F Wall Street: Joe Ponzio's No-Nonsense Approach to Value Investing For the Rest of Us (Paperback)

~ (Author)

Editorial Reviews

Product Description

“Look at market fluctuations as your friend rather than your enemy; profit from folly rather than participate in it.” —Warren Buffett

Investors shouldn’t hate the market because of its up and downs. They should capitalize on it—and give a middle finger to those brokers wasting their time (and money) buying and selling, viewing investing as just buying stocks and not taking ownership of a company. In this book, Joe Ponzio gives an “f-you” to Wall Street and teaches you how to become a sharp value investor who uses economic downturns to your advantage. By buying into companies you believe in—but that may be selling for less than their intrinsic value, like high-end retailers in a weak market and discount retailers in a strong one—you will profit from their long-term performance. It’s the perfect guide for anyone fed up with Wall Street’s bull.

About the Author

Joe Ponzio has seen the “dark side” of Wall Street. Having worked for two of the largest firms in the industry, he left the Wall Street titans in 2002 to found the Meridian Business Group, a successful portfolio management firm dedicated to performance, safety, and putting his money where his mouth is. Today, Mr. Ponzio manages individual portfolios as well as a private investment fund modeled after the early partnerships of Warren Buffett. His website FWallStreet.com is a popular value investing site and is a permanent link on CNBC.com’s Warren Buffett Watch. He lives and works in Chicago, IL.

Product Details

• Paperback: 288 pages
• Publisher: Adams Media (June 18, 2009)
• Language: English
• ISBN-10: 1605500003
• ISBN-13: 978-1605500003
• Product Dimensions: 8.4 x 5.4 x 0.9 inches
• Shipping Weight: 12 ounces (View shipping rates and policies)
• Average Customer Review: 4.9 out of 5 stars  See all reviews (7 customer reviews)
• Amazon.com Sales Rank: #176,697 in Books (See Bestsellers in Books)

Customer Reviews

Most Helpful Customer Reviews

2 of 2 people found the following review helpful:

4.0 out of 5 stars Value Investing that Emphasizes Cash Flow, June 27, 2009

By	Jeff Partlow (Annandale, VA United States) - See all my reviews (REAL NAME)

I'm certainly glad that the somewhat objectionable title did not dissuade me from reading this book. The title comes from the author's contention that the brokerage and mutual fund industry is driven by their own greed. Thus, their focus is primarily on sales rather than what should be their objective, namely identifying good investment opportunities that will enhance our investment returns. Although I have no disagreement with this viewpoint, I'm pleased to report that a relatively small portion of the book is devoted to this topic. Most of the book is a practical guide to value investing.

The primary thesis can be summarized as follows: "So the key to making long-term gains in the stock market is simple. Figure out which companies will grow and buy them at a cheap price." It is easy to agree with such an objective, but how do we do that? What distinguishes this book from the myriad value-oriented investing books now available is the author's emphasis on the importance of analyzing a company's cash flow characteristics. This is a welcomed viewpoint that transcends the traditional value investor's financial ratios of P/E, P/B, and P/S.

The author describes how Warren Buffett utilized the cash flow concept of owner earnings since the mid-1980s, even years before the cash flow statement became a required corporate quarterly financial reporting document. The author uses Enron to demonstrate the desirability of analyzing cash flows in lieu of reported earnings. The two primary analysis tools espoused by the author are "Cash Yield" and "Buy-and-Hold Valuation". Historical examples using Johnson & Johnson, Coca Cola, and Microsoft are helpful in answering the when to buy? and when to sell? questions. An additional benefit from this book are the interesting, common sensical insights in the areas of portfolio diversification and also "The Psychology That Will Drive Your Investment Success".

The improvements that would take the rating from four stars to five stars would be: (1) Less repetition of a few of the viewpoints provided; (2) Reduce the terminology confusion. For example, "Cash Yield" would be more appropriately termed as "Owner Earnings Yield". The same problem with clarity exists in use of the terms "Buy-and-Hold Valuation" and "Cash Return On Invested Capital"; and (3) Rather than relying solely on historical examples of how to identify buying and selling opportunities, it would also be even more useful to the reader if a specific example of how to use the tools to identify a current worthwhile investment opportunity was provided.

1 of 1 people found the following review helpful:

5.0 out of 5 stars You cannot afford not to know the information in this book, August 14, 2009

By	Mariusz Skonieczny "Author" (ClassicValueInvestors.blogspot.com) - See all my reviews (REAL NAME)

If you still think that your broker or mutual fund has your best interest in mind, this book will be a wake-up call for you. The author states that these companies preach that in order to become wealthy and have a nice retirement, people need to save and invest. While this may be true, merely saving and investing does not get you there, unless your investments actually perform well. The author talks about how Wall Street want you to make just enough so they can keep your account, but they take the rest of the profit for themselves.

This book gives readers advice that Warren Buffett followed for years. Invest in stocks as if you were investing in businesses, not just ticker symbols. Value a business so that you know if you are getting a good deal buying a stock. I highly recommend this book to readers who want to take financial matters into their own hands.

- Mariusz Skonieczny, author of Why Are We So Clueless about the Stock Market? Learn how to invest your money, how to pick stocks, and how to make money in the stock market

1 of 1 people found the following review helpful:

5.0 out of 5 stars A Gem of a Book!, July 8, 2009

By	Jonathan Watson (Los Angeles, CA USA) - See all my reviews (REAL NAME)

I have read many books on investing; my favorites include Graham's Intelligent Investor and Security Analysis as well as Fisher's Common Stocks and Uncommon Profits. This book ranks right there among them. In a clear, concise manner Mr. Ponzio takes the reader through the steps required to understand investing, value businesses, and purchase securities. Appropriate for beginning investors, but with valuable information for even the most seasoned- I highly recommend this book! If you are looking for a place to start learning about investing, purchase this book and Graham's Intelligent Investor. If you have read a ton of books about investing, you still need to read this book!