I had the privilege of proofreading early drafts of this book, and I am happy to report that Charles Mizrahi has written a great book called Getting Started in Value Investing. It is a clear guide written by an author with many years of experience in writing newsletters and managing money intelligently.
This book serves as a clear guide from the basic beginning steps to the "things to watch out for" ending summary. I recount his rational guide path here: Chapter 1 begins with the misconceptions of Value Investing. Chapter 2 follows with the basics of sensible value investing. Chapter 3 warns us about Mr. Market. Chapter 4 covers Great Companies, and explains why they may become great investments. Then, in Chapter 5, Mizrahi explains why good managements add more value. Chapter 6 covers the issue of competition and the importance of enduring competitive advantages. Chapter 7 covers the Essential Valuation Variables that matter and Chapter 8 brings these numbers to life. Chapter 9 explains the critical issue of Price of a Stock versus the Value of the Company. Chapter 10 examines our own psychological biases. Then, in Chapter 11, Charles Mizrahi summarizes the essence of the Graham-Dodd-Buffett-Munger style of equity value investing.
While everyone may take a little different approach to measuring both quantitative and qualitative value; in my view, each of these eleven chapters delivers something especially valuable to the reader. They help to get us closer to the real intrinsic value of a business.
When Charles first told me of his project to write an introductory book on Value Investing for the Wiley investment series that is based on the Warren Buffett value approach to stock investing, I challenged him to swing for the fences and cleverly twist it into a book that could yield enduring value like Ben Graham's classic, The Intelligent Investor. I think that this book delivers because it gives us useful and valuable information in each chapter. The Mizrahi kids should be proud of what their dad has crafted. This book should be in every library.
Since "Getting Started in Value Investing" delivers sound investing principles, and it is written in a clear paternal style, it has a good chance of becoming a bestseller. Charles Mizrahi clearly explains the core of the Graham-Dodd-Buffett-Munger style of equity value investing.
Managing Partner, Labitan Partners, llc.