The 5 Keys to Value Investing

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Editorial Reviews taken from Amazon

[Image: 5_keys_to_value_investing.jpg]


Review

"...a great how-to guide for both beginning and experienced value investors...a terrific addition on this time-tested methodology." -- Eric T. McKissack, Vice Chairman, Ariel Capital Management/Ariel Mutual Funds

"practical, insightful, and a great roadmap to not only value investing but how to make money in the stock market." -- Joel Greenblatt, Managing Partner, Gotham Capital

Product Description
How to determine what stocks are really worth­­ and buy the best at a discount

"The Five Keys to Value Investing is practical, insightful, and a great roadmap to not only value investing but how to make money in the stock market." -- Joel Greenblatt, Managing Partner, Gotham Capital

"Jean-Jacques has written a great how-to guide for both beginning and experienced value investors. He skillfully draws on the canon and legacy of the great value investors, such as Graham and Buffett…a terrific addition on this time-tested methodology." -- Eric T. McKissack, Vice Chairman, Ariel Capital Management/Ariel Mutual Funds

Investors left to pick up the pieces of the shattered stock market are rediscovering value investing­­ the time-tested technique based on assessing and buying businesses as opposed to "picking" hot stocks. The Five Keys to Value Investing provides a methodical framework for using value analysis to uncover investment opportunities based on their business strengths, and building a solid portfolio of stocks that is destined to provide superior long-term returns.

Written by a professional value investor who worked for the best, The Five Keys to Value Investing explains how to answer the four basic questions of value investing:
* Does this stock represent a good business to own?
* What is its balance between price and value?
* What specific events will spur it to appreciate?
* What are the stock's safety levels?

Review by a guy called A Reader

This is a wonderful book on the principles of value investing. The author does a fantastic job putting together (in a very understandable way) some of the most important tenets that every value investor should uphold. The book starts with "The Mind of the Value Investor"- which I believe to be the book's most important chapter. Here, Mr. Jean-Jacques describes what many successful practitioners believe to be the most critical attribute to becoming a good investor... and that is emotional intelligence. After examining the book a great detail (my copy is dog-eared, highlighted and well marked up), I would consider the following sections to be most important:

-- All of Chapter 1
-- Business Quality Red Flags (in Chapter 2)
-- Assessing Value: Tools to Consider (in Chapter 3)
-- All of Chapter 4
-- Identifying the Opportunity (in Chapter 6)
-- Appendices A, C and E

What I did not like about the book was the length. While it what not as lengthy as some books of this type might be, "The Five Keys to Value Investing" should have been much more concise in the breadth of topics and concepts covered. Also, the examples were good but were too many in number while using analytical concepts that might be a bit too philosophical for non-professional value investors, like me. However, on a lighter point, the analogy between the game of golf and value investing in Chapter 6 was very insightful and much appreciated (it was the only light moment in the entire book!!)

Look, this book is an absolute buy. No question about that. Readers just have to be a bit skilled in order the get the most out of this very informative and thorough work.



Specuvestor: Asset - Business - Structure.
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