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6th out of 13 books
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1 voter
The Little Book That Builds Wealth: The Knockout Formula for Finding Great Investments
by
Pat Dorsey
In "The Little Book That Builds Wealth, " author Pat Dorsey--the Director of Equity Research for leading independent investment research provider Morningstar, Inc.--reveals why competitive advantages, or economic moats, are such strong indicators of great long-term investments and examines four of their most common sources: intangible assets, cost advantages, customer-swit...more
Hardcover, 200 pages
Published
March 1st 2008
by John Wiley & Sons
(first published February 29th 2008)
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A sensible approach to picking stocks
How do you pick stocks? Do you pay attention to earnings? Chart patterns? Growth potential? Your Uncle Morty? Instead of all that, use the same basic system that investment guru Warren Buffett perfected: Look for solid profitable companies that own a piece of the market, buy their stock and hold it a long time. Morningstar, the investment research company, uses the same approach to analyze and rate stock values. Its director of equity research, Pat Dorsey, e...more
How do you pick stocks? Do you pay attention to earnings? Chart patterns? Growth potential? Your Uncle Morty? Instead of all that, use the same basic system that investment guru Warren Buffett perfected: Look for solid profitable companies that own a piece of the market, buy their stock and hold it a long time. Morningstar, the investment research company, uses the same approach to analyze and rate stock values. Its director of equity research, Pat Dorsey, e...more
I'm not generally a fan of the Little Book series, as I think most of them are summarised rip-offs. This one (didn't buy it, got it free) is pretty good though -- there's actually new intellectual content in there that was thought provoking and, I think, practically useful.
Dorsey's contribution comes from his analysis of what truly constitutes economic moats (or sustainable competitive advantage, or whatever else you want to call it), and his distinction between genuine moats and "mistaken" one...more
Dorsey's contribution comes from his analysis of what truly constitutes economic moats (or sustainable competitive advantage, or whatever else you want to call it), and his distinction between genuine moats and "mistaken" one...more
I love how the book focuses on understanding competitive advantages in terms of WB's concept of 'moats'. Talks about customer stickiness, intangible assets, the durability of earnings power and stuff like mistaken moats.
Analysts get caught in clubbing all brands equally, but brands empower a company with pricing power and customer stickiness. Amazing when customers cant really go anywhere else.
The strength of regulatory licenses and the weakness of patents.
The snowball effect of being part of a...more
Analysts get caught in clubbing all brands equally, but brands empower a company with pricing power and customer stickiness. Amazing when customers cant really go anywhere else.
The strength of regulatory licenses and the weakness of patents.
The snowball effect of being part of a...more
[audiobook review]
If you pick stocks by only looking at P/E ratios or watching the trend of the share price over a period of time, then this book will probably help encourage you to spend a lot more time researching and thinking about why you are buying the stocks you are buying. It has straightforward outlines for how to determine companies that have economic "moats" and advantages, presents good examples, and injects quite a few plugs for morningstar.com.
If you pick stocks by only looking at P/E ratios or watching the trend of the share price over a period of time, then this book will probably help encourage you to spend a lot more time researching and thinking about why you are buying the stocks you are buying. It has straightforward outlines for how to determine companies that have economic "moats" and advantages, presents good examples, and injects quite a few plugs for morningstar.com.
I've been recommending this a lot lately to colleagues who are either trying to understand the point behind equity research or conduct competitive analyses.
This is a very well written and easily read book on investing principles practiced by Buffett and Munger. It was a pleasure to read.
Best book ever on "economic moat" framework. Definitely provides enormous foods for thought.
A GREAT beginning book for people interested in learning the basics of company analysis. Not too accounting based (see"The Five Rules for Successful Stock Investing") but solid, nonetheless.
Good book on ID'ing economic moats.
Aug 29, 2012
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Great book by one of the founders of Morningstar. Provide solid advice for spotting businesses with "motes" to entry market. Helps recognize when the right time is for investing in great companies.
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