Finding the next Starbucks- How to identify and invest in the hot stocks of tomorrow by Michael Moe
With limited number of books available on growth and expectations investing this is a pleasant sight to sore eyes.
First this was a 2006 book, not very old but still 10 years in growth investing can be catchy for individual to individual.
The book is divided into three sections mainly:
A. The catalyst and proven history behind successful growth stories
B. Mike’s formula of identifying tomorrow (mega trend, four P, differentiated valuation)
C. Resources and case studies
What really key take away for me in this book is:
Mega trends: Author has identified multiple new trends emerging and successful both. He has taken the pain to map the industries to the mega trends. Attributes and mega trends relationship are established in a tabular form which is bit easier to practice. Meaning if a mega trend is knowledge economy then Research becomes industry and specialisation of subjects become attributes.
Four P- People, Product, Potential, Predictability against every investment process. Pretty much top down investing approach except examples circles around mega trends which makes it easier to correlating theoretical examples.
It is a refreshed reading more so on growth investing.
Additional reference which may help understanding of this book further:
This has gave me great perspectives on investing. Each letter is piece of wisdom and I am actually re-reading lot of them. After finishing basic books on investing, this is great read to connect most of them effectively.
i just read Dhandha - how gujaratis do business - Its a must read for those that invest in owner operated businesses. Plus it gives you a qualitative feel about how growth really takes place from the gurus of capitalism - the gujrati community. Jaldi vaacho
After seminal book Common stocks and uncommon profits, this book was an attempt by Phil Fisher focusing the changes around environment which may be important for growth investing.
This book includes detailed thesis on:
Inflation
Alert corporate management
Merger
Good for those who wants to have a view of macro environment on top the current investment philosophy.
Can some one educate me on - How do you insert the link to Amazon when you post about a book? I see some people here could insert a picture and link to the book.
Concentrated Investing: Strategies of the World’s Greatest Concentrated Value Investors
Allen C. Benello
You would like this book if you are an investor who loves to buy stocks of handful of high quality but undervalued companies for long term. The book gives profiles of very successful concentrated value investors. Most investors today know about Buffett and Munger as great concentrated value investors and they are profiled in this book but how many know about Lou Simpson, Kristien Siam, Glenn Greenberg or Lord John Maynard Keynes? All these are very fascinating and educational profiles and one can learn a lot from them. All these investors are testament to the fact that the concentrated investing calls for knowing your companies well and investing in only good quality companies in which you have very high conviction. All profiles are good but I think the profiles of Lou Simpson, Keynes and Kelly formula are worth many times you pay for this book. I have no hesitation in recommending this splendid book to long term investors.
His previous two books- Deep Value and Quantitative Value are also equally good. Even if you have read many investing books I am sure you will take away something new if you read these three books. Tobias Carlisle is deep value hedge fund manager based out of US and he brings practitioner’s perspective in all his books. He also refers to and applies learning from many seminal academic research papers that have advanced the field of stock investing.
This book is good and gives you the system of finding deep value stocks using a checklist designed by the authors. The certain checks are really useful. He has given couple of forensic algorithm to check for accounting frauds. Although not full proof for regular investor without much time these algorithms are great boon. Another good algorithm (read as formula although I am using this word) is F-Score. I have been paying attention to this score in Indian situation for last few years and I am believer in this rating to avoid permanent loss of capital. perhaps the most useful measure which will influence your returns disproportionately is valuation metric given based on enterprise value. I invest in value stocks and this is one of my favorite measure for last many years. Another very useful measure is GPA - Gross Profitability per asset found by Novy-Marx in their seminal research paper. Many hedge funds have incorporated this in their system.
Overall good system given in this book. You will learn many new things for sure. And it will deepen and broaden your investing learning and horizon.The only catch is this is not easy for small investors to use in totality. you will need access to data, write programs and run those to find the ideas. The entire system is for Quants actually. But you may want to just pick and chose few implementable methods that you can easily apply in your investing process and you can still get a lot of value out of this book in my opinion. Especially the due diligence methods like pietroski F-score, forensic accounting method etc can be very useful.
One useful idea can be to incorporate some of these algorithms in your excel models if you use any. Even better would be if you incorporate some of these algorithms in Screener.in excel and then upload it back to the site. So next time you download the excel from Screener.in for any stock you will get all this done automatically by excel provided the raw data is available in screener excel.
All you need to ever know about PE ratios in 3 pages courtesy from the Prof ( worth more than all the big fat books you have or will read. Follow these simple maxims and add rationality to your investment picks )
This 79 page pdf is by Aswath Damodaran and clears a lot of misconceptions about value investing. I am 100% sure reading it will give everyone a perspective. Plus he is a great writer and uses words that ordinary people like me can understand!
All the Q & A with Buffet & Munger are listed in following link - http://buffettfaq.com/
This link is an exhaustive collection of Q&A with them over a long period of time & neatly organized.
Sitting in cab going home, open the link, find a topic & read 5-10 questions.
Bored in office, open the link & read a question on topic.
I have learnt a lot from YouTube videos and using YouTube tutorials… best option would be to join part time or weekend MBA classes so you get a formal education in class room Setting. In my opinion distance and online classes are difficult to keep up the attention.
I am from non finance background.I am new to investing. I have read The intelligent Investor, Learn to Earn-Peter Lynch, where are the customers yacht.
Do you recommend both the books or any one of them?
If both books are recommended, then in which order should i read them?
In finance, i read Financial Accounting Management - Ambrish Gupta.
