Comments on: Investing Book Review: Why are we so clueless about the stock market

By: Jae Jun

Jae Jun — Wed, 25 Nov 2009 06:30:04 +0000

Yeah P/E is a useless ratio most of the time unless a company is so obviously undervalued you can immediately tell.

By: Jim

Jim — Tue, 24 Nov 2009 18:31:02 +0000

I love special situations. I was unaware of that. I was under the impression it had to do with his magic formula which is derived from a P/E ratio that is often times inaccurate due to GAAP accounting rules.
.-= Jim´s last blog ..Interesting Video’s to Watch =-.

By: Jae Jun

Jae Jun — Tue, 24 Nov 2009 07:22:37 +0000

Greenblatt’s You Can Be A stock Market Genius is actually all about special situations. Spin offs, merger arbitrate, bankruptcies, stubs and tenders. It really is an engaging good book but only if you are into special situations.

By: Jim

Jim — Mon, 23 Nov 2009 20:27:36 +0000

I liked F Wall Street and Greenwald’s is on my top list; possibly my #1 pick. I haven’t read Greenblatt’s book but I’ve read a lot about it. I’m not a fan of the P/E measurement therefore I doubt I’ll ever purchase the book. I just got Greenwald’s new book “Globalization” in the mail today and look forward to reading it. I’ve had his “Competition Demystified” book for while but haven’t had a chance to start reading it yet. It delves into defining a moat which I’m sure is pretty obvious to most of us but I’m interested in what he has to say about it. The book is huge so I’m sure he gets very deep as most of his writings do.
.-= Jim´s last blog ..Interesting Video’s to Watch =-.

By: Jae Jun

Jae Jun — Sun, 22 Nov 2009 23:02:11 +0000

Definitely F Wall Street and it’s a toss up between the two Green men. Greenwald’s EPV or Greenblatt’s Stock Market Genius. Pat Dorsey’s books comes just behind. Only because it isn’t based on analysis.

By: Jim

Jim — Sun, 22 Nov 2009 06:53:22 +0000

What’s your other 2?
.-= Jim´s last blog ..Interesting Video’s to Watch =-.

By: Jae Jun

Jae Jun — Sat, 21 Nov 2009 09:12:04 +0000

Quality of Earnings has actually become one of my top 3 favorites. Timeless book, advice and techniques.

By: Jim

Jim — Sat, 21 Nov 2009 00:04:51 +0000

I’ll second the Quality of Earnings recommendation. It’s one of the most thorough and knowledgeable books I’ve encountered.
.-= Jim´s last blog ..Interesting Video’s to Watch =-.

By: Jae Jun

Jae Jun — Fri, 20 Nov 2009 03:26:21 +0000

Andrew, Quality of earnings is fantastic. Greenwald's EPV book is also excellent. Analysis of Financial Statements (Bernstein & Wild) is another good one. It goes through a ton of ratios for each aspect of analysis and discusses each one in a comprehendable way.

By: andrew

andrew — Fri, 20 Nov 2009 01:16:20 +0000

jae,
you mention that this book doesn’t devle into “analyzing” a compnay…what book would you recommend that does?
Thanks,
Andrew
p.s. thanks for your always thoughtful, valuable pieces.

By: Jae Jun

Jae Jun — Thu, 19 Nov 2009 02:25:30 +0000

Tyler,

There are several tools and methods that you could use.
DCF, Graham, Liquidation, EPV, multiples method are the ones I use regularly. I’ve written about it a lot. Just do a search and you’ll find it all.

By: Tyler

Tyler — Wed, 18 Nov 2009 07:19:08 +0000

what valuation tools can i use and how do i use them

all i know is

DCF
P/E etc.
ROE/RRR * Share holder equity / shares outstading