The book’s title does little justice to convey the usefulness of this sound and informative read. If you are a relatively new investors lacking formal financial or accounting studies this book will serve you well by covering and clearly explaining essential financial investment topics. Even the more experienced could benefit with a refresher on investment concepts simply forgot or just never fully understood their importance.
Mauriusz Skonieczny succinctly provides short examples of the economic impact of capital allocation decisions such as expanding the business, reinvesting in the business, share buybacks, debt reduction, or the distribution of dividends. The book also covers concepts such as identifying economic moats, margin of safety, stock valuation, discounting future cash flows all with easily understandable examples. Many other concepts covered such as when to sell, company analysis, capital structure, diversification, investing in IPOs, analyzing an investment, real estate versus stocks along with other nuggets of useful ideas for anyone.
This book with only 150 pages makes a perfect read for those that want an understanding of the qualitative and quantitative investment finance topics useful for all serious or soon to be serious investor.
I receive no compensation for writing this review