F Wall Street by Joe Ponzio – A book review
F Wall Street by Joe Ponzio:
Total score: 9 of 10
Highlights: Discussions on CROIC, Chapter 6 and Chapter 7 are brilliant.
Sour Spots: Well, this is a book for new to intermediate investors. So there are a few chapters that more advanced readers will feel is a bit drab. Also, considering the books target audience is new investors a quick rundown of where to find stocks would be in order.
Review:
Every once in a while an investment book is printed that truly impresses me; this is one of them. Easy to read, a fast read and truly gives new information and new insights to age old value investing. I think for people who really want to get a better idea of how Warren Buffett invests, this is perhaps the closest interpretation of the man himself. I know a lot of people have the misconception that Warren is an all out follower of Benjamin Graham, but I do not agree, and the majority of his investments prove this fact.
F Wall Street by Joe Ponzio really breaks down such hard to describe terms and methods such as how to value a company using Discounted cash flow analysis (DCF) , CROIC (cash return on invested capital), what a moat is (and how to find them ) and a nice discussion regarding owner earnings. (I have tried to discuss these subjects in detail myself to no avail) I find it interesting that Joe really uses Warrens own description of Owner earnings to base his DCF on, this is something I rarely see, and appreciate it being described with such ease.
The book would easily get a perfect 10 from me if it went more in detail on how to find great investments. I think considering the books intention is for new investors a good description on where to find stocks would probably be in order. I have written an article on this myself and you can find it here.
If there is one book I would recommend over all others for new investors, it would be Joe Ponzios F Wall Steet.
In conclusion: If there is one book I would recommend over all others for new investors, it would be Joe Ponzios F Wall Steet. (yes, even over the bible that is Security Analysis by Benjamin Graham) This is a great book and one I find myself coming back to from time to time as a reference.
May 4th, 2010 at 1:32 pm
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