Ben Stein's Tips On The Market

"Hello, I'm Ben Stein. My mind is a miraculous instrument ... it contains the information I use to protect my money."

Viewers watched that wacky introduction to Ben Stein's game show - "Win Ben Stein's Money" - for five years. And although the show was pure entertainment, Stein takes money very seriously.

While many continue to associate him with his roles on TV and in the movies, he is an economist at heart.

That's led him to his latest endeavour - a book called, "Yes, You Can Time the Market."

Believe it or not, Stein is a financial guy at heart. Check out this resume:

• Undergrad degree from Columbia with honors in economics
  
• A year with the Dept. of Commerce as an economist
  
• Law school at Yale
  
• Lawyer and teacher at several universities
  
• Speechwriter for Richard Nixon and Gerald Ford
  
• Columnist and reporter for Wall Street Journal, Barron's, New York Times Magazine
  
• Author of 17 books, including other financial books
  
• Screenwriter, TV writer, producer, actor

That's a simple premise, right? In other words, buy low. The part that's a little more complicated is figuring out when stock is cheap, that's what prompted Stein and his partner to write the book in the first place.

Stein said he had always heard the old cliche, "You can't time the market," meaning that it's impossible to tell when it's a good time to invest. Stein refused to believe this. So he looked at a lot of historical data and came up with several signs investors can read that signal if stock is overpriced - a bad time to buy - or under priced - a good time to buy.

Stein feels there is a big need for this kind of advice right now. We all saw an over-valued market crash three years ago. Stein believes tech stocks - the NASDQ - is "heading toward bubble territory again."

He admits that buying low is not always fun. In the short run, this strategy won't always put you on top.

"You cannot go wrong if you play it safe," he said. "You might see your neighbor driving around in a Rolls Royce for a couple of years (like all of those who bought tech stocks in the late '90s), but in the long run, you are going to be set, and he's going to be unhappy."

When he set out to write "Yes, You Can Time the Market," Stein knew he would find that buying low is the way to earn a good investment. In other words, the guy who picks and chooses when to invest his money in the market is going to earn more than the guy who puts in a lump sum every January 1. But he did not expect the difference between these two types of investors to be so big. "It's breathtaking," he said. "You really can earn a lot more money this way."

Stein followed this with a piece of advice that also appears in his book.
"Warren Buffett likes to say that the No. 1 rule of making money is not to lose money and the second rule is to remember the first rule. ... In investing and in handling money generally, the key is not to do anything genuinely brilliant and to avoid doing something really stupid." (pg 8)

You don't have to be an economist to understand these rules: 1) Buy Low and 2) Don't Do Anything Stupid. After pages of detail and analysis, Stein and his partner, Phil DeMuth, wrap up with 27 common sense tips for all investors. These are easy to digest and helpful to anyone learning about the stock market.

Besides being excited about his book, Stein is crazy about "Star Search." Says he, "I Love 'Star Search!' It's the most fun job I've ever had," he said.

He has also been on the road giving speeches - particularly at colleges.

This year, he has written two books and is working on a third that's due out this summer. It's called "How to Ruin Your Love Life" and is filled with all kinds of witty ideas on the subject.

He is also a very active member of the GOP. When he is not working, he spends time at home in Beverly Hills with his wife and young son.

"Win Ben Stein's Money" wrapped up in 2002 - after several years and a few Emmy awards.