5 ms·

Any book recommendations for someone who would like to learn more about GAAP, accounting, operational earnings, and/or how to evaluate stocks?

deleted 7y ago
[deleted]
pmohun 7y ago
Read the last twenty years of Buffet's letters. No snark intended. His letters intended for investors are the best use of your time rather than a book someone wrote for vanity.
- ms512 7y ago
  The Intelligent Investor by Benjamin Graham is a classic. Graham's approach shaped Buffett's. Personally, I found The Intelligent Investor to be more clearly written than Buffett's letters. It more clearly left me with a framework for how to approach value investing.
  - SuoDuanDao 7y ago
    Excellent book, and a timeless classic to be sure. I do find Buffet's letters very useful for making sense of the current landscape though.
  - yuy910616 7y ago
    thank you
  - arthurcolle 7y ago
    Security Analysis by Graham and Dodd was what Buffett used, since II wasn't out yet. A more difficult read as well, also seemed a bit dated when I read through it a decade ago.
- SuoDuanDao 7y ago
  Whenever someone asks me about sources on investing, I say the same thing - though I phrase it as 'buy one share of Berkshire Hathaway, it comes with a lifetime subscription to the thoughts of the most successful investor alive today'
  - reaperducer 7y ago
    Whenever someone asks me about sources on investing, I say the same thing - though I phrase it as 'buy one share of Berkshire Hathaway, it comes with a lifetime subscription to the thoughts of the most successful investor alive today' Since one share of BRK is almost $350,000 my guess is that not a lot of people you've said that to have followed your advice.
    - SuoDuanDao 7y ago
      BRK.B costs only 1/1000th of the A class shares, and you still get the letters. I couldn't afford an A class share either if that was all that was available.
  - gshubert17 7y ago
    One share of BRKB, Berkshire Hathaway class B, is around $230, which makes it much more affordable than the A shares.
- yuy910616 7y ago
  thank you.
CapriciousCptl 7y ago
* Best introduction: Financial Intelligence, Revised Edition: A Manager's Guide to Knowing What the Numbers Really Mean (Berman, Karen, Knight, Joe, Case, John, imusti) * Then read this, all of it, except perhaps most of the exhibits: Most recent Costco annual report (10-k). * Berkshire Hathaway annual letters, Transcripts from Berkshire annual meetings * Great follow-up: Financial Shenanigans, Fourth Edition: How to Detect Accounting Gimmicks and Fraud in Financial Reports (Schilit, Howard, Perler, Jeremy, Engelhart, Yoni, McGraw-Hill Education) * Absolute classic (but needs to be updated): The Intelligent Investor: The Definitive Book on Value Investing. (Graham) * On investing in general: Margin of Safety (Seth Klarman) * Great intro to valuation, with the caveat that modern finance and concepts like WACC may not necessarily be useful to your investing strategy: Valuation: Measuring and Managing the Value of Companies (Tim Koller, Marc Goedhart, David Wessels) * Another classic (but needs to be updated): Security Analysis (Graham and Dodd) I've read those in more-or-less that order, interspersed with plenty of other useful books that you'll discover depending how deep you go. The most important thing is reading 10-ks.
- yuy910616 7y ago
  this is very helpful. Thank you stranger
- simonebrunozzi 7y ago
  > Most recent Costco annual report (10-k) Never thought of reading it. Thanks for the tip. Why do you recommend it so highly?
  - CapriciousCptl 7y ago
    It's simple and there's enough information in it to value the business. The goal is getting up to speed reading 10-k's as fast as you can.
arbuge 7y ago
I think the recommendations you're getting here to read Buffett's letters, The Intelligent Investor, etc. are good, but if you're completely new to accounting, I think starting with more basic texts would be a better idea. Two that I liked and still refer to from time to time are How to Read a Financial Report by John A Tracy and Financial Statements: A Step-By-Step Guide to Understanding and Creating Financial Reports by Thomas R Ittelson.
- yuy910616 7y ago
  awesome. I'll check them out. thank you

deleted 7y ago

[deleted]

pmohun 7y ago

Read the last twenty years of Buffet's letters. No snark intended. His letters intended for investors are the best use of your time rather than a book someone wrote for vanity.

ms512 7y ago
The Intelligent Investor by Benjamin Graham is a classic. Graham's approach shaped Buffett's. Personally, I found The Intelligent Investor to be more clearly written than Buffett's letters. It more clearly left me with a framework for how to approach value investing.
- SuoDuanDao 7y ago
  Excellent book, and a timeless classic to be sure. I do find Buffet's letters very useful for making sense of the current landscape though.
- yuy910616 7y ago
  thank you
- arthurcolle 7y ago
  Security Analysis by Graham and Dodd was what Buffett used, since II wasn't out yet. A more difficult read as well, also seemed a bit dated when I read through it a decade ago.
SuoDuanDao 7y ago
Whenever someone asks me about sources on investing, I say the same thing - though I phrase it as 'buy one share of Berkshire Hathaway, it comes with a lifetime subscription to the thoughts of the most successful investor alive today'
- reaperducer 7y ago
  Whenever someone asks me about sources on investing, I say the same thing - though I phrase it as 'buy one share of Berkshire Hathaway, it comes with a lifetime subscription to the thoughts of the most successful investor alive today' Since one share of BRK is almost $350,000 my guess is that not a lot of people you've said that to have followed your advice.
  - SuoDuanDao 7y ago
    BRK.B costs only 1/1000th of the A class shares, and you still get the letters. I couldn't afford an A class share either if that was all that was available.
- gshubert17 7y ago
  One share of BRKB, Berkshire Hathaway class B, is around $230, which makes it much more affordable than the A shares.
yuy910616 7y ago
thank you.

CapriciousCptl 7y ago

* Best introduction: Financial Intelligence, Revised Edition: A Manager's Guide to Knowing What the Numbers Really Mean (Berman, Karen, Knight, Joe, Case, John, imusti) * Then read this, all of it, except perhaps most of the exhibits: Most recent Costco annual report (10-k). * Berkshire Hathaway annual letters, Transcripts from Berkshire annual meetings * Great follow-up: Financial Shenanigans, Fourth Edition: How to Detect Accounting Gimmicks and Fraud in Financial Reports (Schilit, Howard, Perler, Jeremy, Engelhart, Yoni, McGraw-Hill Education) * Absolute classic (but needs to be updated): The Intelligent Investor: The Definitive Book on Value Investing. (Graham) * On investing in general: Margin of Safety (Seth Klarman) * Great intro to valuation, with the caveat that modern finance and concepts like WACC may not necessarily be useful to your investing strategy: Valuation: Measuring and Managing the Value of Companies (Tim Koller, Marc Goedhart, David Wessels) * Another classic (but needs to be updated): Security Analysis (Graham and Dodd) I've read those in more-or-less that order, interspersed with plenty of other useful books that you'll discover depending how deep you go. The most important thing is reading 10-ks.

yuy910616 7y ago
this is very helpful. Thank you stranger
simonebrunozzi 7y ago
> Most recent Costco annual report (10-k) Never thought of reading it. Thanks for the tip. Why do you recommend it so highly?
- CapriciousCptl 7y ago
  It's simple and there's enough information in it to value the business. The goal is getting up to speed reading 10-k's as fast as you can.

arbuge 7y ago

I think the recommendations you're getting here to read Buffett's letters, The Intelligent Investor, etc. are good, but if you're completely new to accounting, I think starting with more basic texts would be a better idea. Two that I liked and still refer to from time to time are How to Read a Financial Report by John A Tracy and Financial Statements: A Step-By-Step Guide to Understanding and Creating Financial Reports by Thomas R Ittelson.

yuy910616 7y ago
awesome. I'll check them out. thank you