Other Sellers on Amazon
+ $3.99 shipping
+ $3.99 shipping
The Little Book of Value Investing Hardcover – September 22, 2006
|New from||Used from|
Inspire a love of reading with Amazon Book Box for Kids
Discover delightful children's books with Amazon Book Box, a subscription that delivers new books every 1, 2, or 3 months — new Amazon Book Box Prime customers receive 15% off your first box. Sign up now
Enter your mobile number or email address below and we'll send you a link to download the free Kindle App. Then you can start reading Kindle books on your smartphone, tablet, or computer - no Kindle device required.
To get the free app, enter your mobile phone number.
Frequently bought together
Customers who viewed this item also viewed
From Publishers Weekly
Copyright © Reed Business Information, a division of Reed Elsevier Inc. All rights reserved.
"sharply written...gets you fired up about buying stocks" (USA Today, December 4, 2006)
"If you are a value investor by temperament, you will (or should) find a lot that is persuasive in what Christopher Browne has to say about the craft of value investing in a delightful new book out this autumn...It is nicely written and utterly persuasive if long-term investment success is what you are after and your temperament is equipped to handle the psychological pressures of making non-consensus investments." (The Independent, November 2006)
"elegant new treatise on the art of value investing. . ." (Financial Times (UK), October 30, 2006)
"...easily digestible and shortish treatise for anyone who wants to try out this particular investment strategy". (The Wall Street Journal, October 10, 2006)
"After 37 years of practicing what Graham preached, Browne has distilled the creed into a disarmingly chatty primer. . ." (Bloomberg)
"one of the best guidebooks toward protecting and growing a retirement nest egg. This advice comes from a legend of value investing, and it’s presented with enough clarity that anyone can follow it." (Forbes.com)
- Item Weight : 9.2 ounces
- Hardcover : 208 pages
- ISBN-10 : 0470055898
- ISBN-13 : 978-0470055892
- Dimensions : 5.2 x 1 x 7.1 inches
- Publisher : Wiley; 1st edition (September 22, 2006)
- Language: : English
- Best Sellers Rank: #142,545 in Books (See Top 100 in Books)
- Customer Reviews:
Top reviews from the United States
There was a problem filtering reviews right now. Please try again later.
1. The current ratio - Current assets over Current liabilities - look for a figure greater than 2
2. The quick ratio - same thing minus the inventory
3. Shareholder equity (book value)- Total assets (less intangibles) minus total liabilities
4. Debt to equity ratio - Total debt over Shareholders equity - look for numbers < 1 - the lower the number the better
Chapter 13 is titled "Physical Exam Part II" and examines the income statement.
1. Look for growing revenues ( sales)- top line
2. Gross Profit - Sales minus COGS
3. Gross profit margin - Gross profit over Revenue - look for stability
4. EPS - net profit divided by shares outstanding
5. ROC - Earnings divided by beginning of the year's capital (stockholder's equity plus debt)
6. A low P/E relative to industry and market
Chapter 14 is titled "Send Your Stocks to the Mayo Clinic". Here he gives you 16 additional questions to ask about your company. You have to get the book to see the questions.
This book gave me the idea to create a spread sheet with info that I gathered from the book. The following is the one I did on Intel.
Shares Outstanding 4,980
Price per share 24.26
Market Capitalization $120,815
Earnings per share 2.0
TOTAL ASSETS 83083
NET WORTH ( SHAREHOLDERS EQUITY) 51,194
Total Liabilities 31889
Book Value per Share $7.15
Price to Book value per share ratio Selling for 3 times the amount company can be sold for
Price to Earnings per share ratio Selling for 12.1 times earnings
Current Assets 28677
Total Current Liabilities 11798
Net Current Assets (Graham's number) $16,879
Net Current Assets per share $3.39
Price to net current assets per share ratio Selling for 7.2 times net current assets
Total Assets 83083
Total Debts 31889
Assets to Debt ratio 2.6
Just keep in mind that if you're looking for it to give you ideas on which securities to invest in and actual investment strategies/advice, you're not going to find it here. It's a basic book that explains the idea of Value Investing, and some of the basic methodologies behind it. It explains the history of it, the definition, and how to put it into practice. Any more details would have to require more advanced concepts which will not be covered.
At first I wasn't liking this book and agree with other reviews that it is a mini-version of Graham and Buffett schooling of which there are already plenty of books about their teachings. The first chapters include lots of anecdotes on past great buys by the author including international accounting practices and other nuances not immediately available to the average person. However I found this book valuable and handy for two reasons:
1. Solid introductory advice on the value investing school of thought. Be an investor not a trader. Look at the trend of a data point over TIME, and compare to another RELATIVE FACTOR etc etc.
2. There are 3 middle chapters that breakdown the basics of A) the balance sheet B) an income statement and C) 16 questions the author asks himself after reading A & B
For reason #2 I found this book very helpful and added 2 more stars. This is after reading many other books that I'm sure mentioned that stuff, but for some reason it didn't stick. More sophisticated books assume you already know the income statement so when they say "look at operating margins because of XYZ" I am trying to remember what that is each time I read it. Other books offer pages and pages on each item, which I am too busy for right now.
I then went into Google docs and made myself a little table of the balance sheet and income statement items. Added comments to each cell that defined them mathematically, aliases for the term, and what the metric tells you. Then added rows for the 16 questions. Added a column of personal targets for each item and some conditional formatting. Finally added in the data from my portfolio and also my stock "Fantasy League". Added the kindle reader app too.
Now where ever I go I've got the book's best parts and my breakdown of it in my pocket. So for $10 I'd say got my money's worth and the desire to take time to comment about it. Now I'm reading the Joel Greenblatt Little Book which is pretty good so far too.
Top reviews from other countries
reading this book; you won't become a stock market guru overnight, however you will learn a hell of a lot and may even be swayed by value investing as a methodology going forward.
Would reccomend to anyone and everyone, but you may need a tiny bit of knowedge on financial terms.
What I liked about the book is that everything is explained really clearly and you come away the "I get it feeling" This is useful for the beginner and and a little further reading on the internet and you will be wel on the way.