SENSIBLE STOCK INVESTING
Author Dave Van Knapp
MARCH, 2008: FROM KIRKUS DISCOVERIES, NIELSEN BUSINESS MEDIA
Van Knapp offers a friendly and comprehensive system for investing in stocks.
"It may come as a surprise, but one does not have to be a financial genius, good at math,
a trained economist, or have an MBA to beat the market," writes Van Knapp in this
cheery, methodical, and candid guide for putting your money to work in the stock market.
Van Knapp has boiled his system down to three concentrated elements: picking the right
companies, choosing the right price and intelligently managing your portfolio. It is a
system that requires some attentive engagement in the process, though it's also
streamlined for ease.
[Van Knapp] has concocted a scoring system to help decide which companies to own
shares in...He counsels prudence.
A levelheaded, lucid guide to stock investing.
FEBRUARY, 2007: FROM BUSINESS STRATEGIES MAGAZINE:
Whether you have hired a firm to help you manage your money or if you are an individual
investor--it's best to take full responsibility of your finances so that you can live the
lifestyle of your choosing. Sensible Stock Investing discusses fundamentals in a
descriptive, thorough, and usable manner.
The best thing about Van Knapp's approach is that the bulk of it resides in creating
criteria. [With so many options available,] one needs a process to de-select as fast as
possible....The DVK Group, Inc., designed what they call the Sensible Stock Investing
Easy-Rate scoring system[, specifically engineered for the individual investor.]
If you are looking for a get-rich-quick scheme, you will have to go elsewhere. Sensible
Stock Investing is a pragmatic approach to help you, as an individual investor, pick value
and manage your stocks for the long view.
SENSIBLE STOCK INVESTING has achieved the maximum 5-star reader
ratings on both Amazon.com and BarnesAndNoble.com.
THESE ARE EXCERPTS FROM REVIEWS BY READERS LIKE YOURSELF:
Understandable, in-depth and detailed
I wanted a complete investment "system" that was logical and reflected my views on well-
reasoned investment fundamentals.
I found everything I was searching for in this book. There is a fine balance between being
technical enough to accurately represent a stock's value and market conditions and
readily understandable text. Mr. Van Knapp certainly achieved that for me.
I consider myself a "value" investor at heart and I needed a book that spoke to me on that
level. I didn't want rosy predictions of how much money I would make. I'm realistic enough
to know I'll make mistakes, but having the information in this book gives me the
confidence to know when it's time to buy as well as sell. Mr. Van Knapp also includes two
real-world portfolios in the text. These aren't hypothetical portfolios manipulated to
illustrate his points. They are real-money ($50k and $40k) investments in actual stocks,
with performance information as well as reasoned discussion on his criteria for making his
purchases. READER REVIEW, AMAZON.COM
Excellent book on stock investing
First, what this book is NOT:
A primer on asset allocation or asset classes other [than] individual stocks. If you only
invest in bonds, cash, and mutual funds, this book is not for you.
What this book IS:
A primer on evaluating stocks to consider buying. The author explains what types of
companies to look for. The author discusses developing the company's story, how a
company fits into megatrends, how to determine a dominant company, and how to
evaluate the company's financials. He has developed a scoring system that is easy to
understand and flexible, so an investor can tweak the system to their own values.
A primer on stock valuation, primarily using valuation ratios. Again, there is an easy to
use scoring system.
A primer on managing your portfolio. Several stock types are discussed, including
aggressive Type A stocks, momentum stocks, dividend stocks, blue chips, and ETFs.
Concentration vs. diversification are discussed including a recommendation for a
reasonable number of stocks to own. When to buy and sell, market timing (based on eight
easy to find market indicators) and investing strategy are also discussed.
The author has invested in two real money portfolios, one aggressive, the other more
conservative and dividend-oriented. He discusses his actual results for the two portfolios
and lessons learned. The portfolios were started in 2001 and 2002, hardly during a bull
market, so the better-than-market results are not simply a result of favorable market
In all, a good stock picking book with an easy to understand system for evaluating
potential companies, valuing their stocks, and managing a portfolio. READER REVIEW,
A system that works
As an investor who believes in many of the valuation techniques of Buffett and Peter
Lynch, I was constantly trying to find a way to properly grade a stock. Finally, someone
tied all the important components together in an easy-to-use scoring system that takes all
the emotion out of investing. David Van Knapp has written an understandable and
extremely well detailed book that walks you through all the important points necessary to
determine 1) If the stock is under or over valued, 2) Is the timing right to purchase it, and
3) When it's time to get out.
Since I began using Mr. Van Knapp's system, my returns have dramatically improved.
Using his dividend strategy earlier this year during the exceptional market volatility we
experienced, I outperformed the exchanges by 5%.
I would highly recommend this book to seasoned veterans and new investors alike as a
staple for your library. Sensible Stock Investing is destined to be included with some of
the great works of Graham, Lynch and Siegel. READER REVIEW, AMAZON.COM
The best book on stocks I have read so far!
This is certainly the best book on investing in stocks for the individual that I have read so
far. Everything is logically thought out and very clearly explained. I highly recommend it to
anyone looking to get into individual stock investing who would like to make educated and
sensible decisions that really pay off. Reading it has taken me from a complete newbie to
having a competent understanding of how the stock market works with an intelligent, easy
to follow system for picking successful companies that beat the market with minimal risk.
This book is definitely everything it claims to be and a worthwhile investment. READER
A virtual bible for the individual investor
This book stands head and shoulders above the great bulk of what I've read on...stock
investing...[T]his book's premise is that the small individual investor actually can beat the
market, not through some secret, author-discovered formula, but by applying logic,
discipline, and a bit of effort. If you believe, as I do, that knowledge and diligence tend to
be rewarded in the Market as in life generally, you're going to like this book. The author
does a great job of smoothly guiding the reader through a potentially dry and difficult
subject, without presuming any particular prior knowledge or experience. In fact, the book
could almost serve as a textbook on how the stock market operates if it weren't such a
quick and enjoyable read. The contents are well organized, and the writing is clear and to
the point. READER REVIEW, AMAZON.COM
Relief at last!
Out of all the investment books I own, "Sensible Stock Investing" is the only book that has
finally brought together an understanding of how, what, why, and when a stock should be
considered for purchase. Not just a "stock screen evaluation", like so many books are, but
an explanation of how various criteria [are] brought together and used to give an
unbiased and "sensible" direction before making a commitment. This book has allowed
me to feel confident, organized, and safer while having an intelligent control of what I
analyze and compare. After scrambling in various directions through reading numerous
books and newsletters, "Sensible Stock Investing" has provided me with all the tools
necessary to establish an orderly and educated direction of investment choices based on
knowledgeable, well-built groundwork. It is both exciting and liberating to finally learn how
to approach investing based on my own calculated and informative decisions.
Mr. Van Knapp has written a book that allows a person to navigate technical information
in a step by step process using an "Easy Rate System". It will allow you to compare a
stock against its own strengths and weaknesses, and score it accordingly. The straight-
forward explanations of the figures used will give the reader an effortless understanding
of these fundamentals. Knowing what information to look for and how to utilize it becomes
a simple but thorough process. "Sensible Stock Investing" also includes added
information on different stock groupings and their level of volatility, how to evaluate the
current condition or trend of the Market, managing your stocks and much more. Through
this book, Mr. Van Knapp has succeeded in making the market place an enjoyable and
less exasperating environment for everyone. A well earned five stars! READER REVIEW,
This book does the impossible
The author does a superb job of shedding light on a complex subject in a way that's
immediately accessible to beginners. He lays out the material clearly, writing in plain
English to the extent possible, neatly billboarding the points he wishes to make. Then he
makes his points efficiently and drives them home with (welcome) repetition, striking the
right balance between simplicity and nuance. Wise investing still takes work -- there's no
easy way around that -- but this book details a method that any reasonably competent
person may follow. I will refer to it often. Wish it had come out 20 years earlier! READER
Great for someone just starting out
Well written and easy to understand....I've...gained a decent understanding of stocks and
how to look at them objectively. READER REVIEW, AMAZON.COM.
Terrific money-making guide!!
Sensible Stock Investing...is a well-written, easily understood, and easily implemented
guide for stock market investors. As a business professor, I'm familiar with the common
theories debunking long-term profiteering in the market. People say the same things
about betting on horse races. Yet, it's important to understand that these theories deal
with averages -- particularly, the average investor. Fact is, some ordinary individuals can
and do make money (i.e. above average returns on a consistent basis) betting on horse
races -- and/or in the stock market. [The author] is one of these people. He's also a gifted
writer and teacher, who has taken the time to share his experiences and lay out a
'sensible' system for individual stock investors. [This book] is the most readable, concise,
and workable guide I have seen in years. It cuts through the clutter of mind-numbing data,
conflicting 'expert' opinions, and investment advisor marketing to present a rational and
easily-implemented do-it-yourself system. READER REVIEW, BARNESANDNOBLE.COM
A useful guide to buying good companies at reasonable prices
The author uses a "points system" to identify potential investment opportunities...Since
the rating system takes multiple factors into account, a low score in one area does not
automatically exclude a company from consideration...Points are also awarded to
companies that have compelling stories. Is the company a dominant player in its industry?
Does the company have pricing power? Answers to questions like these will begin to
narrow the range of possible investment candidates...The book also includes a sample
stock watch list and sample worksheets for monitoring portfolio performance and for
tracking market indicators, all nicely tailored to meet the requirements of the time-pressed
investor. READER REVIEW, AMAZON.COM
A book whose time has come
As a woman who has recently become interested in stock investing, I found this work,
Sensible Stock Investing, to be an invaluable guide in assisting me through the incredible
maze of investing in the stock market. The author takes the time to explain his reasoning
in clear, concise language without talking down to the reader. His thorough explanation of
his methodologies, backed up by concrete examples, is hard to beat. So many times, the
so-called experts recommend a particular stock or downgrade another without actually
putting their money on the line. This author takes a different tack--he actually has "skin in
the game" and that makes for fascinating reading. I highly recommend this book. READER
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