Book 14: Wade B. Cook - Wall Street Money Machine

Wall Street Money Machine

Wade B. Cook

 Released: April 1st, 1996

 (Was originally written March 30th, 2023)

Book 14 completely for the year.

I found this one in a Goodwill.  It’s older (mid-90’s) and a lot of the world has changed since then.  But still brings some good knowledge and education on how you can do things financially.

Wade B. Cook was from Seattle, and yes he did go to jail because of tax issues.  Doesn’t matter because there are still things to be learned from this book.

- $2 million should be the ultimate goal

- True wealth, from a financial point of view, is simply having enough income to live the lifestyle you want.

- “Start thinking about 10-day returns, or two to three week returns.  At least think monthly.”

- You have to like the company you are investing in

- When investing, ask yourself 5 questions:

1. What does the company do?

2. Is the company exciting?

3. How much debt do they have?

4. What is the break-up value of a company?

5. Where is the exit?

- “Our decisions should be based on conflicting opinions.  If everything is good, if everybody is bullish, if everybody is buying a certain stock, if the institutional investors are jumping in, I have a real problem, because the exit door can get very crowded when opinions turn around.” - Peter Drucker, “The Effective Executive”

- It’s good to have accounts in multiple places.   This way you have access to company projects of various stocks and investments

- “Run where they ain’t.” - Woody Hayes

- Create excess income to add to your asset base (which continues to produce more income)

- Spend your profits, not your principle 

- Margin accounts allow you to enhance your asset base rapidly 

- Be cautious of Margin accounts unless you have extra cash available.  If you put in $10,000, and have buying power of $20,000, only spend $18,000 so you do not get caught behind the eight ball.

- Know your exit before going in

- Rolling stocks are shared that tend to roll between 2 price points.  For example: You purchase 1,000 shares at $2.50 for $2,500.  You then sell at 3.50 for a $1,000 profit.  Pay your commission and earn a couple hundreds dollars

- Stop thinking annual anything and start thinking weekly or monthly

- Options are fixed time investments

- A call is an option with the right to buy

- A put is the right to sell

I learned a lot more, but really want to study deeper and test some things out.  But good for reference.

On to Book 15: Walter Cronkite: A Reporter’s Life