Margaretta described it well in the introduction when she called it an Executive Summary of Michael Porter's Five Forces Perspective.
It is clear and...moreMargaretta described it well in the introduction when she called it an Executive Summary of Michael Porter's Five Forces Perspective.
It is clear and easy to understand for those of us who are not MBA students but are willing to pay attention. "Not getting you Porter's first hand", as she says is often the problem for true understanding of the concept, is avoided without the need to spend months tackling the academic text written by Porter, himself.
The FAQ interview between Margretta and Porter is a highlight of the book. His reference to his new "Shared Value Perspective" in the FAQ inspired me to get the download of the 17 page article with the same name from Harvard Business Review. The article is also available via audible as an audio download. (less)
It's a pretty good entreprenurial biography. It's more about Bezos than Amazon, which didn't put me off, since the title indicated to me it would be "...moreIt's a pretty good entreprenurial biography. It's more about Bezos than Amazon, which didn't put me off, since the title indicated to me it would be "the story of Amazon as a creation of Jeff Bezos" so I got what I expected as far as the balance of content. I wanted to hear more of the nitty-gritty of aquizitions, mergers and take-overs, like in T.Boone Pickens book 'The First Billion is the Hardest'. Though to be fair, Pickens was autobioraphical, so he could disclose the bare-knuckled, real-life drama from a perspective that Brandt wouldn't have had as a biographer. Did Brandt gloss over the faults of Amazon and Bezos, adressing criticisim yet minimizing culpability? I think so, but this is the only book I've read on Bezos and Amazon. I feel like some relevant and interesting aspects have been left out, but don't know what. (less)
This very clean book on the essential principles of value creation is targeted toward C level decision makers rather than investors. This focus makes...moreThis very clean book on the essential principles of value creation is targeted toward C level decision makers rather than investors. This focus makes it no less valuable to anyone who wants to understand corporate level strategy, the stock market or investing.
The Core of Value: A business's value is driven by its growth and return on capital, and the resulting cash flows. (Chapter 2)
The Conservation of Cash Flow: Value is created when companies generate higher cash flows, not by simply rearranging investors' claims on cash flows. (Chapter 3)
The Expectations Treadmill: Movements in company share price reflect changes in the stock market's expectations, not just underlying performance. (Chapter 4)
The Best Owner Principal: The Value of a business is not absolute, rather, depends on who is managing it and the strategy pursued. (Chapter 5)
Part Two covers The Stock Market
It covers the movements of the Stock Market and their relevance more effectively than I have read anywhere else.
Part Three Covers Managing Value Creation
This section addresses how C level executives should apply the principles of the first two parts to manage value.
I like to listen to audio books every day, but I knew there were many visual elements of the book which add greatly to the overall content. I decided to get the audio download with the accompanying 54 page pdf. All the frequently referenced exhibits are on pages 2 through 51 of the pdf. Appendix A: The Math of Value, pages 52 through 56 breaks down, "the core-of-value cornerstone as a simple formula along with its derivation." The last two pages illustrate evaluation by metrics other than PE ratios.
Some people could find listening to audio of a book that is so saturated with relevant illustrations unproductive, but it works very well for my learning style, especially since I knew in advance I would follow my listening with a quick re-read of the hard-cover version sometime within the next month. I wish more illustration rich books would allow this option. The absorption level really goes up with a second learning method (audio then visual). There is also an accompanying workbook, which I haven't purchased. (less)