One of the benefits of being in the publishing industry is that I sometimes get access to pre-release copies of interesting books. That was the case recently when a co-worker gave me her galley copy of The Little Book of Value Investing. This is the second in the Little Book series. The first book was The Little Book that Beats the Market and I reviewed it here.
Even if my employer, John Wiley & Sons, Inc., weren’t the publisher of this series I’d still be telling you I totally love the approach in this series. Just like the Beats the Market title, the Value Investing one is short and sweet. Even a slow reader like me can get through it in an evening or two. I think every business book should be this short and direct, and I’ve tried to plead my case here.
The Little Book of Value Investing does a fine job explaining the way to find stock values and beat the market. Bargain hunters look for attractively low P/E ratios and/or book values. Although the Value Investing book doesn’t offer the simplicity of the first book’s companion website, it still presents a fairly simple approach to follow.
When I read The Little Book that Beats the Market I was so sold on the strategy that I switched brokers and dumped a lot of tech stocks I had been sitting on for the past 6 years. That was a couple of months ago and I haven’t taken the time to reinvest yet…until yesterday. I finally forged ahead and used the first book’s website to identify some good candidates. I then did some quick research on their history and products so that I’d get to know them better. Finally, I reviewed some of the ratios and other metrics outlined in the Value Investing book and made my first two new investments: Aspreva Pharmaceuticals and Career Education Corp. I plan to pick 8-10 additional companies this way over the next few weeks. Here’s to hoping my picks bear fruit!