Comments on: Book Reviews of Two Very Different Books http://alephblog.com/2009/12/15/book-reviews-of-two-very-different-books/ Helping Institutions and Ordinary People Invest Better by Focusing on Risk Control Fri, 25 May 2012 21:31:47 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: TDLhttp://alephblog.com/2009/12/15/book-reviews-of-two-very-different-books/comment-page-1/#comment-23870 TDL Tue, 15 Dec 2009 17:39:26 +0000 http://alephblog.com/?p=2209#comment-23870 David, A few years back you mentioned to me in an e-mail that Fabozzi was a good source for understanding bonds (thank you for that advice by the way, he is a very accessible author for what can be very complex material.) In the review of Domash's book you mention that he does not do a good job with financials. I was wondering, is there an author who is as accessible and clear as Fabozzi, when it comes to financials, who you would recommend. Regards, TDL David,
A few years back you mentioned to me in an e-mail that Fabozzi was a good source for understanding bonds (thank you for that advice by the way, he is a very accessible author for what can be very complex material.) In the review of Domash’s book you mention that he does not do a good job with financials. I was wondering, is there an author who is as accessible and clear as Fabozzi, when it comes to financials, who you would recommend.

Regards,
TDL

]]> By: David Merkelhttp://alephblog.com/2009/12/15/book-reviews-of-two-very-different-books/comment-page-1/#comment-23869 David Merkel Tue, 15 Dec 2009 14:54:56 +0000 http://alephblog.com/?p=2209#comment-23869 Fire your Stock Analyst analyst was not DCF -- it was basically two scoring systems, one for growth stocks, and one for value stocks. If a candidate racks up enough points after passing a dozen or so tests, it is a buy. Note: the book does not explicitly give "a" sell discipline. It does talk about reasons to sell, but does not crystallize it. There are also a few things that Domash does not do so well -- on pages 150-152, he only has a tenuous hold on how bond ratings work. The problem for the reader is that when he is done with the book, he will find that it is a lot of work. Maybe that is a good takeaway, though. Good investing is a lot of work. Fire your Stock Analyst analyst was not DCF — it was basically two scoring systems, one for growth stocks, and one for value stocks. If a candidate racks up enough points after passing a dozen or so tests, it is a buy.

Note: the book does not explicitly give “a” sell discipline. It does talk about reasons to sell, but does not crystallize it.

There are also a few things that Domash does not do so well — on pages 150-152, he only has a tenuous hold on how bond ratings work.

The problem for the reader is that when he is done with the book, he will find that it is a lot of work. Maybe that is a good takeaway, though. Good investing is a lot of work.

]]> By: Natehttp://alephblog.com/2009/12/15/book-reviews-of-two-very-different-books/comment-page-1/#comment-23868 Nate Tue, 15 Dec 2009 13:59:26 +0000 http://alephblog.com/?p=2209#comment-23868 Just looking at the table of contents for Fire your Stock Analyst it looks like this book is a more accessible version of the CFA Equity valuation readings. You don't mention it in your review but it seems many books on fundamental investing fall into two camps, DCF models and ratio models. Did Fire your Stock Analyst fall into either camp, or was it more of a fusion of both? Just looking at the table of contents for Fire your Stock Analyst it looks like this book is a more accessible version of the CFA Equity valuation readings.

You don’t mention it in your review but it seems many books on fundamental investing fall into two camps, DCF models and ratio models. Did Fire your Stock Analyst fall into either camp, or was it more of a fusion of both?

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