The Little Book of Sideways Markets: How to Make Money in Markets that Go Nowhere
What I propose in the book (and practice in life) is active value investing. Instead of being a market timer, I’m a buy-and-sell investor, with a focus on valuing individual stocks.Find stocks that lie within your circle of competence, analyze them as to whether they meet your qualitative criteria (such as competitive advantage, strong balance sheet, high return on capital, shareholder-friendly management. etc.), value them, determine an appropriate margin of safety (discount to fair value, which should be increased in range-bound markets), and you’ll thereby arrive at a price at which you’d want to buy them.
“Vitaliy Katsenelson has combined analytical rigor, market history, and common sense to produce a valuable, highly readable guide for investors seeking to navigate the investing environment of today and the years to come.” —Michael Santoli, columnist, Barron’s
“It’s hard to talk clearly about investing and make sense to ordinary readers at the same time. Katsenelson gives a lucid explanation of today’s markets with sound advice about how to make money while avoiding the traps that the market sets for exuberant bulls and frightened bears alike.” — Thomas G. Donlan, Barron’s
“A thoroughly enjoyable read. Provides a clear framework for equity investing in today’s ‘sideways’ and volatile markets useful to everyone. Clear thinking and clear writing are not often paired – well done!” — Dick Weil, CEO, Janus Capital Group
“The bible for how to invest in the most tumultuous financial market environment since the Great Depression. A true guidebook for how to build wealth prudently.” — David Rosenberg, Chief Economist & Strategist, Gluskin Sheff + Associates Inc.
“A wonderful, grounded read for new and seasoned investors alike, Katsenelson explains in plain English why volatility and sideways markets are a stock picker’s best friend.” — The Motley Fool, www.Fool.com
“This book reads like a conversation with Vitaliy: deep, insightful, inquisitive, and civilized.” — Nassim Nicholas Taleb, author of The Black Swan