Compound Yield: The Investors Edge in a Traders World

Robert K. Naguszewski, M.D.

Publisher: AuthorHouse Pages: 91 Price: (paperback) $14.95 ISBN: 9781477294598 Reviewed: July, 2013 Author Website: Visit »

Savvy investors can learn a great deal from this investment guide, which Robert K. Naguszewski describes in the introductory pages as a “strategy that combines high-yield investing with safe trading to progressively produce increasing income.”

An internist and neurologist, Naguszewski was drawn to the compound-yield strategy because of its scientific objectivity and clarity. Unlike conventional strategies, where buy and sell decisions are often made on unreliable emotional factors, the author grounded his strategy on logic and mathematical certainty. Emotional buying, he says, interferes with results and can be destructive. It is “reactive, and when investors react they are teed up for slaughter,” Naguszewski asserts.

This is not a strategy for newbie stock market dabblers, but rather for sophisticated investors who have the knowledge and confidence to successfully manage this kind of portfolio – a point that should have been made in the book’s initial pages rather than at the end of an introductory section. To make it work, rather than offer quick-buck tactics, he says it takes time, discipline, and most important, an understanding of all the fine points of compound yield investing, which involve the mathematics of interest, mechanics of taking profits, position sizing, sizing trades, and much more.

A distracting yet minor quibble is the author’s unsubstantiated assertions in its opening pages. Naguszewski writes that “If the strategy here is adopted by enough people (and I do hope millions will do so), the markets will stabilize.” Readers would have been better served had the author pointed out that while investment pundits insist that there is no foolproof investment strategy that works for everyone, his compound-yield approach, if executed thoughtfully and prudently, could produce impressive returns with minimal downside risk. A little understated humility has enormous impact.

But, overall, the author offers solid, concrete investing advice that, if followed, can significantly increase investors’ portfolios.

Also available in hardcover and ebook.

Author's Current Residence
Carrollton, Georgia
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