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This book is a little gem for anybody who has difficulties
in understanding the investment philosophy of Benjamin
Graham.
Lowe, who has written extensively on Graham, explains many of the investment terms and
strategies given by Graham in his writings and relates them to current and up to date
business situations. She explains to the reader what value investment is and its
connection to both company growth and intrinsic value.
A particularly good chapter is the one on how to identify growth from the income
statements because, as readers are well aware, Warren Buffett’s
particular gift has been in finding companies selling at Graham prices but with great
growth potential.
This book has been criticised as being too simple for anyone with a sound knowledge of
investment principles. We agree; it is for those people who do not yet have an
understanding of Graham and Buffett investment techniques. For those in this niche, it is
a good start.
Another criticism is that the author wrongly suggests that Buffett supports
diversification in stocks. Technically, this is true. Warren has on several occasions
suggested that investors concentrate on just a few stocks. This does not however mean that
Buffett is against diversification per se. If you look at the investments of Berkshire
Hathaway, you will find, although only a few stocks, a wide diversification across
industries.
The book is easy to understand for even the most basic of investors, and is well
researched. The index, like many these days, leaves a lot to be desired. HIGHLY
RECOMMENDED FOR BEGINNING INVESTORS.
Purchase at Amazon.com
Value
Investing