The Only Three Questions That Count
From Wikipedia, the free encyclopedia
 |
|
| Author | Ken Fisher with Jennifer Chou and Lara Hoffmans |
|---|---|
| Language | English |
| Genre(s) | Finance |
| Publisher | John Wiley & Sons |
| Released | 2007 |
| Pages | 448 |
| ISBN | ISBN 0-470-07499-X |
The Only Three Questions that Count: Investing by Knowing What Others Don't is a book on investment advice. It was released in December 2006 and rose to #9 on The New York Times list of "Hardcover business bestsellers"[1] and #6 on the BusinessWeek best seller list. [2]
[edit] Overview
This the fourth book by Fisher, a longtime columnist for Forbes magazine. In Three Questions, he maintains that because the stock market is a discounter of all widely known information, the only way to make, on average, winning market bets is knowing something most others don’t. The book claims investing should be treated as a science, not a craft, and details a methodology for testing beliefs and uncovering information not widely known or understood. The book’s scientific method consists of asking three questions:
- What do I believe that’s wrong?
- What can I fathom that others can’t?
- What is my brain doing to mislead me?
The first question addresses common investing errors, the second shows how to try and find bettable patterns which others may misinterpet, and the deals with behavioral finance, pointing out cognitive errors such as overconfidence and confirmation bias.
Other issues covered include high P/E ratios; debt; the federal budget, trade, and current account deficits; the U.S. dollar; high oil prices; emerging markets; gold; and the U.S. economy.
[edit] References
- Financial Times
- Forbes
- Canada's National Post
