Just Released – Fourth Edition of “The Maxims of Wall Street”

As J. Paul Getty, America’s first oil billionaire, said, “Sound stocks purchased when their stocks are low and held for the long pull are very likely to produce high profits through dividends and increases in value.”

That quotation and 800 others are included in my classic collection, “The Maxims of Wall Street.” I took some copies with me on my recent Politics & Your Portfolio cruise to New England, and one attendee, John O’Brien of Florida, bought a copy and read it on the ship. He came up to me and said, “There’s more education in this book than with four years of college!”

SkousenOBrienMaxims4

Mark Skousen looks on as subscriber John O’Brien of Florida reads “The Maxims of Wall Street” on the deck of Eagle’s/FreedomFest’s Crystal Symphony cruise (New England/Canada).   
“There’s more educational value in Maxims than with four years of college today,” he said. 

New Fourth Edition Arrives on Thursday — at Half Price!

The Maxims of Wall StreetI’m happy to announce that we have sold out of the third edition, and I’ve gone back to press with the new fourth edition. The new edition will arrive on Thursday! It mentions more than a dozen new quotations and authors, such as this one: “The stock market takes the stairs up and the elevator down.” So true!

For 30 years, I’ve been painstakingly collecting all the wise old adages, proverbs, humor and legends on Wall Street, based on in-depth interviews with old timers, reading rare financial books and my own experiences of more than 40 years in the financial markets. They include famous lines from Warren Buffett (“If you wait to see the Robin sing, Spring may be over”)… J. P. Morgan (“Troubled waters make for good fishing”)… Richard Russell (“In a bear market, the winner is he who loses the least”)… and Steve Forbes (“Everybody is a disciplined, long-term investor until the market goes down”).

I divide the book into various categories: beating the market, diversification vs. concentration, value vs. growth, bulls vs. bears, black swan events… doomsayers and cassandras… hot tips and inside information… chartists vs. fundamentalists… taxes and tax havens… inspiring “pearls of wisdom” and even a few short stories.

The book has been endorsed by Warren Buffett, Jack Bogle, Dennis Gartman, Alex Green, Richard Band and Bert Dohmen. “Maxims” is nearly 300 pages long. The retail price on Amazon is $24.95, but my followers pay only $20 for the first copy, and all additional copies are only $10 each. All are personally autographed and mailed to you for free (I pay the postage). For all foreign orders outside of the United States, add $10 per book.

I’m offering this “half-off” deal because I know “Maxims” makes a great gift for friends, relatives, business colleagues, investors, your favorite stockbroker and money manager. Many people order a whole box (32 copies). The price of a box of books is only $300 postpaid, less than $10 each. As Hetty Green, the first female millionaire, said, “When I see something cheap, I buy a lot of it!” To order your copies at this super discount, call Ensign Publishing toll-free at 1-866-254-2057 or go to www.miracleofamerica.com/maxims.

 

Last Chance to “Crash the Party!”

Come “Crash the Party,” Saturday, Oct. 19, Westin LAX: Martin Truax, a long-time friend and senior vice president at Raymond James, is organizing a one-day “Crash the Party” seminar on Saturday, October 19, 2013, at the Westin Los Angeles Airport Hotel in recognition of the 1987 crash and my birthday. This is an ideal location, as travelers can simply fly into LAX and take the Westin shuttle to the hotel (only $109 a night). In addition to Martin Truax and me, speakers include Wellington Letter editor Bert Dohmen, Washington insider Floyd Brown, money manager Adrian Day, #1 real estate guru Jack Reed, coin expert Van Simmons and Everbank President Frank Trotter. We’ve also just confirmed Jeff Phillips, venture capitalist and investment banker extraordinaire, who has made many of us (including me) extremely wealthy with his cheap stock picks. He’s going to give us two recommendations at our one-day seminar. The price is only $99 per person, with $50 for additional guests, for this event. Come crash the party! Find details at www.lainvestmentconference.org. To register, call Steve at 678/333-5361, or email lainvestconference@att.net.

Video on “Maxims of Wall Street”

Here’s a new 4-minute video of my talking about my new book “The Maxims of Wall Street”:  http://www.moneyshow.com/video/video.asp?wid=8168&t=3&scode=027326 

We’re making a special offer for those who want to buy additional copies for gifts:  You may $20 for the first copy and only $10 for each additional copy.  All copies will be autographed.  To take advantage of this half-priced offer, you need to call Eagle Publishing, 1-800-211-7661, and mention code MAXIME. 

“Maxims” makes a great gift to students, investors, stockbrokers, clients, and anyone interested in Wall Street.  As Rodolfo Milano of Dominick & Dominick in Miami wrote me last month, “Maxims is the perfect gift for my best clients.”  I’ve had subscribers buy 3, 4, and 6 copies at a time. 

For more information on how to order, click here.

My Run-In With the SEC

Last Thursday I was at Utah State in Logan, where I delivered the luncheon address at the annual Partners in Business conference there.  It is the first time I’ve been invited to speak before a group of professional accountants.  Beautiful setting in the mountains.

In the morning session, the chief accountant of the Securities & Exchange Commission (SEC) from 2007 to 2011 (he’s now works for Price Waterhouse but said he wants to come back as an SEC commissioner) spoke for nearly an hour on the “Current Developments of the SEC” and not once mentioned the $64 billion Bernie Madoff scandal or how it has affected SEC policy (new whistleblower program, etc.).

Needless to say, I was incensed. 

After his talk, he took questions, and I asked, “I’m amazed that in your entire talk you never once mentioned the biggest scandal in SEC history and biggest financial fraud ever committed on Wall Street.  Is it because you are too embarrassed to talk about it?  Do you think that investors who lost money in the Madoff scandal should have the right to sue the SEC for negligence?”

The SEC man looked shaken and visibly unset.  He strongly defended the SEC and said he sacrificed his salary to work for the SEC, and the SEC gets hundreds of letters about potential fraud cases, and can’t police them all, but the SEC does a highly competent job for the American people. 

He made no attempt to express sympathy for the victims of the Madoff crime ($64 billion fraud), or what changes the SEC has made because of its massive failure.  When I brought up Harry Markopolos and his book “Nobody Would Listen,” about how Markopolos the repeatedly warned the Boston and New York offices about Madoff’s ponzi scheme, he was silent. 

“Is that your apology?” I asked.

“Apology?  I don’t need to apologize and will never apologize for what happened.  In fact, you should be thanking us for what we did,” he said with considerable emotion. 

Half the audience applauded!

Can you believe the arrogant of this guy?  The SEC is out of control, I fear.  Why couldn’t he just acknowledge that the SEC made a huge blunder and has adopted a number of policies and rules to make sure it never happens again?  Instead, he adopted the “no apology” and “let’s not talk about it” routine.

Needless to say, my tough questioning was the talk of the conference, and I believe my luncheon speech was energized by the earlier confrontation with the SEC man. 

The new “whistleblower” program of the SEC — in direct response to the Madoff scandal — awards up to 30% of the fines to anyone who directly leads to the conviction of anyone engaging in insider trading or other financial fraud, with a minimum payment of $1 million.  I fear this new aggressive whistleblower program at the SEC will be abused and will create spy networks throughout corporate America and Wall Street, thus hampering more the long-term recovery of the economy. 

All in all, I was surprised at how defensive the accounting profession has become.  I may be misjudging the profession based on just one conference, but it seemed to me that the accountants focused primarily on compliance, auditing, detecting fraud, etc., rather than ways to make companies more profitable and fiscally sound.

Your in (Financial) Liberty, AEIOU,

Mark Skousen

Maxims of Wall Street — New Book Now Available!

AFTER 30 YEARS IN THE MAKING, ANNOUNCING AN HISTORIC FIRST…

Mark Skousen with the bull and bear

THE MAXIMS OF WALL STREET
A Compilation of Financial Adages, Ancient Proverbs, and Worldly Wisdom

By Mark Skousen

“Bears Make Headlines, Bulls Make Money”

Attention all investors, subscribers, stockbrokers and money managers!

For nearly 30 years, I have been collecting all the old wise adages, proverbs, and legends on Wall Street, based on in-depth interviews with old timers, reading rare financial books, and my own experiences in the financial markets. (I’ve been writing Forecasts & Strategies since 1980, when President Reagan was elected.)

“Maxims” is destined to be a classic reference that you will read with delight for years to come, and an ideal gift to investors, stockbrokers and money managers.

“Maxims” is the closest thing to Wall Street scripture ever created. The work contains:

  • Over 800 adages, by such notables as Warren Buffett (“If you wait to see the Robin sing, Spring may be over”)….J. P. Morgan (“Troubled waters make for good fishing”)….Humphrey Neill (“The public is right during the trends but wrong at both ends”)….Richard Russell (“In a bear market, the winner is he who loses the least”)….and Steve Forbes (“Everybody is a long-term investor until the market goes down”).
  • Old Timer’s stories like the “trading sardines”…..where are the customer’s yachts?…..the gold bugs…..commodity traders…..The origin of “blue sky”…
  • Famous lines from Baron Rothschild, Ben Franklin, John D. Rockefeller, Joe Kennedy, J. P. Morgan, Bernard Baruch, John Templeton, Jesse Livermore, John Maynard Keynes, Ben Graham….
  • Sage advice on beating the market, diversification vs. concentration, value vs. growth, bulls vs. bears…..black swan events…..day traders…. doomsdayers and casandras….plungers and the peakcocks….hot tips and insider information….Losing money and missed opportunities…Wall Street vs. Main Street…chartists vs. fundamentalists….leverage and debt….privacy and government….taxes and tax havens….inspiring “Rich Man’s Pearls of Wisdom”…and intriguing short stories such as “The Extra-Ordinary Life of Warren G. Hardaway.”
  • Quotes from the profound to the profane: “Nobody is more bearish than a sold-out bull” and “In the land of the blind, the one-eyed is king”….“To err is human, but to be paid for it divine” and “Definition of obscene profits — something you always hear about but never experience yourself.”

How to Order Your Special Numbered Copy

“Maxims” is nearly 300 pages long, published handsomely in a special limited edition in leather and gold lettering. Only 1,000 copies were printed in this first edition. Each copy is numbered and autographed. Choose your favorite number (anywhere from 10 to 1000; the first ten are already taken). Price is only $24.95 plus $5 S&H, or a total of $29.95. Once the 1,000 copies are sold, the first edition will no longer be available. To order, call or send to:

Eagle Publishing, 1-800-211-7661
One Mass. Ave. NW, Washington, DC 20001

When you call, mention code MAXIMH. And be sure to mention your favorite number.

IMPORTANT NOTE: “MAXIMS” IS NOT AVAILABLE IN BOOKSTORES OR AMAZON.COM. You can only order this book through my publisher, Eagle Publishing, 1-800-211-7661.

I’ll end with an appropriate quote from Ben Franklin: “Genius without education is like silver in the mine.”

I guarantee you’ll be a better investor by frequently reading “Maxims of Wall Street.”

Bullishly yours, AEIOU,

Mark
Mark Skousen
Producer, FreedomFest
“The world’s largest gathering of free minds”
www.freedomfest.com
July 14-16, 2011, Las Vegas

P. S. I will be giving my first talk on “Maxims of Wall Street” at FreedomFest, followed by an autograph session. We are expecting over 2,000 attendees, so I urge you to join us now by going to www.freedomfest.com or calling 1-866-266-5101.

Crazy Economist Defies Gravity and Generates Infinite Returns!

"You should buy Lubrizol. It's in my Hedge Fund Trader....."

The Skousen Hedge Fund Trader (www.markskousen.com) may now hold the world’s record for best return in one day:  9,100%!  When Warren Buffett announced Monday morning that Berkshire Hathaway bought out chemical company Lubrizol (LZ) for $135 a share, our March $120 call options went from 15 cents to $13.80 almost immediately.
If you annualize it, the calculator can’t handle it; it says the return is “infinite”!

Here’s the full story:  We recommended Lubrizol last October, and were underwater on both the stock and the call options.  The stock was down 7%, and the March $120 calls had lost 97% of their value when Buffett bailed us out.  Subscribers who initially bought back in October made 20% on the stock, and 150% on the calls.  Not bad.

I don’t know if any subscribers bought the March calls (which were due to expire this Friday!) for 15 cents a week before, but if they did, they made 9,100% in one day!

Cheers, AEIOU,
MSkousen

Investment Advice on Citigroup from Mark Skousen

“Citigroup (NYSE: CStock Charts and Research Links4.840.14) used to be the world’s #1 bank; it is now ranked #15 after the financial crisis,” points out long-standing investing and trading expert Mark Skousen.

Despite the financial institution’s troubles, the advisor ranks the bank as a speculative buy in his premium Hedge Fund Trader service. Here’s his review on IStockAnalyst.

Bankrupt Millionaires

Personal Snapshots
Forecasts & Strategies
October 2000

Bankrupt Millionaires
by Mark Skousen

“In the midst of the biggest economic boom ever, millionaires are going bankrupt.” – Forbes (October 2, 2000)

Last March, I reported the findings of Professor Thomas J. Stanley, author of The Millionaire Next Door and The Millionaire Mind, that the rich are model citizens-frugal, well-educated, balanced, religious and happily married. But according to the October 2 Forbes, a growing number of millionaires are going bust. Doctors, lawyers, accountants and executives are declaring chapter 7 and 13 bankruptcies at record numbers during this time of prosperity, due to bad business decisions, poor budgeting, overuse of credit cards and divorce. I also know a few financial gurus who continue to dispense advice yet are strapped (but I won’t mention any names).

There are several important lessons here:

(1) An above-average income is no guarantee of financial success. Forbes describes individuals earning $300,000 a year, and some with assets exceeding $5 million, going under. Las Vegas singer Wayne Newton was earning a million dollars a year when he went bankrupt in the early 1990s. (He blamed it on his advisors for getting him into leveraged real estate projects.) Earning more money is not the answer to one’s financial problems-living within your budget is.

(2) Open-ended credit card and business debt is a major source of trouble. If you can’t pay off your credit cards every month, you are headed for trouble. Replace them with debit cards or the American Express card, which requires you to pay off your obligation every month.

(3) Avoid margin debt and leveraged business ventures. The majority of busted millionaires made the mistake of getting in over their heads in leveraged real estate deals and highflying stocks. In many cases, greed drove them to put too much of their savings into one risky scheme.

(4) Most importantly, always spend less than you make, year after year. This advice may sound simplistic, but I’m amazed at how often it is violated.

The Best Book on Avoiding Bankruptcy

There are some excellent books on the subject: Rich Man, Poor Man by Robert T. Kiyosaki, The Wealthy Barber, by David Chilton or High Finance on a Low Budget, by my wife, Jo Ann, and me (all available through amazon.com). But the classic work on the subject is The Richest Man in Babylon (New Library edition). I require it in all my investment classes. It tells the story of Arkad: “In old Babylon there once lived a certain very rich man named Arkad. Far and wide he was famed for his great wealth. Also was he famed for his liberality. He was generous in his charities. He was generous with his family. He was liberal in his own expenses. But nevertheless each year his wealth increased more rapidly than he spent it.”

How could Arkad accomplish this financial miracle of being a big spender and yet still grow richer every year? Simple. Whether he earned a lot or a little, he always set aside at least 10 percent of his income, which he religiously saved and invested. He scrupulously avoided living beyond his means. Thus, in times when he earned more, he could afford to spend more-even as he added to his net worth.

My Financial Life Story

I read The Richest Man of Babylon when I was a young adult and have followed it ever since with great success. I started college with $50 in my pocket, but have always lived frugally. I pay cash for everything, including big-ticket items like cars. I seldom buy stocks on margin. I put aside 10%-20% of my income every year through my pension plan and Automatic Investment Plans (AIP) with various brokers. Like Arkad, I spend money liberally on my family, church, charities and other good causes (such as the Foundation for Economic Education). My only major debt was my home, and I paid off my mortgage several years ago, so I am totally debt free. Yes, I invest frequently in high-risk ventures, but I always diversify enough to keep out of trouble.

If you haven’t read The Richest Man in Babylon, I suggest you do so. It is entertaining and enlightening-and will keep you financially straight.