Bogumil K. Baranowski just published a book called "Outsmarting the Crowd," his day job is managing a private investment fund at Tocqueville Asset Management, and he has over a decade of investing experience. Like so many professional money managers, he lives and works in New York City. What I loved about the book is that Baranowski is truly passionate about helping readers develop a succesful investment style. The book's summary says its about the Buffett-Graham style of investing, but I think Baranowski's presented teachings are much more in the late Warren Buffet style of investing. Buffet/Fisher would be a more apt comparison in my humble opinion.
Why you should not read this book
If you have read everything under the sun available in the investment section of your favorite book store, then this is not a mandatory buy. Unless you are trying to put together a complete library of investment literature, of course. It's written well enough with a down-to-earth tone of voice and without any unnecessary complicated slang or math, but it doesn't add must-have knowledge when you have already taken in everything in the classics, which I'll narrowly define for this purpose as everything by Warren Buffett (Trades, Portfolio) (especially the shareholder letters), Peter Lynch, Philip Fisher, Joel Greenblatt (Trades, Portfolio) and Benjamin Graham. The same thing is true if you are an experienced investor who is set in his or her ways and is only looking for high level information to make adjustments to your strategy. You just will not find enough here.
Great read for those thinking about starting to invest and those still developing their investment strategy
"Outsmarting the Crowd" is very helpful if you are taking your first few steps on the DIY investment path or are still developing a strategy you are comfortable with. It helps with both qualitative and quantitative individual stock selection, without using too much complicated language like I just did.
The book's structure is built on philosophy, path and principles. The best chapters are those on philosphy and principles. Baranowski talks extensively about the importance of philosphy even though this is somewhat of a tough concept for beginning investors, it is done well and will make you think about the right things. In principles, Baranowski talks about his own basic principles while warning that these are not for everyone. Its his principles that make me put him in the Buffett/Fisher school, which is a type of GARP investing. Buy solid sound companies but be very wary about the price you pay.
If you are thinking about investing but haven't done so yet, this could be a great book as Baranowski might help convince you to take the plunge.
If you are developing your investment strategy and you are attracted to the GARP style of investing, as succesfully practiced by Warren Buffett (Trades, Portfolio) over the past few decades, then this book is an excellent one to help you along the way. You'll learn how to do basic valuations but without intimidating math, and learn the importance of adhering to your philosophy.
