Book Review "The Wall Strip Edge"

Finally got around to finishing Howard Lindzon’s book, it was good.

I will always read a book from someone who makes me laugh and Howard does just that, whether it be on twitter or on his blog. When you add in the fact he actually knows what the hell he is talking about, well that is just a kicker. For a look at Howards current investments, go here.

Lindzon practices an investment philosophy called “trend following”. The book focuses on, as it says “Tends, find them, ride them, get off”. The beauty of the book is that it is produced with real life examples and failures. This is not one of those academic exercises that looks in the rear view mirror and adopts a philosophy to fit the evidence (or lack thereof). The book is a walk through his varied investments, how he noticed the trend, why and when he bought, and why he sold.

He does not bog the reader down with minutia and chart patters. Rather, he walks you through the process of going through your everyday life but with your eyes open for opportunity. What are your neighbors buying? What are the things at school all the kids must have? What items in your own life are becoming indispensable? Investment ideas abound everyday, people just far too often do not recognize what is become a trend and miss an oportunity.

Unlike some books that simply brag of one success after another and omit mistakes, Lindzon gives the reader some of his errors and uses them as a learning experience to illustrate how moving away from what you know and not doing proper investigation can cost you. Some of the best lessons in the book are the mistakes and what was learned from them.

Lindzon preaches that investors find a style that fits them and that they avoid trying to be something they are not.  He does not claim this is the only way to make money in the market. It is for him though. What he does say is that not being yourself and  by not picking a style that suits the reader they are surely headed for disappointment. 

Chapter 10 bears particularly close readin It is about using social leverage to get ideas and learn. He advises turning off CNBC (read about his recent boycott of it here) and instead read blogs and connect with people. He shows the reader how to find bloggers worth reading, how to connect with other investors via facebook, twitter and now stocktwits and how to use them to become better investor (this chapter ought to be expanded for the next book Howard).

Lindzon claims (and I agree) that by turning off the the TV and saving yourself from the apoplectic 8 hours of benign drivel over the todays economic numbers that will be meaningless tomorrow or next week, connect with those who have ideas, who are leaders in their field and who have been successes doing what they do. Social networking allows you to do that. Besides, you can read the days economic numbers in a minute, you do not need them rehashed all day to understand them.  Remember, it is the job of those on TV to keep you near panic so you tune in, it clouds all they do.