The Little Book of Picking Top Stocks: How to Spot Hidden Gems

by Martin S. Fridson

Over the period from 2012 to 2021, the one-year total return of the S&P 500 index's top performing stock ranged from 80% to 743%. This outstanding wealth enhancement dwarfs the average return of the index itself. But is there a way to spot stocks like this before they begin their meteoric rise?

In The Little Book of Picking Top Stocks, Martin S. Fridson delivers a practical and easy-to-follow guide to identifying ultra-high-return equities. The author identifies the quantitative and qualitative traits of stocks that rose to become the absolute strongest performers in the S&P 500.

In the book, you'll learn why conventional equity research provides limited help in zeroing in on the index's future top issues. You'll also discover important insights into stock selection and the risks it involves, as well as strategies that have actually worked to generate extraordinary profits via stock picking.

The Little Book of Picking Top Stocks helps investors understand an equities market that has become increasingly disconnected from traditional measures of value and growth. It focuses on choosing those securities that have the greatest potential for appreciation over a comparatively short horizon.

Genres: Finance

256 pages, Hardcover

Published May 2, 2023

Reviews

[Shantanu · Rating 3 out of 5]

Each chapter builds on the previous one. Good information about top stocks of the last few years and guidance on how to pick the next possibility.

[Niko · Rating 4 out of 5]

A bird’s eye view of the stock market, with a focus on the S&P 500, from an expert’s perspective. Fridson does a great job of posing a theory and dismantling it to prove another theory’s worth. The writing is succinct, concise, and basic enough for even those not too familiar with the ins and outs of Wall Street to understand.

The book contains both qualitative and quantitative considerations when evaluating the S&P for the potential top pick.

The summary at the end of the book is invaluable.

[Trevor Johnson · Rating 5 out of 5]

Fun, easy read with good, realistic advice

This book scratched the itch I had for finding better ways to swing for the fences with a small percentage of my portfolio.

[JS · Rating 4 out of 5]

Within this disorganized little book, I found some pieces of food for thought.

[Dan Dawson · Rating 1 out of 5]

Pretty bad.

[Ron Cruz · Rating 2 out of 5]

I think I might have expected too much. This book could easily have been a newspaper article with contents from Chapters 4 & 5. I can't recommend this one.

[VJ · Rating 3 out of 5]

Martin Fridson has written a simple book. The book’s theme is simple - Forget abt conventional analysis i.e analysts way of using PE ratio to come up with a Price Target. Martin is in the quest of finding the number 1 stock. Martin comes up with a simple framework with examples on how to find the next top stock like Devon Energy in 2021 or Tesla in 2020. It’s a quick read!!