Good list of books.
Personally, I would read the intelligent investor last. Security analysis is more like a textbook than a book so I don’t think you will have to read every single page.

Reading financial statements should always be at the top of the list.

i got lucky my parents bought me 4 books
- the intelligent investor
- security analysis 6th edition
- Valuation Techniques
- Reading Financial statements

im reading the intelligent investor 1st what should i read next thanks.

what valuation techniques do u use?

Robert Sobel helped Thornton O’Glove write the book ‘Quality of Earnings’.
.-= Jim´s last blog ..Did Value Investor Mark Sellers Over-Value PRXI? =-.

The author doesn’t like dividends. He says that companies that pay dividends are too set on either increasing or maintaining even when the company is clearly in trouble.

Rather than admit that they are in trouble and need to use the excess cash back in its operations they raise it or still try to pay it. BAC last year is a prime example.

Another way management use dividends it to maintain their stock price so that when it comes time for them to require financing, they can get a better deal.

I personally have never really focused on dividends. If a company pays it, that’s ok, but whether they do or don’t, it doesn’t affect my decision.

I’m thinking of adding a DDM to the spreadsheet. Never used it before as it doesn’t apply to what I look for but many other users may like it.

What’s your experience with the DDM?
Any advantages, disadvantages?

I wonder if this book is similar to “Financial Shenangians”? … which focuses on how companies try to inflate their earnings and utilize accounting metrics to distort their net income and cash flow statement.

It includes a list of things to look for that may cause for red flags.

Also, what did this author say about dividends matter? And, on a tangent, how have you accounted for dividends in your models? Do you use the DDM approach from time to time?

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