Value investors will definitely start changing the way they make investments, or at least they will start preparing themselves for a decentralized world of investments. "What Would Ben Graham Do Now?: A New Value Investing Playbook for a Global Age" by Jeff Townson is a new value-investing book for global era. Previously, Towson, head of direct investments for Middle East North Africa and Asia Pacific for Prince Waleed, one of the richest men in the world, was named by Time Magazine The Warren Buffett of Saudi Arabia.
After reading this new playbook and keeping in mind the past role of the author, this book is targeted to giant value investors. You may call them whales of the investments’ world, whether these giant investors are hedge funds, pension funds, private equity firms, venture capital or high net worth individuals.
The book itself is different from other books on investments by not going over the old material and strategies again. The author assumes that if you are a value investor, especially a giant value investor, then you are aware of all old formulas. Townson assumes that you have read "The Intelligent Investor" and "Security Analysis."
At first I was nervous just from the title that Townson might be a “fake value investor.” However, after reading the book I am entirely convinced Townson in the real deal. You will not find any book like this that deals with value investing on a global stage in markets completely off the radar of Wall Street. One other notable thing is the flow of the book. It reads like a novel, and the author has made it easy to understand by using flow charts and Venn diagrams.
The author starts by introducing the rapid changing world of investments, further explaining the opportunities and challenges faced by value investors in the global era. Economies of the world are fundamentally different from each other and developing economies have started impacting the developed world more and more. The author introduces Ben Graham’s thinking while applying it in the changing world. The next two chapters of the book describe value points as a new framework for investments.
As mentioned before, Towson has spent less time in rehashing old formulas. Instead he suggests the strategy of B2B, back to balance sheet, instead of crunching numbers in income statements. Moreover, Graham’s methods are reapplied to different investing environments, and from this new strategies are developed for value investors.
Involvement of the government is viewed as a factor that reduces attractiveness of a company. Contrary to this view of value investment, political access is introduced as a useable tool in deal making. Chapters 4 and 5 discuss the role and relation with political figures in value making deals. Several examples are quoted to show how the hand of government can help an investor in countries with very different political systems than the USA.
The next two chapters discuss power of reputation and capital in the investing world, but alongside, Townson discusses the limitations of these factors as well. In this global era, cross border deals are increasing in number. Different economies have different political, legal, regulatory and economic systems. Difference in culture is a prominent challenge, which is discussed in the book. Reputation can be used in these cross-cultural deals to reap great benefits.
Chapters 8 and 9 talk about capabilities like management skills, brand identity and technology. These capabilities are moving from the developed world to the developing world as a result of cross-border deal making. Towson stresses the point that doing business in these frontier markets is going back to another era and being above board in relationships. Above-mentioned skills can contribute to success of deal making in such environments.
The following chapter combines all the tools and shows how these can be used together to succeed. Application of this approach has been demonstrated by examples of its usage by global tycoons, private equity firms and multinational firms. The second to last chapter describes a global investment playbook for coming years and explains investment strategies to be followed in the emerging era of investment.
The last chapter deals with the upcoming global era of investments, and the interaction of global investors and evolution of new strategies is described briefly.
This book is a cutting-edge tool in financial markets of the future. It is not only useable by giant value investors, but students of the field can also use it as a source of evolving knowledge.
I would not recommend this book to someone who has no prior knowledge of value investing. However, for someone who is well-versed in Ben Graham it is definitely a worthwhile read.
To purchase the book on Amazon.com click What Would Ben Graham Do Now?: A New Value Investing Playbook for a Global Age.
Disclosure: I receive free books from book publishers and authors asking me to review them. In addition I sometimes request specific books that look interesting. I try to review the books that I think will be the most interesting. I have a material connection because I received a free copy of this book from the publisher. In addition I receive a small commission if you click on the above link and buy the book (or anything else) from Amazon.com. However, it does cost you a penny more.
After reading this new playbook and keeping in mind the past role of the author, this book is targeted to giant value investors. You may call them whales of the investments’ world, whether these giant investors are hedge funds, pension funds, private equity firms, venture capital or high net worth individuals.
The book itself is different from other books on investments by not going over the old material and strategies again. The author assumes that if you are a value investor, especially a giant value investor, then you are aware of all old formulas. Townson assumes that you have read "The Intelligent Investor" and "Security Analysis."
At first I was nervous just from the title that Townson might be a “fake value investor.” However, after reading the book I am entirely convinced Townson in the real deal. You will not find any book like this that deals with value investing on a global stage in markets completely off the radar of Wall Street. One other notable thing is the flow of the book. It reads like a novel, and the author has made it easy to understand by using flow charts and Venn diagrams.
The author starts by introducing the rapid changing world of investments, further explaining the opportunities and challenges faced by value investors in the global era. Economies of the world are fundamentally different from each other and developing economies have started impacting the developed world more and more. The author introduces Ben Graham’s thinking while applying it in the changing world. The next two chapters of the book describe value points as a new framework for investments.
As mentioned before, Towson has spent less time in rehashing old formulas. Instead he suggests the strategy of B2B, back to balance sheet, instead of crunching numbers in income statements. Moreover, Graham’s methods are reapplied to different investing environments, and from this new strategies are developed for value investors.
Involvement of the government is viewed as a factor that reduces attractiveness of a company. Contrary to this view of value investment, political access is introduced as a useable tool in deal making. Chapters 4 and 5 discuss the role and relation with political figures in value making deals. Several examples are quoted to show how the hand of government can help an investor in countries with very different political systems than the USA.
The next two chapters discuss power of reputation and capital in the investing world, but alongside, Townson discusses the limitations of these factors as well. In this global era, cross border deals are increasing in number. Different economies have different political, legal, regulatory and economic systems. Difference in culture is a prominent challenge, which is discussed in the book. Reputation can be used in these cross-cultural deals to reap great benefits.
Chapters 8 and 9 talk about capabilities like management skills, brand identity and technology. These capabilities are moving from the developed world to the developing world as a result of cross-border deal making. Towson stresses the point that doing business in these frontier markets is going back to another era and being above board in relationships. Above-mentioned skills can contribute to success of deal making in such environments.
The following chapter combines all the tools and shows how these can be used together to succeed. Application of this approach has been demonstrated by examples of its usage by global tycoons, private equity firms and multinational firms. The second to last chapter describes a global investment playbook for coming years and explains investment strategies to be followed in the emerging era of investment.
The last chapter deals with the upcoming global era of investments, and the interaction of global investors and evolution of new strategies is described briefly.
This book is a cutting-edge tool in financial markets of the future. It is not only useable by giant value investors, but students of the field can also use it as a source of evolving knowledge.
I would not recommend this book to someone who has no prior knowledge of value investing. However, for someone who is well-versed in Ben Graham it is definitely a worthwhile read.
To purchase the book on Amazon.com click What Would Ben Graham Do Now?: A New Value Investing Playbook for a Global Age.
Disclosure: I receive free books from book publishers and authors asking me to review them. In addition I sometimes request specific books that look interesting. I try to review the books that I think will be the most interesting. I have a material connection because I received a free copy of this book from the publisher. In addition I receive a small commission if you click on the above link and buy the book (or anything else) from Amazon.com. However, it does cost you a penny more.
