The Little Book of Valuation by Aswath Damodaran gives comprehensive overview of factors that needs to be taken into account for valuation of a company while investing. The book gives immense value in terms of understanding valuation of a company.Value investing is the discipline of buying securities at significant discount from their current values and holding them until more of their values is realized. Valuing a company/business is the most important aspect of investing. It’s a daunting task. The complexities/variables involved in business are enormous. While precision is a good measure of process in mathematics or physics, it is poor measure of quality in valuation. It's better to be vaguely right then precisely wrong while valuing a company.There are far many uncertainties involved in valuation. Macroeconomic factors, regulations, interest rate, competition, innovation these things cannot be predicted with accuracy. Even if one can accurately predict macroeconomic factors, there are far too many other factors/variables involved. Therefore, its aptly said that success in investing comes not from being right but from being wrong less often than everyone else. Understanding valuation is critical to be an informed and successful investor instead of being a speculator focusing merely on price fluctuations. Basically there are two approaches for valuation i.e. Intrinsic and relative. In intrinsic valuation, the value of an asset is determined by the cash flows that one expects to generate over its life and how uncertain one feel about the cash flows. Assets with high and stable cash flows should be more valuable than assets with low and volatile cash flows. In relative valuation assets are valued by looking at how the market prices similar assets. It’s like while determining what to pay for a house, one looks at what similar houses in the neighborhood sold for. With a stock it means comparing its prices to similar stocks in its peer group. Both the approaches i.e. intrinsic as well as relative valuation plays a critical role in picking a sound stocks.Valuing growth companies requires a different approach as compared to valuing a mature company with substantial market size. Both scale and competition conspires to lower growth rates quickly at even the most promising growth companies. Various valuation matrices can be used i.e. Book value, Earnings Price Ratio, Price to Book Value, Price Earnings Growth ratio, Return on Invested Capital to understand valuation of a company. These figures give sense about the quantitative aspect of valuing a business, whereas qualitative aspects of valuing a business i.e. quality of the management are much difficult to assess. The quality of the management is also critical as the management directly controls the company not the shareholders.Also one needs to be aware of cognitive biases in the market. With professional analysts, there are institutional factors that add to substantial bias. Equity research analyst issue more buy than sell recommendations. It’s important to do background research on the company to information sources rather than opinion sources. One should spend more time looking at a company’s financial statements than reading equity research reports about the company. Psychological studies have shown that a loss hurts twice as much as a gain of the same amount makes us happy as people gets hurt losing money much more than they enjoy making money. It leads to panic sales of selling low because investors sell in fear that the stock market will fall more. But for a value investor who is aware of such psychological factors will use it to buy value stocks at bargain price/ extremely cheap price. Therefore, it's important to understand this loss aversion theory as well as the prospect theory.It is also important to understand the difference between volatility and risk. Volatility is price fluctuations whereas risk is business fluctuations. By focusing on keeping the risk minimal, one can find investment that have low or even no risk and offer extremely positive returns. Volatility is a friend of the value investors, understanding of risk and volatility will lead to better investing decision.It's important to understand the book value, liquidation value, intrinsic value etc. Intrinsic value is different from book value. The change in the book value in one year or over a period of time tells how much the intrinsic value of the business has changed. Return on investment capital is also extremely important to factor in a business that manages to compound its capital at a high return will definitely do well over a long period of time. The margin of safety in terms of both price as well as business is also extremely important.The Little Book of Valuation by Aswath Damodaran is an insightful book, very much recommended for anyone learning investing.

Two years in MBA school won't teach you how to double the market's return. Two hours with The Little Book That Beats the Market will. In The Little Book, Joel Greenblatt, Founder and Managing Partner at Gotham Capital (with average annualized returns of 40% for over 20 years), does more than simply set out the basic principles for successful stock market investing. He provides a "magic formula" that is easy to use and makes buying good companies at bargain prices automatic. Though the formula has been extensively tested and is a breakthrough in the academic and professional world, Greenblatt explains it using 6th grade math, plain language and humor. You'll learn how to use this low risk method to beat the market and professional managers by a wide margin. You'll also learn how to view the stock market, why success eludes almost all individual and professional investors, and why the formula will continue to work even after everyone "knows" it.

"A fascinating new perspective on modern finance," --Oliver Hart, 2016 Nobel Laureate in Economics"Lucid, witty and delightfully erudite...From the French revolution to film noir, from the history of probability to Jane Austen and The Simpsons, this is an astonishing intellectual feast." --Sebastian Mallaby, author of The Man Who Knew: The Life and Times of Alan Greenspan In 1688, essayist Josef de la Vega described finance as both “the fairest and most deceitful business . . . the noblest and the most infamous in the world, the finest and most vulgar on earth.” The characterization of finance as deceitful, infamous, and vulgar still rings true today – particularly in the wake of the 2008 financial crisis. But, what happened to the fairest, noblest, and finest profession that de la Vega saw?  De la Vega hit on an essential truth that has been forgotten: finance can be just as principled, life-affirming, and worthy as it can be fraught with questionable practices.  Today, finance is shrouded in mystery for outsiders, while many insiders are uneasy with the disrepute of their profession.  How can finance become more accessible and also recover its nobility? Harvard Business School professor Mihir Desai, in his “last lecture” to the graduating Harvard MBA class of 2015, took up the cause of restoring humanity to finance. With incisive wit and irony, his lecture drew upon a rich knowledge of literature, film, history, and philosophy to explain the inner workings of finance in a manner that has never been seen before. This book captures Desai’s lucid exploration of the ideas of finance as seen through the unusual prism of the humanities. Through this novel, creative approach, Desai shows that outsiders can access the underlying ideas easily and insiders can reacquaint themselves with the core humanity of their profession. The mix of finance and the humanities creates unusual pairings: Jane Austen and Anthony Trollope are guides to risk management; Jeff Koons becomes an advocate of leverage; and Mel Brooks’s The Producers teaches us about fiduciary responsibility. In Desai’s vision, the principles of finance also provide answers to critical questions in our lives. Among many surprising parallels, bankruptcy teaches us how to react to failure, the lessons of mergers apply to marriages, and the Capital Asset Pricing Model demonstrates the true value of relationships. THE WISDOM OF FINANCE is a wholly unique book, offering a refreshing new perspective on one of the world’s most complex and misunderstood professions.    

The Warren Buffett Way provided the first look into the strategies that the master uses to pick stocks. A New York Times bestseller, it is a valuable and practical primer on the principles behind the remarkable investment run of the famed oracle of Omaha. In this much-awaited companion to that book, author Robert Hagstrom takes the next logical step, revealing how to profitably manage stocks once you select them. THE WARREN BUFFETT PORTFOLIO will help you through the process of building a superior portfolio and managing the stocks going forward. Building a concentrated portfolio is critical for investment success. THE WARREN BUFFETT PORTFOLIO introduces the next wave of investment strategy, called focus investing. A comprehensive investment strategy used with spectacular results by Buffett, focus investing directs investors to select a concentrated group of businesses by examining their management and financial positions as compared to their stock prices. A strategy that has historically outperformed the market, focus investing is based on the principle that a shareholder's return from owning a stock is ultimately determined by the economics of the underlying business. Hagstrom explains in easy-to-understand terms exactly what focus investing is, how it works, and how it can be applied by any investor at any level of experience. He demonstrates how Buffett arranges his stocks in a focus portfolio and reveals why this is as responsible for his incredible returns as the individual stocks he picks. Ultimately, Hagstrom shows how to use this technique to build and manage a portfolio to achieve the best possible results.

With an insider's view of the mind of the master, Mary Buffett and David Clark have written a simple guide for reading financial statements from Warren Buffett's succccessful perspective.Buffett and Clark clearly outline Warren Buffett's strategies in a way that will appeal to newcomers and seasoned Buffettologists alike. Inspired by the seminal work of Buffett's mentor, Benjamin Graham (The Interpretation of Financial Statements, 1937), this book presents Buffett's interpretation of financial statements with anecdotes and quotes from the master investor himself.  Potential investors will discover:  • Buffett's time-tested dos and don'ts for interpreting an income statement and balance sheet • Why high research and development costs can kill a great business • How much debt Buffett thinks a company can carry before it becomes too dangerous to touch • The financial ratios and calculations that Buffett uses to identify the company with a durable competitive advantage -- which he believes makes for the winning long-term investment • How Buffett uses financial statements to value a company • What kinds of companies Warren stays away from no matter how cheap their selling price  Once readers complete and master Buffett's simple financial calculations and methods for interpreting a company's financial statement, they'll be well on their way to identifying which companies are going to be tomorrow's winners -- and which will be the losers they should avoid at all costs.  Destined to become a classic in the world of investment books, Warren Buffett and the Interpretation of Financial Statements is the perfect companion volume to The New Buffettology and The Tao of Warren Buffett.

Charlie Munger, Berkshire Hathaway's visionary vice chairman and Warren Buffett's indispensable financial partner, has outperformed market indexes again and again, and he believes any investor can do the same. His notion of "elementary, worldly wisdom"--a set of interdisciplinary mental models involving economics, business, psychology, ethics, and management--allows him to keep his emotions out of his investments and avoid the common pitfalls of bad judgment.Munger's system has steered his investments for forty years and has guided generations of successful investors. This book presents the essential steps of Munger's investing strategy, condensed here for the first time from interviews, speeches, writings, and shareholder letters, and paired with commentary from fund managers, value investors, and business-case historians. Derived from Ben Graham's value-investing system, Munger's approach is straightforward enough that ordinary investors can apply it to their portfolios. This book is not simply about investing. It is about cultivating mental models for your whole life, but especially for your investments.

Most people are stuck. Every day we seem to just go through the motions, following our usual routine without ever stopping and thinking why we do what we do, or what we'd rather be doing instead. But sometimes we have that one day - that Perfect Day - where everything just clicks. We feel great. We are unstoppable. And at the end of it we think, "Why can't every day be like this?"

"Less is more"—or, more specifically, the less you have to do, the more life you have to live. Efficiency expert Ari Meisel details his "Less Doing" philosophy, which will streamline your life, and make everything easier. In business and our personal lives, it often seems as if the only way to get more done is by putting in more time—more hours at the office, more days running errands. But what if there were a way that we could do less, and free up more time for the things and people we love? If this sounds like what you need, Ari Meisel—TEDx speaker, efficiency consultant, and achievement architect—has the program for you. In \
  Less Doing, More Living\
, Meisel explores the fundamental principles of his “Less Doing” philosophy, educating the reader on:Optimizing workflow with twenty-first-century apps and toolsCreating an “external brain” in the Cloud to do all of your “lower” thinking—like keeping track of appointments, meetings, and ideasHow to use technology to live a paper-free lifeThe three fundamentals of wellness—fitness, sleep, and nutrition—and technological  approaches to improving these areas of lifeAnd so much more!This book will give readers new tools and techniques for streamlining their workload, being more efficient in their day-to-day activities, and making everything in life easier.

Three former CIA officers - among the world’s foremost authorities on recognizing deceptive behavior - share their proven techniques for uncovering a lie.Imagine how different your life would be if you could tell whether someone was lying or telling you the truth. Be it hiring a new employee, investing in a financial interest, speaking with your child about drugs, confronting your significant other about suspected infidelity, or even dating someone new, having the ability to unmask a lie can have far-reaching and even life-altering consequences.As former CIA officers, Philip Houston, Michael Floyd, and Susan Carnicero are among the world’s best at recognizing deceptive behavior. Spy the Lie chronicles the captivating story of how they used a methodology Houston developed to detect deception in the counterterrorism and criminal investigation realms, and shows how these techniques can be applied in our daily lives.Through fascinating anecdotes from their intelligence careers, the authors teach listeners how to recognize deceptive behaviors, both verbal and nonverbal, that we all tend to display when we respond to questions untruthfully. For the first time, they share with the general public their methodology and their secrets to the art of asking questions that elicit the truth.Spy the Lie is a game-changer. You may never experience another book that has a more dramatic impact on your career, your relationships, or your future.©2012 Philip Houston, Susan Carnicero, Don Tennant, Michael Floyd (P)2012 Macmillan

The innovative investor's guide to an entirely new asset class--from two experts on the cutting edgeOne of the fastest growing investment opportunities in the world today, blockchain assets such as bitcoin and other cryptocurrencies are changing the way investors think, use, and grow their money. This clear, concise, and accessible guide from two industry experts is the first book of its kind to explain this brave new world to investors who want to explore the potential of blockchain assets in their portfolios.It gives readers an understanding of how this new asset class has evolved over the last decade, as well as an actionable framework with which to evaluate new blockchain assets and position investment portfolios in the coming wave of blockchain asset innovation. Investors will learn how to securitize these assets in familiar investment vehicles and leverage multiple platforms to achieve their financial goals. This is the future of money.

About the Book: The Paradox of Choice. In the spirit of Alvin Tofflers Future Shock, a social critique of our obsession with choice, and how it contributes to anxiety, dissatisfaction and regret. Whether we're buying a pair of jeans, ordering a cup of coffee, selecting a long-distance carrier, applying to college, choosing a doctor, or setting up a 401K, everyday decisions have become increasingly complex due to the overwhelming abundance of choice with which we are presented. In The Paradox of Choice, Barry Schwartz explains why too much of a good thing has proven detrimental to our psychological and emotional well-being. In accessible, engaging, and anecdotal prose, Schwartz explains how a culture that thrives on the availability of constantly evolving options can also foster profound dissatisfaction and self-blame in individuals, which can lead to a paralysis in decision making and, in some cases, depression. With the latest studies on how we make choices in our personal and professional lives, Schwartz offers practical advice on how to focus on the right choices, and how to derive greater satisfaction from choices that we do make. About the Author: Barry Schwartz Barry Schwartz is the Dorwin Cartwright Professor of Social Theory and Social Action at Swarthmore College. He is the author of several books, including The Battle for Human Nature: Science, Morality and Modern Life and The Costs of Living: How Market Freedom Erodes the Best Things in Life. His articles have appeared in many of the leading journals in his field, including the American Psychologist. He lives in Philadelphia, PA.

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