I have long said that the underlying theme to all the greatest investment ideas is simplicity. Railroads connect geographic locations to facilitate commerce and travel. Cars get us from one place to another. Energy powers everything we need. Microsoft Windows makes computers functional for the masses. Google is our guide to searching the Internet.
In Howard Lindzon’s The Wallstrip Edge: Using Trends to Make Money–Find Them, Ride Them, and Get Off, Howard adds practical investing strategies to this core investment philosophy extolled by other world-class investors including Warren Buffett, George Soros, Peter Lynch, and Carl Icahn. The book is easy to read, full of fun stories, and Howard has an entrepreneurial spirit which will leave you excited and inspired to apply his advice.
If I was forced to summarize Howard’s book, I would say:
Ignore distracting opinions in the financial media so you can better see true trends as opposed to hyped noise. Once you spot genuine trends, follow up with due diligence on the company and stock. When the stock exhibits certain characteristics (you must buy the book for Howard’s secret recipe), jump aboard and ride the train while using professional risk management techniques to take profits and cut losses.
The last part of the book is like bonus material. Howard offers his seasoned view on which trends he thinks are timeless, and others that seem to be on the cutting edge. This section gives readers a feel for Howard’s trend-spotting framework and sets the stage to find your next great investment candidates.
Most investment books claim to be for investors of all skill levels, but they are truly more suited for either beginners or pros. Contrary to that, Howard’s book is actually a gem for beginners and pros alike. I would be equally comfortable recommending this book to my teenage cousin or a hedge fund manager. Both will walk away with value.