One sentence summary
A comprehensive guide to stock picking by the financial experts at The Motley Fool.
Book genre
Personal finance, investment and stock market.
Main topic of the book
The main topic of the book is how to identify and invest in profitable stocks using the strategies of rule breaking and rule making.
Key ideas
- The key difference between a rule breaker and a rule maker stock and how to identify them.
- The importance of long-term thinking in the stock market.
- The role of disruptive technologies and changing consumer behavior in stock selection.
- The importance of diversification and risk management in building a strong portfolio.
- How to analyze a company’s financials and assess its growth potential.
Main parts of the book and a short summary
- Part One: Stock Picker’s Primer – This section introduces the concept of rule breakers and rule makers, and lays the foundation for understanding how to identify and invest in these types of stocks.
- Part Two: Rule Breakers – This part focuses on the characteristics of rule breaker stocks and how to find them. It also includes case studies of companies that have successfully broken the rules and achieved significant growth.
- Part Three: Rule Makers – The focus of this part is on the stability and longevity of rule maker stocks and how to spot them. It includes a discussion on competitive advantages, profitability, and long-term sustainability.
- Part Four: Enhancing Your Profile as a Rule Breaker – This section delves into the mindset and habits of successful rule breakers, and how to apply these principles to your own investing strategy.
- Part Five: Enhancing Your Profile as a Rule Maker – This part expands on the previous section, but with a focus on rule maker investing. It also discusses the importance of diversification and risk management.
- Part Six: Incorporating the Wisdom of No Limit Love – The final part of the book talks about how to align your investing strategy with your personal values and beliefs, and how to use your wealth to make a positive impact in the world.
Key takeaways
- Identify the key differences between rule breaker and rule maker stocks.
- Learn how to analyze a company’s financials and assess its growth potential.
- Understand the importance of long-term thinking and risk management in the stock market.
- Thoroughly research and diversify your portfolio to minimize risk and maximize returns.
- Use your personal values and beliefs to guide your investing decisions.
Author’s background and qualifications
Tom Gardner is the co-founder and CEO of The Motley Fool, a multimedia financial services company. He has been featured in numerous media outlets including The Wall Street Journal, Financial Times, and CNBC, and has authored several books on personal finance and investing. Tom and his brother David Gardner, co-authored this book based on their experience as successful investors and as co-founders of The Motley Fool.
Target audience
This book is targeted towards beginner and experienced investors who want to learn how to invest in profitable stocks using the rule breaking and rule making strategies.
Publisher and first publication date
The Motley Fool’s Rule Breakers, Rule Makers: The Foolish Guide to Picking Stocks was published by Simon and Schuster in December 2015.