More "Brainwashing" Book Reviews

          As the author makes clear, this isn't a get-rich-quick scheme, and he isn't promoting a cookbook approach to buying stocks that you can follow mindlessly on the way to a guaranteed retirement. What he does do is describe a strategy that his own personal experience over the course of decades has shown will consistently generate profits, year in and year out, whether the market is on its way up (seems like a long time ago, doesn't it?) or on its way back down (sounds more familiar.)

          I've got to admit that I was extremely skeptical at first. For example, I found it hard to believe that despite the fact that the author manages roughly a hundred portfolios, he claims to spend only about two hours a day going through the market listings in newspapers preparing a daily action list of potential trades - and spends virtually no time at all once the market opens. But as it turns out, now that I'm extremely comfortable working with the author's method, I now find that I rarely spend more than 30 minutes per day on activities relating to the market. (Admittedly, that's more time than I spend thinking about my mutual funds, but then, I'm not making a profit on my mutual funds.)

          And truth be told, during the deep valleys the market went through in July and October I really began to have second thoughts. All I can say now is that for me, everything the author predicted panned out and I'm way better off than if I'd left all my money in those mutual fund turkeys.

          If you're not satisfied with how your portfolio has been doing, or if you simply want to get control over your own financial destiny, my suggestion is that you read "The Brainwashing of the American Investor", work with some seed money for six months to a year, and see what happens. As I say, it worked for me." [M S Norwalk, CT]

         I started following the methodology in Mr. Selengut's book in March 2002, just before the market began to collapse. Luckily, I was able to minimize the damage because I had begun to diversify my holdings. Then, despite the market's implosion, I began to make money off a few stocks I purchased based on "strict criteria" found in the book. I'm not saying I wasn't anxious about the whole process of making these decisions, but I was encouraged by the intelligence and logic behind the methodology. I started VERY slowly and carefully. To date, I have yet to make less than 10% on any stock I have sold. Of course, I am holding stocks that are down, but I am waiting patiently (sort of!) for these stocks to begin to creep back up, which they invariably seem to do.

          The book is a good read, as well as packed with what I would call Mr. Selengut's "intellectual capital." And, I would give this book 5 gold stars if it had an organized appendix in which the methodology were outlined. I'm guessing the author didn't provide one because it IS important to read the entire book, cover to cover, before you get started investing on your own. So it is merely a case of taking notes along the way! (L. S., East Hampton, NY)