The Sleuth Investor Book Review

The Sleuth Investor Book Review

The Sleuth Investor by Avner Mandelman is a different kind of investment book than most other financial books which cover more traditional aspects of investing.  This book focuses squarely on what a small investor (or firm) should be doing in order to gain an advantage against the rest of the market.  As the title depicts, the advantage investors with a smaller capital base can gain is by physically “sleuthing” the target investment company.  Because many analysts and larger investment firms do not do much physical investigation, one can theoretically gain an advantage by doing the more difficult work. The author runs an investment firm called Giraffe Capital , and claims to have used the techniques he presents in the book to build great wealth over time.  The Sleuthing technique focuses on three major areas – People, Product and Place/Periphery.  Each area has at least one chapter dedicated to it, and examples that use fictitious names as to not call out any firms.  In essence, people are individuals inside and outside of the company that may be important to talk to or even watch what they do.  The book rides a slippery slope between what is legal and not legal, and…

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The Basics of Understanding Financial Statements Book Review

The Basics of Understanding Financial Statements Book Review

The Basics of Understanding Financial Statements Book Review The Basics of Understanding Financial Statements: Learn How to Read Financial Statements by Understanding the Balance Sheet, the Income Statement, and Cash Flow Statement by Mariusz Skonieczny This is a pretty simple book, and covers the basics of the three financial statements that investors use to determine the quality and value of a business.  The target audience of this book is definitely a novice in understanding financial statements.  Most of the information can be easily found online on various websites, but it is nice to have everything combined into a single book that can be ready quickly. I would only recommend purchasing this book if you have never read or studied accounting or finance, as this book is just a brief introduction covering the three financial statements and explaining each line item. Purchase The Basics of Understanding Financial Statements: Learn How to Read Financial Statements by Understanding the Balance Sheet, the Income Statement… from Amazon.com  

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The Outsiders Book Review

The Outsiders: Eight Unconventional CEOs and Their Radically Rational Blueprint for Success by Will Thorndike I highly recommend reading this book if you have not done so.  A lot of investors have already read this book, so I’m a little late to the game however it’s a very useful look into the details of 8 CEOs whom have  provided exceptional returns over a long period of time for their investors.  Everyone is familiar with Warren Buffet and his amazing record of running Berkshire Hathaway, however, most will not recognize all of names of the CEOs that are covered in the book. General Cinema – Dick Smith Ralston Purina – Bill Stiritz The Washington Post Company – Katherine Graham Berkshire Hathaway – Warren Buffett General Dynamics – Bill Anders Capital Cities Broadcasting – Tom Murphy TCI – John Malone Teledyne – Henry Singleton The common attribute of all of the people included in the book is their outstanding capital allocation skills.  The CEO is responsible for determining the best possible use of cash and investments for the company that they run.  To obtain outstanding returns on investment a CEO must determine how to invest the resources of the firm appropriately and that’s…

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Book Review: Value Investing – From Graham to Buffett and Beyond by Bruce Greenwald

I finished reading Value Investing: From Graham to Buffett and Beyond which is written by Bruce Greenwald, and Judd Kahn.    The book was published in 2001, which is 11 years old now.  The book is broken up into 3 sections: Section 1 is an introduction to Value Investing, Section 2 discusses the three sources of value, and the last section covers profiles of eight value investors. Section 1: Introduction to Value Investing The first section is a pretty basic introduction to value investing, covering definitions, along with some results to provide credibility to value investing.  This section just provides a background to people new with value investing.  It creates a baseline to move into the next section which starts to get into depth of Greenwald’s valuation methodologies. Section 2: Three Sources of Value Section 2 begins to provide value to the reader and covers the three sources of value according to Greenwald.  At a high level, it is a basic philosophy at a valuation framework for companies.  As Greenwald explains each source, the complexity of valuing companies becomes apparent because the math and processes become more involved. The most accurate valuation technique, is to value the assets of a…

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