|
| |  |
This item may be eligible for  . Get FREE two day shipping.
See this item's eligibility during checkout.Science & Nature | Home » » » The Little Book That Builds Wealth: The Knockout Formula for Finding Great Investments (Little Books. Big Profits) | | | | | | | Description: | | In The Little Book That Builds Wealth, author Pat Dorsey—the Director of Equity Research for leading independent investment research provider Morningstar, Inc.—reveals why competitive advantages, or economic moats, are such strong indicators of great long-term investments and examines four of their most common sources: intangible assets, cost advantages, customer-switching costs, and network economics. Along the way, he skillfully outlines this proven approach and reveals how you can effectively apply it to your own investment endeavors. | | | Features: | |
• ISBN13: 9780470226513
• Condition: NEW
• Notes: Brand New from Publisher. No Remainder Mark.
•
| | | Product Details: | | | Author:
| Pat Dorsey | | Hardcover:
| 126 pages | | Publisher:
| Wiley | | Publication Date:
| March 03, 2008 | | Language:
| English | | ISBN:
| 047022651X | | Package Length:
| 7.17 inches | | Package Width:
| 5.43 inches | | Package Height:
| 0.94 inches | | Package Weight:
| 0.57 pounds | | Average Customer Rating:
|  based on 14 reviews |
| | | | Customer Reviews: | |
Average Customer Review:
Write an online review and share your thoughts with other customers.
A sensible approach to picking stocksNov 02, 2009
How do you pick stocks? Do you pay attention to earnings? Chart patterns? Growth potential? Your Uncle Morty? Instead of all that, use the same basic system that investment guru Warren Buffett perfected: Look for solid profitable companies that own a piece of the market, buy their stock and hold it a long time. Morningstar, the investment research company, uses the same approach to analyze and rate stock values. Its director of equity research, Pat Dorsey, explains its stock analysis system in this small volume. The stock selection system calls for seeking companies with protected unique advantages, called "economic moats." What sounds straightforward in theory may not be as easy in practice: Finding a structurally protected stock today is not necessarily a simple stroll across the drawbridge. Still, getAbstract finds Dorsey's presentation succinct and readable, and recommends it to investors who are not yet familiar with value investing and similar approaches.
1 of 2 found the following review helpful:
 Moat is KingAug 12, 2009
Warren Buffett coined the term moat which represents a competitive advantage that a company can possess over its competitors. Pat Dorsey did a great job explaining what a moat is and categorized it into four categories: Intangible Assets, Switching Costs, Network Effect, and Cost Advantages. Whenever I talk to a potential client or give a seminar on investing, I always talk about moats stemming from four sources that Mr. Dorsey explained. I absolutely loved this book.
- Mariusz Skonieczny, author of Why Are We So Clueless about the Stock Market? Learn how to invest your money, how to pick stocks, and how to make money in the stock market
1 of 1 found the following review helpful:
Useful guide to differentiating companiesJun 28, 2009
Think of a strong brand.
Take Tiffany's, explains Dorsey. Remove a Tiffany diamond from the blue box, and it looks no different than one sold by Blue Nile, he explains. Yet, Tiffany's is able to charge more than competitors.
Or take Bayer aspirin, says Dorsey. Bayer can charge almost two times as much as generic aspirin, making it a power brand.
If a company can charge more for the same product just by selling it under a brand, it's likely that you have a wide economic moat and a stock that is worth considering.
These are simple, straightforward lessons any reader can benefit from.
To the pointJun 27, 2009
A book that fulfilled my expectations. Put the quality in front of the numbers and gave me specific methodology to look through companies choosing those that are more important to those that are just part of the crowd. I believe that I read through business articles with a different set of glasses and see them through a different prism.
The Knockout Formula for Finding Great InvestmentsFeb 05, 2009
If Michael Porter's "Competitive Advantage" can be seen as the first book that conclusively illustrates "managerial" competitive advantage, Pat Dorsey's "The Little Book That Builds Wealth" can be seen as the first book that conclusively illustrates "investing" competitive advantage (I do not regard Warren Buffett's annual reports as a book). Many people invest by reacting, "My brother-in-law recommended it" or "I read about it in Money". It's also easy to get distracted by daily price gyrations and pundits who pontificate about short term market swings. Far better to have a conceptual anchor to help you evaluate stocks and build a rational portfolio. That's when investing competitive advantage, what Warren Buffett calls economic moats are invaluable. This book primarily deals with businesses that can generate above-average profit for many years, despite intense and constant competitive threats. Return on capital is the best benchmark of a company's profitability. It measures how effectively a company uses all of its assets - people, factories, investments - to make money for shareholders. Companies with strong competitive advantage can regularly post return on capital at 20+ percent, which is a rate of return very few money managers can achieve over long periods of time. This book provides a sensible framework for identifying companies that can sustain high return on capital. It tells the reader how to look for durable competitive advantage in choosing equities. The 4 sources of competitive advantage are: (1). Intangible assets; (2). Switching costs; (3). Network effects and (4). Cost advantage. These 4 sources of competitive advantage are elaborated throughout the book. Digest this book and you will develop a solid foundation for making smart investing decisions.
| | |
Huge Savings!
|  | | Look out for the Open Box Items and Grab'em before they're gone! |
|
