Monthly Archives: August 2014

The New Buffettology Book Review

The New Buffettology Book Review

Read this book review of The New Buffettology to see if it’s right for you!

The New Buffettology by Mary Buffett and David Clark shares “The Proven Techniques for Investing Successfully in Changing Markets.”

And I actually picked up this Warren Buffett book after reading another book by the authors, Warren Buffett and the Interpretation of Financial Statements. So was The New Buffettology worth the purchase price?

Well, you’ve certainly come to the right place to find out. In this blog post I’ll review The New Buffettology so that you can get an in-depth look at what this book is all about, and whether or not it’s the right Warren Buffett book for you. So let’s get into it, shall we?

What’s The New Buffettology All About?

The New Buffettology is the third book by Mary Buffett and David Clark. It’s an update to their best-selling Buffettology. So what makes this version new?

The New Buffettology is all about understanding how Warren Buffet makes his investing and capital allocation decisions. And in this regard, this book doesn’t disappoint. It does a good job of walking through the thought process Buffett applies when evaluating potential investing opportunities.

For example…

The New Buffettology explains some of the most important characteristics that a business has to have to be a worthwhile investment to Buffett. From there, it shows some of the key operating highlights and financial items that Buffett pays particular attention to. And not only does the book review these items, it actually explains why they’re important and when there are exceptions. This kind of in-depth examination will be of much value to the up-and-coming value investors who are reading this book review.

From there, The New Buffettology goes on to discuss when and why Warren buys particular stocks. It highlights how he finds buying opportunities amidst stock market panics, corrections and industry recessions. By the time you’re done reading this book, you should have a good idea of how you too can take advantage of stock market opportunities that come around when the bears get control of the tape.

The New Buffettology also then shows a number of case studies. It’s particularly interesting to learn which investments Buffett pursued, and why he made them. The book does a great job digging deep into some of these investments. And while the book contains some of the case studies from the original Buffettology, since it was published many years later it’s neat to see how those original prediction panned out.

But that’s not even the best part of The New Buffettology.

What I Liked Best About The New Buffettology:

One thing The New Buffettology does well is help you learn to apply the lessons of Warren Buffett for yourself. Specifically, the last chapter of this book is basically a worksheet that you can use to help you evaluate your investment ideas. By putting your stock picks and investment ideas through this checklist, you can see for yourself if they are Buffett-worthy investments. Pretty cool, right?

Of course, the worksheet isn’t perfect. And you’ll want to do more due diligence of your own. But if you’re just getting started out with value investing this is a great place to get going. It’s easy to understand and entirely actionable. What’s not to love?

Unfortunately, The New Buffettology isn’t perfect. And before you rush out to buy this book, you may want to

Where The New Buffettology Comes up Short:

The New Buffettology is a great book. And it’s an interesting look at the thought-processes and school of thought that helps guide Warren Buffett in his capital allocation decision-making. But at times, the book is a little bit too vague.

There are some chapters that discuss Buffett’s approach in relatively broad strokes. And while there are pockets of insight and value, you need to read between the lines a little bit to really extract the applicable value-added insights.

On the other hand, Warren Buffett and the Interpretation of Financial Statements (by the same authors) is much more actionable. In contrast, I’m having a little more trouble applying the knowledge from The New Buffettology. But it’s still ripe with learning opportunities, especially if you haven’t read too much about Warren Buffett before.

So where should you go from here?

The New Buffettology – The Final Word:

I really enjoyed reading The New Buffettology. It’s always great to learn investing lessons from the legends. And there’s no better legend than Warren Buffett, right? For that reason, and because of the worksheet in the final chapter, I encourage you to buy The New Buffettology on Amazon so you can soak up this wisdom for yourself.

But if you’re still looking for a little more information, check out the video book review. It’ll give you even more information on The New Buffettology and whether or not it’s the right value investing book for you.

The New Buffettology Book Review:

Warren Buffett and the Interpretation of Financial Statements Book Review

Warren Buffett and the Interpretation of Financial Statements Book Review

Read this book review to learn about this investing book.

Warren Buffett and the Interpretation of Financial Statements, by Mary Buffett and David Clark shows you “The Search for the Company with a Durable Competitive Advantage.”

This book review will walk you through Warren Buffett and the Interpretation of Financial Statements, so you can decide if this is the right financial book for you. And guess what?

In this book review I’ll not only tell you what I liked and disliked about this book.  I’ll also answer the other burning questions you have, like who is Mary Buffett? And does this book accurately represent the Warren Buffett approach to value investing.

Hopefully my perspective will prove helpful for you. I’ve read plenty of Warren Buffett books and have studied Buffett’s investment strategies in-depth. So I feel qualified to give you a clear answer as to whether Warren Buffett and the Interpretation of Financial Statements is the right book for you.

Why I Liked Warren Buffett and the Interpretation of Financial Statements:

Warren Buffett and the Interpretation of Financial Statements was a great book. I was actually surprised how good it was.  I wasn’t even going to buy this book, but I really needed something quick in a pinch. I’m glad I picked it up.

The main reason why I liked Warren Buffett and the Interpretation of Financial Statements so much is because it’s exactly what it sounds like. The book has one or two quick introductory chapters about Warren Buffett and his overall investment approach. And then from there, it just gets down to business.

The book dedicates each chapter to a line on each financial statement. It then methodically goes through the income statements, balance sheet and cash-flow statement. And of course, the chapters don’t just talk about the financial line items. They discuss how Warren Buffett would interpret each particular.

It’s perfect.

I was actually surprised how this book was so focused on the meat and potatoes of the financial statements. It was really quite educational. And even though I’ve read The Intelligent Investor and Security analysis, for some reason this book made it all click. I think the reason is…

Warren Buffett and the Interpretation of Financial Statements is so focused on helping you understand the facts that it lays out an actionable roadmap you can follow to interpret financial statements in a Warren-Buffett-Like manner.

This also makes Warren Buffett and the Interpretation of Financial Statements a great reference book to keep around your office. It’s really handy to

But wait, I know what you’re thinking?

Who are the Authors?

When people write about “what Warren Buffett would do” I’m always skeptical. I mean, why are they writing books if they know how to get so rich, right? But in this case, I was reassured.

Mary Buffett is the former daughter-in-law of Warren Buffett. She was married to his son for 11 years, and presumably has spent some time around the Buffett household.

David Clark, the other author is a practicing “Buffettologist” living in Omaha. He studies Warren Buffett and runs an investment fund. So it seems the authors of this book are more than just passing Warren Buffett fans.

But other than that, there’s one other thing about the book I want to warn you out.

While Warren Buffett and the Interpretation of Financial Statements is a great book to help you improve your value investing, it’s not perfect. The book is only about 170 pages long. And the pages are pretty small. So while the book moves quickly, it’s also necessarily a little simple.

I think I got more out of this book because I’ve read so many other essays, letters and books by and about Warren Buffett.  While you can definitely read this book early in your investment career, I think you’ll get more out of it if you focus on some of the fundamentals first.

Now, let me share the best part with you…

The Best Part of Warren Buffett and the Interpretation of Financial Statements:

Warren Buffett and the Interpretation of Financial Statements is a great book. But my favourite part is they give specific measures and metrics for you to use as a yardstick when evaluating financial statements for yourself.

Whether it’s a balance sheet, cash flow or income statement, this book gives you specific benchmarks to keep in mind when you’re evaluating your own stock ideas. What more could you ask for?

I think the one thing that would make Warren Buffett and the Interpretation of Financial Statements an even better book was if it contained a summary table with all of the stats and figures they mention. I’m seriously contemplating making one.

Now let’s wrap this up…

Warren Buffett and the Interpretation of Financial Statements – The Final Word:

Warren Buffett and the Interpretation of Financial Statements is a great investing book that I recommend to value investors of all shapes and sizes. It’s a good refresher on the fundamental best practices of financial analysis. And it’s really easy to understand. For those reasons alone I recommend you buy Warren Buffett and the Interpretation of Financial Statements on Amazon.

If you’re looking for a little more information, check out the video book review of Warren Buffett and the Interpretation of Financial Statements below.

The Value Investors Book Review

The value Investors book review

Read this book review of The Value Investors by Ronald Chan!

The Value Investors, by Ronald Chan provides “Lessons from the world’s top fund managers.”

So is Value Investors all it’s cracked up to be?

Well, the truth is, I was headed to the beach and needed some light reading. So this compilation of value investors biographies and interviews seemed like it would fit the bill. In this book review you’ll see how this little reading day at the beach turned out.

I’ll tell you what I liked about The Value Investors, as well as where it came up short. That way you can decide if this is the right finance book for you.

Now let’s get into it.

What I Liked About The Value Investors:

The Value Investors is much like Market Wizards, in that it features one prominent investor per chapter. As I was hoping for, this made the book pretty easy to read. If you have to commute to work and need something that doesn’t require concentrated focus for one chapter after another, this book would be great for you.

The Value Investors is easy to read. And some of the individuals that are interviewed and featured in the book are very prominent personalities, within the value investing community. If you’ve read the Appendix in, “The Intelligent Investor” you’ll recognize a lot of these names. It was great to get these perspectives in an easy to digest format.

While there are lots of stock market biographies, this book does a good job gathering up a diverse and global contributor base made of leading value investors. And leaders they are. This book interviews a number of investors who have made double digit returns for decades on end. It’s really quite incredibly.

The Best Parts of The Value Investors Book:

The Value Investors was a fun, educational and easy to read book that was exactly what I was looking for. You don’t want to read a text book like Security Analysis every day, do you? But here are the two best parts of The Value Investors…

(1) First, this book features a great cast of characters. I would have bought it just for the interviews with Walter Schloss and Irving Khan.

(2) Second, this book features a global array of value investors. It does a great job illustrating the different approaches to value investing that exist around the world. It’s insightful to get these perspectives that you otherwise might not have seen.

Where “The Value Investors” Falls Short:

The Value Investors is a great book. And it’s hard for me to point fault. But I always try to find one or two things that critical readers might want to know ahead of time. So to that note, and as I’ve hinted throughout this book review…

The Value Investors is a little bit of a light read. While there are definitely a ton of educational tidbits sprinkled throughout the book, it’s by no means methodical or comprehensive. You won’t learn how to do value investing from this book. It’s great supplemental knowledge. And there are some big hints about how these prolific investors value companies. But I’m not convinced you’ll have a light bulb moment either.

All that said, I really enjoyed reading The Value Investors. And if you’re looking for interesting and insightful biographies of some of history’s time tested value investors, you will too. So let’s wrap this up.

The Value Investors – The Final Word:

The Value Investors is a great book that describes the approaches to life and investing of many of history’s most successful value investors. All of the investors featured in this finance book have decades of experiences outperforming the stock market. It’s for that reason that I recommend you buy The Value Investors on Amazon if you’re curious. They usually have a pretty good discount.

If you’re looking for more information on The Value Investors, I encourage you to check out the video book review below.

The Value Investors Video Book Review

Value Investing by Martin Whitman Book Review

value investing martin whitman book review

Find out why Value Investing by Martin Wthman is a great book.

Value Investing, by Martin Whitman provides a “balanced approach” to investors.

And by the way, even though you may not have heard of Martin Whitman, he’s an incredibly smart value investor, author and thinker. If you’re curious, here’s his recent letter to shareholders, on en Graham and HFT.

So in this book review, we’ll take a close look at Value Investing, to see if Martin Whitman’s approach to markets makes sense. And to decide if this is the right value investing book for you. Now let’s get to it.

Why Value Investing is Worth Reading:

Value Investing was published in 1999, so it’s a relatively contemporary look at value investing (compared to the likes of Security Analysis and The Intelligent Investor). And yet the level of thought is just as good.

Whitman provides a modern look at value investing that’s concise, to the point and bound to improve your investment decision-making process. His discussion is actionable and focused on helping you make smarter decisions in the stock market.

When I first started reading this book, I was expecting just another take on the old Graham and Dodd idea. But Whitman’s value investing book actively compares and contrasts his interpretation of value investing with Graham and Dodd fundamentalism, as well as short term trading and efficient market theorists. This well-rounded approach makes his arguments entirely more convincing. And powerful.

Speaking of, there are a ton of great lessons that Value Investing conveys. Let me show you what I mean…

Best Parts of Value Investing:

Value investing is great book with a ton of valuable insights that are bound to boost your portfolio over the long term. But here are some of my specific favorites…

  • Outside Passive Minority Investors (OPMI) Whitman’s book quickly introduces the term OPMI. And it refers to the average individual investor participating in the stock market. His whole book addresses things in terms of this audience, relative to the way insiders and financial institutions can play the game. It’s illuminating.
  • Markets are Everywhere Whitman makes it clear that value investors don’t just think about the OPMI stock market price (e.g. what you can sell your stock for on an exchange right now). Instead, value investors look for opportunity in M&A markets, LBO markets and going private markets. Think outside the stock exchange.
  • How Other Market Participants Think Along the same lines, Value Investing gives illustrative examples of how other participants, like Wall Street promoters and underwriters, as well as corporate insiders, are working the system. When you can see what you’re up against as an OPMI it help you make better moves and maintain your composure.

And this is just the tip of the iceberg. Value Investing has even more valuable points that you’ll have to read for yourself.

But while I really enjoyed reading Whitman’s Value Investing book, it’s probably not for everyone. Just allow me to explain.

A Word of Warning About Value Investing:

Value Investing is a great book, about just that: Value investing. It’s extremely focused on this topic, so if you’re a day trader or short term technical analyst, I can’t recommend Value Investing for you. Furthermore…

Value investing is also a big of a technical book. It’s not an entirely easy read. And if it was the first book I read on value investing I might have been overwhelmed. For beginners, I think it makes sense to read The Intelligent Investor first.

Because the truth is:

Value Investing is a relatively short book and it cuts to the chase pretty quickly. You might find it a bit overwhelming if you aren’t familiar with basic investing terminology. Make sense?

So let’s wrap this up.

Value Investing – The Final Word:

Value Investing, by Martin Whitman, is a great book for advanced and intermediate value investors. It introduces a number of incredibly important concepts that aren’t touched on anywhere else. For that reason, I recommend you buy Value Investing on Amazon.

If you’re still looking for more information on this value investing book, I encourage you to check out the video book review below.

Value Investing Video Book Review: