This is a fantastic book. It won't teach you how to invest, but whatever method you use, it will make you do better at it. It explains the financial part of investing in a very deep way. It covers both intrinsic valuation, i.e. discounted cash flow models (DCF), and relative valuation, which many of you are familiar with. P/B, P/S, P/E, EV/EBITDA, P/CASH FLOW, etc. It also shows how DCF and relative valuation are related. It covers a lot of other material that I have not put in this review.
No book has taught me as much about the financial aspect of investing as this one.
Dr. Damoderan is a very nice man. I have had a few questions over the years, and have emailed him, and he has responded always within 24 hours. (We have never met). This book is not an easy book, so I sent him an email, asking for problems so I could practice what is in the book. He directed me to his web site, where there are numerous problems, with solutions, (all free), and I would practice what I learned there.
Who should not read this book? I do not have a financial back ground, so, I can tell you that if you are looking for a quick easy read, this book is not for you. (unless you have a financial background).
However, for a serious investor, it is very important to understand what is in this book, and should be read.
For a serious investor, I would wholeheartedly recommend this book.