Last time, I was asked to describe each investor in one word each . This time, I will describe investment books in one word each.
#1 Security Analysis: Comprehensive This is the first investing book I read. Without any experience, I did not grasp all the ideas. However, I found Ben Graham’s ideas in most books I read later. That’s why I think if one has the chance to read only read, I would suggest Security Analysis .
#2 Common Stock and Uncommon Profits: Perfect I used to focus more on business as Buffett said he want companies that can be run by idiots. I now realize that for a long-term investment, people factors are very important. In my search for perfect investments, I found a great framework in Common Stock and Uncommon Profits . If we analyze a company and all answers to Phil Fisher’s 15 questions are positive, I think it is very likely that we’ve found a perfect investment.
#3 The Intelligent Investor: Defensive I read The Intelligent Investor not long after Security Analysis. I felt that Ben Graham wanted to devise a system for average investor. He spent a big part of the book talking about the approach defensive investor. So, my impression of the book is defensive.
#4 Value Investing: From Graham to Buffett and Beyond: Simplify Geoff has a different view. He thinks Bruce Greenwald makes value investing more complicated in this book. I agree with him in the sense that Bruce Greenwald is an economist and he wants to describe value investing in formula. But I think that formulas help newbies see the approach of value investing more clearly. That can be misleading though.
#5 The Aggressive Conservative Investor: Disagree Martin Whitman said that small investors should buy a stock at the hope of someone buying out later. Therefore, he looks at private owner value. I have a different view. Warren Buffett buys a whole company but never change the management. I see no difference between buying a share of a company and buying the whole company if we trust the management and capital allocation. Therefore, I value a company as something to hold it forever, not as something that other people will buy at a higher price.
#6 You Can Be a Stock Genius: Intelligent I described Joel Greenblatt as “tricky.” Intelligent can be a better word. What’s the better word to describe his tactics to take advantage of special situations?
#7 The Curse of Mogul: Media This is a good book about in the media industry. The book talks about competitive advantage in the whole media value chain. It focuses on the idea that the value of media companies is in their distribution and challenges the conventional belief that “content is king”.
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