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New paths to investment success
REVIEWS BY BOBBYE MIDDENDORF Educating yourself is the foundation for successful investing. In today's fast-changing markets, investors must consider moving beyond the usual well-worn advice to "buy and hold," or invest "for the long term." To gather fresh ideas, we've consulted several new investing books by experts who have proven their mettle. Readers who pay attention to these alternate voices could be richly rewarded in their search for the best investment returns. Understand the big picture
By John Mauldin Wiley, $24.95 432 pages, ISBN 0471655430
Say goodbye to your boss
By Van K. Tharp, D.R. Barton Jr. and Steve Sjuggerud McGraw-Hill, $24.95 352 pages, ISBN 0071421475
Rich Dad's back
By Robert T. Kiyosaki with Sharon L. Lechter, C.P.A. Warner, $16.95 288 pages, ISBN 0446691828
Bobbye Middendorf writes from Chicago.
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In a book that's drawn the attention of many investment pros, John Mauldin delivers a masterful synthesis of
mountains of data, making his case for where financial markets are heading.
Bull's Eye Investing: Targeting Real Returns in a Smoke and Mirrors Market draws on the author's passion for number patterns, as well as reams of research that illuminate historical trends and show troubling indications of a "secular" (decade-long) bear market—slow economic growth coupled with a falling dollar and rising interest rates. The first 15 chapters focus on the trends, demographics and cycles that are shaping the future. No gloom-and-doomer, Mauldin outlines strategies for investing to achieve what he calls "absolute returns" noting, "Secular Bear Markets are a time to be conservative." In the current "Muddle Through Economy," he advises investors to seek value as they control risks, work with the trends and avoid common mistakes, like holding onto losers. He explains the appeal and inner workings of hedge funds (where the wealthy are putting their money), and outlines the possibilities for a "fund" of hedge funds. Emphasizing that investors should "do their homework" and understand the big picture for themselves, Mauldin provides the resources (including a comprehensive "due diligence" questionnaire) to do so.
Support your 
Want to quit work? In Safe Strategies for Financial Freedom, co-authors Van K. Tharp, D.R. Barton Jr. and Steve Sjuggerud explain how to fulfill that dream, systematically focusing on the importance of passive income (having your assets produce cash flow). When monthly cash flow exceeds expenses, you're financially free. This team of professional investors and newsletter publishers says most people can get there within five years or less. The authors offer strategies appropriate for different markets and situations, covering inflation, deflation, a rising or falling dollar, bear market funds and real estate. They provide a 1-2-3 formula that any investor can use to determine the "state of the market" and decide whether they have a green, yellow or red light to invest. As the lights change, follow some simple guidelines to profitably move in and out of investments. The final section of the book focuses on taking responsibility and getting the kids and grandkids to financial independence at a young age, making financial freedom a multigenerational project.
Continuing his franchise with this eighth volume, investor Robert T. Kiyosaki with Sharon L. Lechter, C.P.A., addresses
those who are serious about taking control of their money and their lives.
Rich Dad's Who Took My Money?: Why Slow Investors Lose and Fast Money Wins! is
packed with the kind of Rich Dad's advice that has made Kiyosaki a wealthy, best-selling author. This time he shares the secrets to achieving ultra-high investment returns, noting that this extreme approach isn't for everyone. By integrating asset classes (business, real estate and paper assets) instead of diversifying, investors build synergies that accelerate leverage while protecting the cash flowing through the asset. Part one includes advice from nontraditional viewpoints: dairy farmers, gamblers, Newton and Father Time, as well as insurance agents and bankers. With those enlightening perspectives, part two shares secrets for power investing, with a focus on cash flow rather than capital gains. Transitioning from saver to educated investor is fun, Kiyosaki says, although he admits that finding good investments is hard work. But by playing this game, not following the herd, and getting your money to work for you, Kiyosaki is convinced you'll learn more as you go along, ensuring a much better shot at success.