The book has some useful content. Provides highlights of a company’s strengths. Fornexample, for Deere, it provides the various product categories, and spells out that 80 pct of business comes from Agriculture. The point about agriculture becoming increasingly relevant for next multiple decades, while obvious after reading this may not he so obvious otherwise.
The book has a section - “reason for caution”. While this is a good idea, it is quite light in content. For beer consumers, think bud lite vs dark beer - India Pale Ale for example.
The Financial strength section does not even talk about balance sheet for 80 plus pct of companies in the list of 100.
For example, our readers are well aware that telecommunications companies such as Verizon carry a lot of debt. There is no mention of the Debt Verizon carries. Or cash. Or if cash flow minus Capex plus cash in hand is sufficient to tackle this debt. There is an over emphasis on buybacks. As if that does the investors any good over the long term. One trend that becomes obvious is several companies have slowed down or eliminated buybacks as their stocks have taken a hit. Nary a mention of this behaviour that destroys shareholder value, slowly but surely.
The biggest sin is not providing the current share price with date for that price and the current market cap. Revenues and earnings are provided. But without market cap how is an investor to determine the valuation wrt sales and earnings or cash flow.
The low and high prices through 2014 are provided. For a book that is about stocks for 2016, why not provide the corresponding prices for 2015 (till the date available) and the price of the stock and it's market cap at the time the particular stock was being studied?
And here is my deal with mass manufactured books about what stocks to buy. Just the fact that they are mass manufactured and every Tom Dick Harry can buy them will skew the markets. Stupid hogwash.
Waisai bhi - the markets are way to complex now to be able to say buy stock and get rich. There are leverages to worry about, there is hedging... so much more then apply buy karo... and win.
And here is my deal with mass manufactured books about what stocks to buy. Just the fact that they are mass manufactured and every Tom Dick Harry can buy them will skew the markets. Stupid hogwash. AGREED.
Waisai bhi - the markets are way to complex now to be able to say buy stock and get rich. AGREED PARTIALLY. HOWEVER, ONE CAN LOOKNAT MARKET VALUATION VS HISTORICAL TO GAUGE ITS ATTRACTIVENESS OR LACK THEROF. There are leverages to worry about, YES - THAT IS WHY BALANCE SHEET ANALYIS IS A MUST (ALONG WITH INCOME AND CASH FLOW STATEMENT - THIS BOOK DOES NOT DO KUCH OF BALANCE SHEET ANALYSIS) there is hedging A LONG TERM INVESTOR DOES NOT NEED TO TAKE THIS INTO ACCOUNT, IMHO... so much more then apply buy karo ... and win.
