Book-review: The little book of value investing, Brown

A classic value investing book, that would have been a better read for me if I had not read so many good books before…

The book was well written and structured and included largely the same content as many other books on value investing, but I preferred magic formula. It was more fun to read and proved statements with empirical data, which I liked. Below I simply list a few non-compete bullets abiut of the book’s content:

Buy stocks like steaks… On sale summarizes the first chapter perfectly. The super investors of Graham and Doddsville hints to the superiority of ‘value’ investing styles.

What’s it worth? This is the questions to ask as a (value) investor and then buying at a margin of safety.

Low P/E and P/B multiples with high ROCs from an international list.

Ask questions

  • Outlook for pricing? Price increases can have. A big effect on profitability
  • Can the company sell higher volumes?
  • Improving gross margins?
  • Can the company control expenses?

Time in the market! is what really counts for the longterm.

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