GOOD READ New books for small investors
By Mark Bautz

(MONEY Magazine) – With the stock and bond markets behaving erratically, now's the time to brush up on investing fundamentals with these three informative new books: -- How to Buy Stocks by Louis Engel and Henry Hecht (Little Brown, $14.95). This revised edition of the classic 1953 guide helps you evaluate stocks by assessing their earnings forecasts, cash flow and other key measures. For example, if you seek a value stock, screen for ones with a price/earnings ratio under 10. -- Winning in Mutual Funds by Jay Schabacker (Amacom, $24.95). Novices will like this comprehensive introductory book covering a range of topics from asset allocation to tax rules for investors. One key tip: Although dividend income from a municipal bond fund is tax-free, capital gains are not. -- Grow Rich With Mutual Funds -- Without a Broker by Stephen Littauer (Dearborn, $19.95). Pick up this book if you're looking for detailed profiles of top no-loads. Former broker Littauer notes that Twentieth Century Ultra's love of high-flying technology stocks has powered the fund up 17.8% annually for the five years that ended Aug. 1.