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| Foreword | |
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| Introduction: Picking Great Stocks Is Tough | |
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| It's the Business that Matters | |
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| The Long-Term Approach | |
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| Having the Courage of Your Convictions | |
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| Let's Get Started | |
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| The Five Rules for Successful Stock Investing | |
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| Do Your Homework | |
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| Find Economic Moats | |
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| Have a Margin of Safety | |
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| Hold for the Long Haul | |
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| Know When to Sell | |
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| Investor's Checklist: The Five Rules for Successful Stock Investing | |
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| Seven Mistakes to Avoid | |
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| Swinging for the Fences | |
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| Believing that It's Different This Time | |
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| Falling in Love with Products | |
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| Panicking When the Market Is Down | |
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| Trying to Time the Market | |
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| Ignoring Valuation | |
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| Relying on Earnings for the Whole Story | |
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| Investor's Checklist: Seven Mistakes to Avoid | |
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| Economic Moats | |
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| Evaluating Profitability | |
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| Building an Economic Moat | |
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| How Long Will It Last? | |
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| Industry Analysis | |
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| Investor's Checklist: Economic Moats | |
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| The Language of Investing | |
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| The Basics | |
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| Where the Money Goes | |
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| Practical Financials--The Statements in Use | |
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| Investor's Checklist: The Language of Investing | |
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| Financial Statements Explained | |
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| The Balance Sheet | |
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| The Income Statement | |
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| The Statement of Cash Flows | |
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| Conclusion | |
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| Investor's Checklist: Financial Statements Explained | |
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| Analyzing a Company--The Basics | |
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| Growth | |
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| Profitability | |
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| Financial Health | |
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| The Bear Case | |
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| Conclusion | |
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| Investor's Checklist: Analyzing a Company--The Basics | |
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| Analyzing a Company--Management | |
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| Compensation | |
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| Character | |
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| Running the Business | |
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| Investor's Checklist: Analyzing a Company--Management | |
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| Avoiding Financial Fakery | |
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| Six Red Flags | |
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| Seven Other Pitfalls to Watch Out For | |
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| Investor's Checklist: Avoiding Financial Fakery | |
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| Valuation--The Basics | |
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| Paying Up Rarely Pays Off | |
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| Using Price Multiples Wisely | |
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| Say Yes to Yield | |
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| Investor's Checklist: Valuation--The Basics | |
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| Valuation--Intrinsic Value | |
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| Cash Flow, Present Value, and Discount Rates | |
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| Calculating Present Value | |
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| Fun With Discount Rates | |
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| Calculating Perpetuity Values | |
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| Margin of Safety | |
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| Conclusion | |
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| Investor's Checklist: Valuation--Intrinsic Value | |
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| Putting It All Together | |
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| Advanced Micro Devices | |
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| Biomet | |
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| Conclusion | |
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| The 10-Minute Test | |
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| Does the Firm Pass a Minimum Quality Hurdle? | |
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| Has the Company Ever Made an Operating Profit? | |
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| Does the Company Generate Consistent Cash Flow from Operations? | |
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| Are Returns on Equity Consistently above 10 Percent, with Reasonable Leverage? | |
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| Is Earnings Growth Consistent or Erratic? | |
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| How Clean Is the Balance Sheet? | |
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| Does the Firm Generate Free Cash Flow? | |
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| How Much "Other" Is There? | |
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| Has the Number of Shares Outstanding Increased Markedly over the Past Several Years? | |
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| Beyond the 10 Minutes | |
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| A Guided Tour of the Market | |
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| Where to Look | |
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| Conclusion | |
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| Health Care | |
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| Economic Moats in Health Care | |
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| Pharmaceuticals | |
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| Generic Drug Companies | |
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| Biotechnology | |
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| Medical Device Companies | |
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| Health Insurance/Managed Care | |
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| Investor's Checklist: Health Care | |
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| Consumer Services | |
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| Companies We See Every Day | |
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| Restaurants | |
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| Retail | |
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| Conclusion | |
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| Investor's Checklist: Consumer Services | |
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| Business Services | |
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| Outsourcing Trend | |
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| Economic Moats in Business Services | |
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| Technology-Based Businesses | |
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| People-Based Businesses | |
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| Hard-Asset-Based Businesses | |
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| Investor's Checklist: Business Services | |
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| Banks | |
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| It's All about Risk | |
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| Managing Credit Risk | |
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| Selling Liquidity | |
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| Managing Interest Rate Risk | |
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| Economic Moats in Banks | |
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| Hallmarks of Success for Banks | |
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| Investor's Checklist: Banks | |
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| Asset Management and Insurance | |
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| Asset Management | |
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| Life Insurance | |
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| Property/Casualty Insurance | |
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| Investor's Checklist: Asset Management and Insurance | |
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| Software | |
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| Segments of the Software Industry | |
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| Economic Moats in the Software Industry | |
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| Software Accounting 101 | |
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| Red Flags | |
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| Hallmarks of Success for Software Companies | |
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| What's Not to Like about Software? | |
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| Conclusion | |
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| Investor's Checklist: Software | |
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| Hardware | |
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| What Drives the Hardware Industry | |
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| Hardware Industry Dynamics | |
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| Economic Moats in Hardware | |
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| Hallmarks of Success for Hardware Companies | |
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| Investor's Checklist: Hardware | |
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| Media | |
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| How Media Companies Make Money | |
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| Economic Moats in Media | |
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| Publishing Profits | |
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| Broadcasting and Cable | |
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| Investing in the Entertainment Industry | |
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| Hallmarks of Success in the Media Sector | |
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| Risks in the Media Sector | |
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| Investor's Checklist: Media | |
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| Telecom | |
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| Telecom Economics | |
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| Economic Moats in Telecom | |
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| Hallmarks of Success in Telecom | |
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| Conclusion | |
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| Investor's Checklist: Telecom | |
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| Consumer Goods | |
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| How Companies Make Money in Consumer Goods | |
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| Key Strategies for Growth | |
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| What's Not to Like in Consumer Products | |
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| Economic Moats in Consumer Goods | |
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| Hallmarks of Success in Consumer Goods | |
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| Conclusion | |
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| Investor's Checklist: Consumer Goods | |
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| Industrial Materials | |
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| The Problem with Cyclicality | |
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| Economic Moats in Basic Materials | |
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| Economic Moats in Industrial Materials | |
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| Hallmarks of Success in Industrial Materials | |
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| Red Flags | |
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| Finding Opportunities in Industrial Materials | |
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| Investor's Checklist: Industrial Materials | |
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| Energy | |
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| From the Ground | |
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| To the Pipelines | |
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| To the Refineries | |
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| To the Consumers | |
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| Providing the Services | |
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| The Impact of Commodity Prices | |
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| Economic Moats in Energy | |
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| Hallmarks of Success for Energy Companies | |
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| Risks in the Energy Sector | |
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| Conclusion | |
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| Investor's Checklist: Energy | |
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| Utilities | |
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| Electricity Primer | |
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| Regulation, Regulation, Regulation | |
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| Financial Characteristics of Utilities | |
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| Hallmarks of Success for Utility Companies | |
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| Risks in the Utilities Sector | |
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| The Big Picture | |
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| Investor's Checklist: Utilities | |
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| Appendix | |
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| Recommended Readings | |
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| Morningstar Resources | |
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| Index | |