short-term financial health.
- Cash Flow: Analyze cash flow and free cash flow to understand cash generation and management.
- Profitability: Use metrics like ROIC to assess a company’s efficiency and profitability.
Chapter 19: Technical Analysis Simplified
- Review weekly Pivot Points, RSI, Stochastics, and Point & Figure patterns for Maverick Investor Portfolio companies.
- Use RSI trend lines and higher lows for buy/sell signals. Monitor 50-line reversals.
Chapter 20: Accumulation/Distribution Zones
- Identify where institutional investors accumulate (upward) or distribute (downward) stocks.
- Incorporate AZ/DZ insights into risk management. Protect capital if stock enters DZ.
Chapter 21: Data-Driven Investing
- Quantitative analysis uncovers patterns in data using math and algorithms for smarter decisions.
- Beginner-friendly methods: Ratio analysis, DCF analysis, Technical indicators, Sentiment analysis, and Machine learning.
- Combine with fundamental analysis and risk management.
Chapter 22: Daily Investment Routine
- Stick to guiding principles, navigate bias, check portfolio, monitor market emotions, key indicators, and engage in the community.
- Customize routine for discipline, knowledge, and portfolio connection.
Chapter 23: Smart Portfolio Analysis
- Evaluate AAPL, AXP, CAT, CSCO, CVX, KO, NKE, and UNH based on performance, valuation, financial health, ownership, and technical insights. Consider alternatives.
- Use TipRanks.com and MarketBeat.com for reports and recommendations.
Chapter 24: Maximizing Income
- Build income portfolio with companies having a Dividend Yield over 3.5%.
- Align portfolio with a yield exceeding treasury yields.
Chapter 25: Guided by TipRanks
- Rely on TipRanks.com for weekly reports, analyst ratings, performance, and insights.
Chapter 26: Guided by MarketBeat
- Use MarketBeat.com for weekly reports on Maverick Investor Portfolio companies.
Chapter 27: Value Line Ranking System
- Strengths: Simplicity, long-term focus, comprehensive coverage, detailed research.
- Weaknesses: Limited factors, subjectivity, timeliness, limited technical analysis.
- Use Value Line rankings along with other research tools.
Chapter 28: Value Line VGI Rankings
- Strengths: Historical use, systematic approach, easy to understand and to explain to friends and family.
- Weaknesses: Limited scope, subjectivity, lack of transparency, limited coverage.
- Use VGI rankings alongside comprehensive analysis.
Chapter 29: Analyzing Apple (AAPL) with all you need to know to start
- AAPL Value Line Ratings: Timeliness 2, Safety 1, Financial Strength A++.
- SWOT Analysis: Strengths, Weaknesses, Opportunities, Threats.
- Incorporate Value Line, Wall Street, and SWOT analysis.
Chapter 30-35: Analyzing CAT, CVX, UNH, NKE, and AXP the same way
Chapter 36: Managing Cash with JPST
- Use JPMorgan Ultra-Short Income ETF (JPST) for bearish trends.
- Short-term income, low risk, active management.
Chapter 37: Achieving Buffett or Lynch Performance
- Learn from legends, focus on growth, patience, research, and long-term perspective.
Chapter 38: Intra-week Alerts for Maverick Investor
- Focus on Dow 30 stocks, AZ/DZ alerts, and buy/sell signals.
- Weekly updates, concise summaries, and community engagement.
Chapter 39: FinViz.com Quarterly Report
- Use FinViz.com for stock analysis, Dow 30 companies as a peer group, and quarterly performance reports.
- Analyst consensus, summaries, personalized criteria.
Chapters 40-42: Portfolio Performance, Alerts, Summary to follow at billcara.com
- Monitor Maverick Investor Portfolio, historical alerts, and portfolio performance.
- Weekly engagement, Q&A, ongoing learning.
Chapter 43: Farewell and Thank You
- Recap essential points, building trust, embracing equities, managing volatility.
- Strategies for success, continuous engagement, journey reflection.
- Remember principles, engage at billcara.com, and embrace your newly developed wisdom and skill.
