This little book by Pat Dorsey explains the company’s economic moat as the measure of its ability to withstand competitive threats and tough economic times. It is a quick read and provides detailed analysis about the different types of durable competitive advantages a.k.a. moats, that a company achieves. It teaches the beginner investors how to identify business with wide moat when you see one. Some attributes to identify an economic moat include customer stickiness, intangible assets, the durability of earnings power etc. If investors can identify companies with moats and purchase their shares at reasonable prices, investors will be able to do well in their investments
- Moneyball: The Art of Winning an Unfair Game by Michael Lewis [Easy]
This is one of the best books on value investing. Bruce Greenwald is also a professor at Columbia’s Business School, and director of research at First Eagle Funds. The book is divided into three parts: an overview of what value investing is; an examination of three specific approaches to value investing; and case studies of several well-known value investors and the ways they put the tenets of value investing into practice. It explores the way value investing evolved over the years and how the basic concepts were used and modified by Graham disciples to support the present environment without letting past concepts be forgotten. Though the book provides a deep insight into value investing, it can sometimes be a bit technical and therefore reads like a college text.
This book is highly recommend by Dan Leob, the fund manager of Third Point. This book takes an in-depth look at accounting fraud and how to identify warning signs of a company's impending problems. Obviously this book makes sense for anyone looking at balance sheets, 10-Q's and 10K's on a regular basis. A must-read for people who like detailed analyses of companies and financials
This is a lesser known book among investors but is a great book if you want to deepen your understanding of analyzing companies and valuation. It teaches you how to understand the various financial information companies provide. Readers will learn how to interpret the financial statements from an investor point of view. This book found its place in the top 10 list via a recommended by Bill Ackmann, who is famous for shorting Herballife