The Little Book That Makes You Rich – Book Review

by Ryan Guina

The The Little Book That Makes You Rich is part of a series of “Little” investment books printed by Wylie Publishers. Other popular books in this series include The Little Book of Common Sense Investing, The Little Book of Value Investing, and The Little Book That Beats the Market. At roughly $13 each, these books pack a lot of value for their size.

About Louis Navellier: Navellier is one of the most well-respected and successful growth investors of in recent history and this book is a reflection of what he does best – it gives readers a understanding of how to increase wealth by using the same growth investing strategies Navellier employs.

About The Little Book That Makes You Rich: I think this book is very straightforward and well written. The book simplifies selecting growth stocks down to 8 simplified criteria, and gives them to you right up front. Translation – the book isn’t trying to sell anything extra or make you work to find the answers. They are there, you just need to read and apply them.

The 8 selection criteria are:

1. Positive earnings revisions
2. Positive earnings surprises
3. Increasing sales growth
4. Expanding operating margin
5. Strong cash flow
6. Earnings growth
7. Positive earnings momentum
8. High return on equity

One of the most important investment principles in this book is Navellier’s belief that one shouldn’t allow human emotions to become involved in investment decisions. You should not fall in love with stocks or believe “hot stock market tips” you hear from an acquaintance – or anyone else for that matter.

Will this book make you rich? No. No book will make you rich! But I think that after examining Navellier’s track record and reading these investment principles, there is opportunity here. As with every other investment decision, do your research and make your own decisions based on what you think is the right thing to do.

Buy or Don’t Buy: If you plan on buying individual growth stocks, I think this book can be a beneficial addition to your investment library, and at $13, it is a great investment! (pun intended).  😉

Published or updated December 12, 2007.
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