Written by the founders of the Motley Fool US, " Rule Breakers, Rule Makers" contains two investment approaches. Rule Breakers are companies which take their businesses by storm, breaking all the industry conventions and changing the rules of the game. Recent Rule Breakers include America Online or amazon. Com; Rule Makers are companies which offer the opportunity to make huge amounts of money over time. These include Coco-Cola, General Electric, Microsoft and Gap. The Gardner brothers apply these approaches to their own market-crushing portfolios which they manage publically on their Web site. The book includes an opening chapter by Chief European Fool David Berger which explains exactly how to apply the book`s approach to British shares, and how to invest in the USA.
Tom and David Gardner cofounded The Motley Fool, a multi-media financial education company, in 1993. Since then they have co-authored four New York Times bestsellers, including The Motley Fool Investment Guide and The Motley Fool's Rule Breakers, Rule Makers.
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I believe this book came out in 1999. I feel as I have a new understanding of what propels growth stocks to unreasonable prices. This book talked about how Steve jobs will turn apple around now that he has came back to apple! This book gives microsoft a 59/60 point scale. This book picked out Amazon as a good company to buy I believe. And lastly this book had yahoo has the leader in search engine, in 1999 I was using yahoo, as this book says you want the leader in a field. Google got big and started taking over and if this book had come out 4-5 years later it would have told you google was the leader in the search engine field with yahoo in second instead of excite.
Warren Buffett say you only need a few winners and when this book came out it was willing to tell anyone who would read it Microsoft Apple Amazon.
Although this book was written 20+ years ago, the principles laid out in this book are still insightful. Many of the equations used likely need updated, but it is interesting to read about certain stocks they say will continue to do well come to fruition, and other stocks they are concerned about are no longer functioning companies. I will definitely incorporate some of the principles laid out in this book for my personal investing.
I think they have a valuable say in the world of finance, yet for most of us, it just isn't practical if you don't have spare income to invest in stocks or if you do invest, you have a social conscience and do not want to put your money where it will do harm. If those items are cleared, the book is helpful.
This book could have been so much shorter and I would have liked it that much better. However, I think it has some good ideas, particularly on some of the metrics for the "rule maker" stocks. I'm going to give it a go and see what happens.
This book shows us how to rightly implement the ‘buy and hold’ investment strategy. Once you follow this strategy, you can surely outperform the mutual funds you can find and invest. Thanks for writing this book for us.
This book blows. I made it through the rule breakers section and couldn't continue. I'm prepare to believe that the Fools have written better books for the novice investor, but this one wasn't it. The investment philosophy they espouse seems to be "invest in companies which will make a lot of money". Alright. Thanks for the tip, guys.
The Rulemaker section (the second half of the book) is more quantitative, and thus, more to my liking. Something that I don't like - the book does not look at valuation, because the authors believe that a great company is worth owning at any price. I just don't subscribe to this perspective.
I read this book when it was first published, it was very relevant. It was written in a very straight forward manner and was easy to understand. I still have it on the bookshelf to this day. Good Read.
Companies can be loosely classified as potential rule breakers, until they die or become tweeners, at which time they either die or become rule makers.