THE BUSINESS WEEK BEST-SELLER LIST
IF YOU THINK STOCK-PICKING IS AN ART AND not a science, What Works on Wall Street, No.7 on this month's hardcover best-seller list, may strike you as unaesthetic. But you ought to read it, anyhow. Author and investment consultant James P. O'Shaughnessy has discovered a straightforward way to test the success of an investment strategy--namely, how much money has it made?
O'Shaughnessy has done his homework: He crunched 44 years' worth of numbers from the Standard & Poor's Compustat database, then picked portfolios based on such factors as high yield and low price-earnings ratios. A comparison of his results with what you'd get from a portfolio of large-cap stocks shows which strategies succeed over the decades and which are just flashes in the pan. What Works on Wall Street then demonstrates how combining certain strategies can improve results while reducing risk.
No one investment strategy is a guaranteed winner every year; O'Shaughnessy's numerous charts and tables make that plain. And if you expect the book to explain how to double your money in six months, you'll be disappointed. But O'Shaughnessy shows that if you can consistently make informed yet dispassionate investment decisions based on a strategy, despite a bad year every now and then, you can come out ahead of the market over time. And hey, how many artists can say they've done that?
2 DOGBERT'S TOP SECRET MANAGEMENT HANDBOOK by Scott Adams (HarperBusiness -- $16) Biting observations from a top dog.
3 ONLY THE PARANOID SURVIVE by Andrew S Grove (Currency -- $27.50) Intel's CEO describes how to turn crises into moments of opportunity.
4 AGAINST THE GODS by Peter L Bernstein (Wiley -- $27.95) Risk management in the making of the modern world.
5 WALL STREET MONEY MACHINE by Wade B Cook (Lighthouse Publishing -- $24.95) Formulas to help you strike it rich.
6 LEADING CHANGE by John P Kotter (Harvard Business School -- $24.95) Shaking up the organization, by a Harvard B-school prof.
7 WHAT WORKS ON WALL STREET by James P O'Shaughnessy (McGraw-Hill -- $29.95) A statistical look at how investment strategies stack up.
8 BUILT TO LAST by James C Collins and Jerry I Porras (HarperBusiness -- $25) How 3M, Wal-Mart, Procter & Gamble, and others became standouts.
9 MEAN BUSINESS by Albert J Dunlap with Bob Andelman (Times Business -- $25) A chest-thumping tale from the man they call ''Chainsaw.''
10 THE MOTLEY FOOL INVESTMENT GUIDE by David and Tom Gardner (Simon & Schuster -- $24) An online investment duo puts it on paper.
11 HOW TO SUCCEED IN BUSINESS WITHOUT A PENIS by Karen Salmansohn (Harmony -- $21) Yes, that's really the title.
12 BEYOND REENGINEERING by Michael Hammer (Harper-Business -- $25) In the ''process-centered'' workplace, everyone is a professional.
13 INSIDE THE TORNADO by Geoffrey A Moore (HarperBusiness -- $25) Lore on marketing mined from Silicon Valley.
14 CLICKING by Faith Popcorn and Lys Marigold (HarperCollins -- $26) Spotting trends in order to achieve success and personal fulfillment.
15 EMPIRE OF FREEDOM by James W Robinson (Prima -- $20) The story of Amway and its distributors.
2 THE WAVE 3 WAY TO BUILDING YOUR DOWNLINE by Richard Poe (Prima -- $14.95) Further tips on network marketing.
3 1001 WAYS TO REWARD EMPLOYEES by Bob Nelson (Workman -- $8.95) Give them a champagne brunch, a casual-dress day--or plain old cash.
4 FIRST THINGS FIRST by Stephen R Covey, A Roger Merrill, and Rebecca R Merrill (Fireside -- $14) Managing your time by balancing your life.
5 GET A FINANCIAL LIFE by Beth Kobliner (Fireside -- $11) Hey, Gen X'ers--mutual funds and mortgages can be fun!
6 GETTING TO YES by Roger Fisher, William Ury, and Bruce Patton (Penguin -- $11.95) A Harvard team's step-by-step guide to conflict resolution.
7 THE ONE MINUTE MANAGER by Kenneth Blanchard PhD and Spencer Johnson M.D (Berkley -- $9.95) Three management techniques, conveyed in brief story form.
8 THE BEARDSTOWN LADIES' COMMON-SENSE INVESTMENT GUIDE by the Beardstown Ladies Investment Club with Leslie Whitaker (Hyperion -- $10.95) Recipes for Four-Bean Salad, Five-Hour Stew--and 23% returns.
9 WAVE 3 by Richard Poe (Prima -- $14.95) Quit your job and become a sales entrepreneur through ''multi-level marketing.''
10 J.K LASSER'S YOUR INCOME TAX 1997 by the J.K Lasser Institute (Macmillan -- $14.95) What, already?
11 THE 1997 WHAT COLOR IS YOUR PARACHUTE? by Richard Nelson Bolles (Ten Speed Press -- $16.95) The enduring job-search bible--with a new resource guide.
12 THE WALL STREET JOURNAL GUIDE TO UNDERSTANDING MONEY AND INVESTING by Kenneth M Morris and Alan M Siegel (Fireside -- $13.95) Concise explanations enriched with graphics.
13 BARRON'S DICTIONARY OF FINANCE AND INVESTMENT TERMS by John Downes and Jordan Elliot Goodman (Barron's -- $11.95) What is an oligopsony anyway?
14 BUFFETT by Roger Lowenstein (Main Street -- $14.95) The life and wisdom of the Oracle from Omaha.
15 INVESTING FOR DUMMIES by Eric Tyson, MBA (IDG Books -- $19.95) From stocks to small business--with cartoons, to boot.
By Frederick F. Jespersen
Updated June 14, 1997 by bwwebmaster
Copyright 1996, Bloomberg L.P.