I have read the basic books on FSA and accounting. Any particular order of reading these books you have mentioned.
Why sticks go up and down by pike, inspite of the title is a book on financials
It was also recommended on forums by the person in the picture âbig shortâ is based on, I think his name was Micheal something
I come from finance background and bought it for my partner.
Very plain language
Indian rules and converging with ifrs so use an easy book, jurisdiction does not really matter unless you want to understand tax laws but then it wonât be a simple book anymore
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That is a good book for beginners and very underrated one also.
Five rules of successful investing by Pat Dorsey
For beginner Level Accounting and Financial Statement Analysis I recommend the following two books:
These would give you solid foundation.
The Accounting Game: Basic Accounting Fresh from the Lemonade Stand
Accounts Demystified: The Astonishingly Simple Guide To Accounting
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5 rules for successful investing - Pat Dorsey
Poor Charlieâs almanac
One up on wall street
Financials Shenanigans
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Many thanks for this list. Have the 2nd and 3rd book of this recommendation. Acquired it long back. But yet to read them fully. But have read many other books, which I felt were easier to read. Had read one quote in one of books I have read
and had made a poster on 18.11.2018, which seems to be so justificably applicable to this market fall. Sharing with you all.
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âF Wall Street: Joe Ponzioâs No- Nonsense Approach to Value Investing for the Rest of Usâ
This book was suggested by Professor Bakshi in one of his interviews. This book helps you to understand the importance of cashflow. It has a lot of examples written about cashflow in a detailed manner.
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As behavior and emotional aspect is also as important than knowledge in Stock Market I recommend
Thinking Fast and Slow by Daniel Kehnmen
It talk about human nature and how we make decisions.
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On reading Donaldâs recommendation I bought Five rules of stock investing by Pat Dorsey. now i am more than half way through. it is a eye opener on how to have a structured analysis. on completing reading i wish to choose atleast two companies (like in the book) and exactly follow his step by step process and see how it takes me. will come back to you clarify my doubts in the process. Thank you all.
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To make that job easier of translating PAT Dorseyâs step-by-step do-it-analyst process hereâs what I had done in 2008 and captured back in VP in 2010. This still forms the bedrock (70-80%) of what I do when looking at a business even today - made for a solid foundation. Probably might have added 20-30% refinements over last 10 years of active investing experience.
Just to drive home - how powerful the framework can be - inserting some examples for newbies and learners - so you can also be as excited as rajaguru seems to be. This book is probably THE most under-rated book among investing MUST READS.
Stock Analysis Framework
Early examples of Stock Analysis done using this framework
Stock Valuation Framework
Early examples of stock valuation using this framework
(Edit: couldnât readily find it among archives - @pratyushmittal an we check from old site)
Edit: Surprisingly one thing missing in the comprehensive framework was Competition/Peer Comparison. That was an invaluable tip received by me from Bill Rempel when I had forwarded him my early work. And yes without peer comparisons - you cant place a business performance in perspective!! Thatâs a must again to include in all analysis that you come uyp with for your favourite business
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on Similar lines is the book âyour money and your brainâ by Jason Zweig
and âlittle book of behavioral investingâ by James Montier
i found both of these books easy to read and understand, compared to âThinking fast and slowâ
One of the way i have incorporated the lesrnings from this book, is to make a list of the biases and then ask myself each time i make a investment decision - do i suffer from so and so bias ? and try to reflect honestly.
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I would add to this list capital returns by edward chancellor, extremely well thought out and takes you through identifying early signs of bull and bear cycles.
You can arrive at the bus stop 30mins or 1min before the bus arrives but there is no way to find out how early you are. (On timing of market crash which are impossible to predict)
https://www.amazon.com/Capital-Returns-Investing-Through-Managers/dp/1137571640
Hi Donald, I have worked on one company using five rules and your examples. it has helped understand the company better. I will do a couple more so that I improvise this. I have attached here if you get time please review and provide some suggestions to improve on thanks and regards Rajaguru
Jenburkt Pat Dorsey.docx (90.1 KB)
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This is my first post , well i tried to read the intelligent investor and poor charlieâs almanac but found them really hard to understand and internalize . So i do recommend
Phil Townâs Rule # 1
since i gives a practical framework for investing and avoiding mistakes . I like it because itâs really beginner friendly and the ideaâs are further explained in his weekly podcast even though the content is repetitive.
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Agree. Just started reading Rule#1 book. So far , its a good read.
I have read many books on investment and of firm opinion that Intelligent Investor is one of the most over rated books in this field. Books by Pat Dorsey are class apart.
As on date I would recommend The Psychology of Money by Morgen Housel as it deals with emotional aspect of investment.
A
Though not directly related to investing, I have found reading about sales and marketing helps me understand consumer companies better. Here is one book which I found very interesting, to understand consumer brands.
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Understandably, Pat Dorseyâs and Morgel Houselâs books are relatively simpler but we must acknowledge that they have been derived out of intelligent investor to some extent. If one goes deep into the content, he could see some analogies which are an extension of the investment principals discussed widely in intelligent investor.
Intelligent investor entails learnings on multi-investment styles as a result might become difficult for one to relate or internalize immediately. Moreover in todayâs fast pace, momentary and instant gratification world that book might appear little boring or out-of-context, however we cannot move away from the fact that the book was written by someone who lived the most dreadful crash of all times, lasting more than 3-years (1929-1932). That is probably the only book that can help you navigate through tough times of such magnitude and duration, if occurs again. Moreover the book pays heavy emphasis on psychology - attitude and behavior - rather than investment concepts, which is more important to practice in todayâs information age.
Therefore, clearly, intelligent investor is and will remain the key raw material for current and upcoming investment factories forever.
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