Rule #1 - Phil Town (5 of 5 Discounted Stocks)

Of all the many books I've read over the past year on investing, this is the most comprehensive resource I've found. Phil Town provides a solid foundation for anyone wanting to get into value investing. The value investing strategy is essentially buying stocks when they're cheap and then selling after the market corrects. Town pulls many of his core philosophies from famous investors Billy Graham and Warren Buffet, but updates the ideas for today's market conditions. This book is a great reference for anyone just getting started.

Once you've identified a business sector you're interested in and familiar with, Town helps you to identify particular companies that might make good investments. He guides you through the process of determining whether or not a business is going to continue to grow in the future. Next, he provides methods for determining the true value of the business. If the price per share offered by the market is less than half its value he recommends buying the stock and waiting for the correction. Once it has stopped rising, you sell off and take the profits.

Town's method is simple, concise and enlightening. It is targeted to beginning investors with a relatively large amount of capital who are looking for limited risk and average grow potential. If this is you, I would highly recommend investing some money in this book. You won't regret it.