“Maverick Investor” is a Beginner’s Guide to Smart Investing

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.

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