5 comments about The Theory of Investment Value (Fraser Publishing Library) (Contrary Opinion Library).

1. Helpful book for a Fundamental Value Investor since it layed the groundwork on DCF methodology (1934). Helped me to understand how the DCF or Dividend Discount Model was derived but a good undderstanding of economics is required to follow the author's concept. The two case studies are a bit dry but very interesting both from a historic and Value Investing perspective.



2. The Theory of Investment Value is clearly an important work, as reflected in Benjamin Graham's citations to it and the prevalence of the dividend discount model in valuing stocks. The theories expounded in this book are of particular import to those to seek to by stock at a value less than the intrinsic value of a company as they determine it to be.
   
   The book itself initially appears intimidating, as there are a lot of mathematical equations, but in reality, the math is nothing more than simple algebra, mostly different models related to computing dividend values going forward.
   
   I found the book to be an interesting read, but it is highly theoretical in nature. The central theme of the book is that stocks are worth the present value of their dividends, paid in perpetuity. It does not discuss earnings manipulation, effect of dilution, securities with superior or inferior claim to payment, etc. Moreover, as Graham points out in Security Analysis, companies that have a high return on invested capital would be well advised to reinvest their profits, while less successful companies would be better off paying higher dividends (relative to book value). This would, of course, tend to make the practical application Williams' theory somewhat complicated, insofar as it makes computing future dividends more difficult.
   
   Readers looking for a more practical guide to valuing stocks might be better served reading Securities Analysis by Benjamin Graham, or any number of more "practical" books related to stock market analysis, particularly as those analyzing financial statements to determine the intrinsic value of a company. Some readers might also find "The Aggressive Conservative Investor" by Marty Whitman and Martin Shubik to be a good read for a competing view, since the authors of that book take the position that, with respect to non-controlling shareholders, a company's stock is worth the net after-tax cash that they expect to realize in the future, whether from dividends, liquidating events, etc. However, if a reader is truly interested in obtaining an understand of how dividends affect stock prices, the book is a worthy read.



3. This is probably one of the oldest, if not the first, serious academic works on valuation. The coverage is highly theoretical compared to the more practical valuation books of today (dividends are used instead of free cash flow, continuous time is used instead of discrete time, and "cookie cutter" product cycle scenarios are presented instead of more complex business forecasting).
   
   The real value of this dissertation-turned-book though is its general insights. Although Warren Buffett doesn't tout this book as often as Graham's "Intelligent Investor", you will find that he utilizes the insights from this book almost as frequently.
   
   Robert Stephenson-Padron
   MSc student (economics & finance)
   University of Navarra, Spain



4. This is an excellent copy of an investment classic. VERY happy with the seller, the shipping and packaging were superb. Thanks again!



5. A fantastic accomplishment. All investors should study this book to learn the real value of a stock.

1 comments about How Did You Do It, Truett?.

1. Wonderful book about a wonderful man and company! Very practical and understanding, anyone in business would do well to read this book!

1 comments about Guide to Hedge Funds: What They Are, What They Do, Their Risks, Their Advantages (Economist (Hardcover)) (Economist (Hardcover)).

1. A good description of what hedge funds are, what they do, how they make money, how they affect out economy and who runs them.

5 comments about Modern Portfolio Theory and Investment Analysis.

1. For a textbook, this is written in a reader-friendly style. You can almost see the author at the blackboard explaining the concepts AND math in plain English. And yet, very little handwaving at all. On the other hand, this may also present special readability challenges: you may find yourself constantly flipping between text and tables to follow the discussion.

   From a pedagogical point-of-view, some of the developments might have been more intuitively presented. For example, the chapter on option-pricing theory should mention the expected-value interpretation. Over all, however, this text does very well on this score.

   I particularly liked the survey of empirical studies at the end of each major concept, that discusses the imperfections that other researchers have looked into, and their findings.

   This is one of the core reference texts I keep on my desk.




2. This was one of the texts I had to read for one of my MBA classes. It provides an excellent theoretical background in finance and the theories that link finance to macro and micro economics. It is not very practical however. Not much in the book can be applied. It is a must, however, for any serious student of finance. The coverage of option models is a little light, however. I highly recommend that people have a background in calculus, differential equations, probability theory, and linear algebra before reading this book.



3. I got what I expected at the time I was supposed to get it.



4. If you are looking for one textbook on financial investment, this book should be on the top of your list. It has very solid and comprehensive coverage of all the major topics in financial investment, from portfolio construction to CAPM to options to global investing. What I like the most is the detailed discussions on the various pros and cons of each model or technique people use in the real world. This book is a little light on math, but there's enough to satisfy casual readers who want some math but don't want to deal with things like linear algebra or stochastic processes. Another excellent feature is the large number of references the authors provide.
   
   I cannot give this book 5 stars because, due to the multi-coauthorship, the chapters can be a little uneven in both readability and level of treatment. One chapter will give you two pages of algebra from the first grade, and the next chapter is packed with discussions that require a deep understanding of economic theory. The audience of this book is a college senior or a first-year master's or Ph.D. student, which may explain some of this unevenness. The book also tends to be wordy at times.
   
   But overall, this is a good textbook that you can learn from as well as reference in the future.



5. I was looking for a hands on book. It is a pity I had to buy also the software "The Investment Portfolio" which should be included, and also I missed the answers to chapter problems. After a couple of weeks I feel I could advise in making and managing a portfolio.

No comments about Investing in People: Financial Impact of Human Resource Initiatives.

No comments about The Either/Or Investor: How to Succeed in Global Investing, One Decision at a Time.

4 comments about The Intelligent Investor CD: The Classic Text on Value Investing.

1. Have the book and the CD. They work well together. The CD is great just after reading the book to hammer some of the big picture concepts. The CD is wonderful rush hour material to get you out of that rush hour driving sooner! It is worth the $$ to have both.



2. This book is specifically for invertors not speculators. Haveing this on CD and a book format, its easier to grab the ideas that were written couple of decades and still its worth.



3. I am an eager reader of books on Warren Buffett's investing methods. I really want to like "The Intelligent Investor", but I don't. Unfortunately, Benjamin Graham did not write his books to be timeless. Instead, he wrote them specifically for the investing environments as they existed at the times of publication. This audiobook is of the 1972 edition of "The Intelligent Investor", and it reflects the investing environment of the early 1970's.
   
   The story of Mr. Market and the principle of "a margin of safety" are important concepts contained in this book, but they can be found in other writings by and about Warren Buffett.
   
   There is an updated edition of "The Intelligent Investor" by Jason Zweig. It was published in 2003. Hopefully that is better than the older, outdated editions. It is not (yet) available in audio format.
   
   If you are looking for a good audiobook on Warren Buffett's investing methods, I highly recommend "How to Pick Stocks Like Warren Buffett" by Timothy Vick. The best book on Buffett's investing methods that I have read is "The New Buffettology" by Mary Buffett, but it is not available as an audiobook.



4. Great historical review, a good staple for any investor that is already in the game and understands the basics.

5 comments about Trump Strategies for Real Estate: Billionaire Lessons for the Small Investor.

1. This book is great for somebody looking to find the 'big picture' in real estate, with some very helpful thoughts to guide decisions. Working in real estate, I have already used much of the advice in this book with my real estate clients with great success. Though not all thoughts apply to my area, the book as a whole was a great read.



2. This book is very informative about how to change your thinking as well as your practices when it comes to real estate. Very great book for a begginner investor.



3. its a good book for anyone to read and its been a big help to me.
   i suggest you read it if you intrested in investment.



4. This is one of those books that actually accomplishes what it sets out to do. For anyone who has ever watched Trump's show, you know Mr. Ross as the quiet man who gives spot-on advice (which Trump doesn't always heed--too bad!). Mr. Ross is great not only at story-telling but also at gleaning lessons (life lessons) from his and others' experiences. He shares those in this book without being too preachy. While it's quite clear his background is solidly in NYC, he does a good job in expanding his lessons to other parts of the country. This book is a very good read!



5. 2 July 2008 - This is on par with Rich Dad and the best book I have read about Real Estate. He had practical advise that while not easy to do it was easy to understand. Like Ross says if it is easy to do then there are not a lot of profits in it.

5 comments about The Motley Fool Personal Finance Workbook : A Foolproof Guide to Organizing Your Cash and Building Wealth.

1. I bought this book about a year after college, when I wanted to come up with a plan to get rid of some credit card debt and begin saving money. This guide is fun and interesting, yet informative. It guides you step-by-step through good personal finance habits, and allows you to prioritize what goals you have for the future. The most insightful to me was when it asks you to name the things you spend that LEAST contribute to your happiness and MOST contribute to your happiness. I.E. - it's not wasteful if the spending improves your quality of life - versus you're just spending to spend! The workbook section asks you to guess how much you spend on things each month and then actually track your spending for 6 months to help you develop a realistic budget & see how you did. It's definitely a wake-up call to people like me, who seemed to piddle their money away without realizing exactly where it's going. This exercise helps you find the answer to that question!



2. David and Tom Gardner have once again succeeded at making something difficult seem easy. As an estate planner, I know that many people avoid financial matters out of fear . . . fear that they're not smart enough to understand them. The Personal Finance Workbook puts valuable financial planning information at your fingertips and the forms to keep track of your finances are right in the book. If you are just starting out after college, or a Baby Boomer beginning to think about retirement, or someone retired, this workbook will be immediately useful. On a more personal level, as a dad, I am glad that a personal finance book like The Workbook exists. Young people who take early action on managing their finances and developing good savings habits will be infinitely better off in the long run.
   
   James Lange, CPA/Attorney and author of Retire Secure! Pay Taxes Later: The Key to Making Your Money Last as Long as You Do



3. I got this book a few weeks ago to get a feel for personal finance (I just turned 23 and i figured it was time) and it was oen of the best book purchases I ever made! It was laid out very simply with helpful charts and graphs so the math doesn't seem so abstract. Highly recommended!



4. I bought 3 copies of this workbook - one for each of my kids. I love that it provides the basics for them to learn budgeting, etc. and how to support themselves!



5. Terrific workbook...great to buy along with their other book, "You Have More Money Than You Think". Can't go wrong with these guys.

2 comments about The Master Key System PDF Version.

1. This is an insightful book with an easy to understand format and a practical approach. a great choice



2. I bought this book about a year ago, and have read and re-read it almost daily(and I'm still not done with it). My life has changed so much because of it. It's a book that's made to be read slow and contemplated. You set your own goals and desires and Charles Haanel guides you as to how to reach them.