Reading List

Fooling Some of the People all of the Time by David Einhorn

Security Analysis by Graham & Dodd  

Security Analysis is the bible of fundamental analysis. Originally published in 1934, the tome systematically lays bare the science of security analysis. Written with the assistance of cowriter David Dodd, Benjamin Graham's intellectual tour de force has yet to be equaled in the annals of investing. Written only a few years after the devastating stock market crash of 1929, Graham had one objective--to make the investment process as safe as possible using knowledge of key factors about the business.

Intelligent Investor by Ben Graham (Chpt 8 and 20, Buffet Appendix)

Ben Graham is single-handedly responsible for the fact that investors even think about ratios like the price/earnings ratio, the current ratio or working capital-to-market capitalization. Coming out of the stock market's total implosion in 1929 and throughout the '30s, Graham knew that he needed to discover logical rules that any investor could  use in order to attain safe, sustainable, market-beating results. He was so preoccupied with ensuring that anyone could duplicate his methods towards the end of his career that he often told his junior analysts at Graham-Newman like Albert Schloss or Warren Buffett that they could not involve themselves in complicated financial shenanigans to make money--it all had to be plain vanilla.

Investment Policy:  How to win the Loser's Game, by Charles Ellis

Ellis presents a fresh approach to professional investment management that involves active client participation. This incisive, easy-to-understand guide distills the nature of institutional investing and offers basic principles for meeting long-term investment goals.

A Random Walk Down Wall Street, by Burton G. Malkiel

An unconventional guide to investing in Wall Street tells how to put together a broad portfolio of stocks through sidestepping the experts and how to rate the potential of a stock, bond, money market fund, or other investment. 

The Management of Investment Decisions, by Donald B. Trone 

 Investment pros know: skyrocket stocks and high-flying money managers come and go, but you only achieve superior long-term results by sticking with a sound, prudent, well-conceived investment plan. In The Management of Investment Decisions, pioneering financial consultant Donal Trone, along with William R. Allbright and Philip R. Traylor, presents the proper ways to: Analyze your client's current position and potential; Develop an Investment Policy Statement that all involved will read and, more importantly, understand; Approach, understand and build the portfolios of high net worth families.

The Only Guide to a Winning Investment Strategy You'll Ever Need , by Larry E. Swedroe 

The Only Guide to a Winning Investment Strategy You'll Ever Need provides you with a road map to growth and investment opportunities that will help you become a successful investor who consistently makes money rather than loses it. In this guide, investment professional Larry E. Swedroe describes the crucial difference between "active" and "passive" mutual funds, and tells you how you can win the investment game through long-term investments in such indexes as the S & P 500 instead of through the active buying and selling of stocks. In clear language, he shows how the newer index mutual funds out-earn, out-perform, and out-compound the older funds, and how to select a balanced "passive" portfolio for the long haul that will repay you many times over.

"A Lesson on Elementary, Worldly Wisdom As It Relates To Investment Management & Business" (Article Charlie Munger Speech to USC Bus/School as published in Outstanding Investor Digest, 5/5/95)
 

Extraordinary Popular Delusions & the Madness of Crowds, by Charles Markay  

Why do otherwise intelligent individuals form seething masses of idiocy when they engage in collective action? Why do financially sensible people jump lemming-like into hare-brained speculative frenzies--only to jump broker-like out of windows when their fantasies dissolve? We may think that the Great Crash of 1929, junk bonds of the '80s, and over-valued high-tech stocks of the '90s are peculiarly 20th century aberrations, but Mackay's classic--first published in 1841--shows that the madness and confusion of crowds knows no limits, and has no temporal bounds. These are extraordinarily illuminating, and, unfortunately, entertaining tales of chicanery, greed and naivete.  Essential reading for any student of human nature or the transmission of ideas.

Common Stocks & Uncommon Profits, by Philip A. Fisher

Fisher is widely acknowledged as one of the pioneers of modern investment theory, and his philosophies continue to be regarded as  gospel by today's investors. This lassic investment book, first published in 1958, fascinates investors because it enables them to discern the origins of some of today's most popular investment philosophies.

Berkshire Hathaway's "Prior Annual Reports" 

Berkshire Hathaway's "Owners Manual" 

The Quest for Value : The Eva Team Management Guide, by G. Bennett Stewart

Investors looking for a way to quantify corporate performance have been traveling across an arid desert for too long. The mirages of "great management," "brand name," and other fuzzy concepts tease the investor who is thirsty for knowledge. Even earnings growth doesn't explain stock price performance. In his magnum opus, The Quest for Value: The EVA(tm) Management Guide, G. Bennett Stewart, III, explains what does drive the majority of shareholder value creation.

Investment Gurus : A Road Map to Wealth from the World's Best Money Manager, by Peter J. Tanous (Chapter Price, Gabelli, Sharpe, Part Three)

Professional investment consultant Peter J. Tanous has come to understand this after three decades in the field, and in Investment Gurus, he presents a wide range of tactics and strategies that have been developed by acknowledged stock-picking experts. At the heart of this book are Tanous's interviews with 18 top money managers and academics, including Mario Gabelli, William F. Sharpe, Peter Lynch, Laura J. Sloate, and Merton Miller. The book concludes with "Your Roadmap to Wealth," which summarizes the success factors common to each of the money managers interviewed and suggests ways to develop an "intelligent personal investment plan."

The Aggressive Conservative Investor, by Martin Whitman and Martin Shubik

Martin Whitman is a master value investor who has been successful for 3 decades, though recently becoming known to the masses through his Tird Avenue family of mutual funds. Anyone who has read some of his shareholder letters will recognize some of the concepts in the book, but they are presented in detail. This book teaches you to understand how "control" investors think, and to then learn how to evaluate annual and quarterly statements in a new light. Whitman is more than a value investor, of course, he is a vulture investor and proud of it.

Damodaran on Valuation : Security Analysis for Investment and Corporate Finance, by Aswath Damodaran

Valuation authority Damodaran (finance, NYU) offers an overview of the three basic valuation approaches for investment analysis: discounted cash flow, relative valuation, and contingent claim valuation. He shows how to apply the models within these classes by using case studies of actual firms, and also explains the purpose of each model, its pros and cons, the steps involved in applying it, and the types of firms to which it is most suited.

Valuation : Measuring and Managing the Value of Companies, by Tom Copeland, Tim Koller, Jack Murrin, (McKinsey & Company, Inc.)

Financial executives have hailed this book as the single best guide to economic value analysis. In reputation, quality, and prestige, it stands ahead of and alone in its field. Now completely revised and updated to reflect the most current business practices and conditions, Valuation delivers more potent strategies for measuring and enhancing the bottom-line value of any company.

Wall Street on Sale: How to Beat the Market as a Value Investor , by Timothy P. Vick 

Exceptional bargains can still be found in today's volatile stock market, and Wall Street on Sale will show you where to find them! Look to this insightful guide to identify undervalued companies destined to increase their earnings, net worth, and intrinsic value, plus: examples and case studies of top money managers who have used value investing techniques to consistently outperform the markets; guidelines for acting as a contrarian, ignoring the "stock-of-the-moment" crowd to evaluate companies based solely on their investment merits; over 150 valuable web site addresses where you can find free information on time-tested value companies, news and information resources, and more.

The Essays of Warren Buffett, by Lawrence Cunningham

From the author, "Anyone interested in corporate America will want to read and study this collection and have a copy available for handy reference."

One Up on Wall Street : How to Use What You Already Know to Make Money in the Market , by Peter Lynch

In easy-to-follow terminology, Lynch offers directions for sorting out the long shots from the no shots by spending just a few minutes with a company's financial statements. His advice for producing "tenbaggers" can turn a stock portfolio into a star performer!

Awaken the Giant Within : How to Take Immediate Control of Your Mental, Emotional, Physical & Financial Destiny! , by Anthony Robbins

The creator of acclaimed personal achievement programs and the author of the bestselling Unlimited Power reveals the proven steps to self-mastery. Robbins shares the secrets of his exclusive "Date with Destiny" seminars, describing how unconscious beliefs control our behavior and how we can make immediate changes to accomplish our goals.

Beating the Street, by Peter Lynch  

Beating the Street was Peter Lynch's follow-up to his bestselling book, One Up on Wall Street. Although many have accused him of writing the same book twice, his second time at bat allows him to add even more clarity to his basic message. Lynch, for those unfamiliar with the pantheon of investment gods, managed Fidelity's flagship Magellan fund for more than 20 years, compounding one of the most fantastic performance records ever. Although Lynch did not invent the "growth at a reasonable price" (GARP) approach to buying stocks, his unique spin on it allowed him to become one of the most successful portfolio managers ever.

The Warren Buffett Way : Investment Strategies of the World's Greatest Investor, by Robert Hagstrom

Buffett gets a lot of attention for what he preaches, but nobody has described what he practices better than Hagstrom. Here is the lowdown on every major stock he ever bought and why he bought it.  Fascinating.

Buffettology : The Previously Unexplained Techniques That Have Made Warren Buffett the World's Most Famous Investor, by Mary Buffett  

Buffettology examines Buffett's methods for valuing companies and selecting stocks--it even encourages you to buy a calculator and work through the valuation formulas that Buffett uses when researching companies to buy. The book not only serves as a useful guide to understanding how Buffett invests, it's an excellent primer to investing in stocks, whether you plan to become a Buffettologist or not.

Buffett:  The Making of an American Capitalist, by Roger Lowenstein  

This illuminating biography reveals a man whose conscientiousness, integrity, and good humor exist alongside an odd emotional isolation.  Buffett also masterfully traces his life: his enormously successful partnership; his early, inspired investments in American Express and Geico; his companionship and investment with Katharine Graham of the Washington Post; his role in the Capital Cities purchase of ABC; his unique relationship with his wife and mistress; and his rescue of the scandal-ridden Salomon Brothers.

Value Investing: From Graham to Buffett and Beyond, by Bruce C.N. Greenwald, Judd Kahn, Paul D. Sonkin and Michael van Biema

Described by the New York Times as the "guru to Wall Street's gurus," Bruce Greenwald is a leading authority on value investing. His courses and seminars on the subject have drawn some of the savviest people in the investment world. Now, along with some colleagues, Greenwald reveals the fundamental principles that have made value investing one of the most consistently profitable investment techniques.