Thursday, April 12, 2007

The Focus Investor - Book Review

The Focus Investor

What Is It About?

The book synthesizes fundamental investing by reviewing the teachings of several well known investors. Using the works of Graham, Fisher, Buffett, and Munger, the author focuses on the strengths of each. The author describes the distillation of the approaches as “Focus Investing.”

What Did I Get Out Of It As A New Investor?

A quality summary of what Graham, Buffett, and others teach with respect to fundamental investing. Covering topics such as accounting red flags, valuation, investor psychology, and the role of diversification, the author presents a theory of investing which highlights the main concepts from prominent value investors. Overall, this book provides to the new investor a means to quickly grasp the main heart of investing as practiced by Graham, Buffett, and the others.

The Good News

An excellent starting point for the new investor seeking an introduction to fundamental investing or for those having difficulty grasping the concepts.

The Bad News

While the book does synthesis the works of several great investors in one volume, for those who have read Graham, Fisher, Buffett, and Munger, this book may have limited appeal.

The Bottom Line

Well written and helpful book for the new investor.

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