Security Analysis: The Classic 1951 edition (reprint)

About the book

One could say that this is the bible of long-term investors, both literally and figuratively. This hardbound edition is 770 pages thick. Furthermore, it is said to be the foremost book in value investing, as it is authored by both Benjamin Graham and  his colleague David Dodd. Ben Graham is considered to be the father of modern security analysis. He also happens to be the mentor of the legendary Warren Buffett.

Contents

Most of the chapters cover discussions on fixed-income securities, valuation of common stocks, and analysis of financial statements. Most of the examples however, are railroad companies. These companies were part of the blooming industries back in the 1950s.  

Review

This book is not meant for those who are new and barely interested in investing. It is quite difficult to understand because most of the examples are hard to relate to (i.e. year 1950 railroad companies). However, any serious investor should at least read this book to get an appreciation of the fundamentals of value investing.  

Difficulty Level = 5/5

This book can be difficult to comprehend. Only a few, but very important lessons can be learned and still applied today.

Personal Rating = 5/5

To understand more about the beginnings of modern security analysis (i.e. stock or bond evaluation), one must definitely get a copy of this timeless work. 

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Buffett: The Making of an American Capitalist

About the book

This paperback edition is around 475 pages thick. It has also been replaced by a newer edition with a new cover as well.

Contents

This is a biography about Warren Buffett: undeniably one of the richest self-made billionaire investors in the world. His personal net worth at one point was around 50+ billion USD. The book begins with his birth in Omaha and ends with a chapter on the then-current events by the time the book draft was completed. 

Review

Roger Lowenstein, the author of the book, is one of the few who can write well about Warren Buffett. Though the book is quite lengthy, it is not boring at all to read, assuming you are truly interested in learning more about how Warren Buffett really thinks in several situations. It provides the necessary detail and the proper context for the generalizations people make about his investment policies and style. You will get to understand what he means by risk, margin of safety, and investment, as opposed to speculation. 

Difficulty Level = 3/5

For one who is not interested in reading biographies and not into finance, the reader might take considerable time before he/she finishes reading the book.

Personal Rating = 5/5

Having the proper mindset when it comes to investing is very important. For those who do want to understand Warren Buffett's investing style and personality. This book is very much recommended. Buffett is one the greatest investors we can learn from.

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Rich Dad's Cashflow Quadrant

About the book


Due to the popularity of Rich Dad, Poor Dad, this book was made to expound on the four income-earning quadrants. The paperback edition approximately has 359 pages.

Contents

The book expounds on the four income-earning quadrants. These are: Employee, Self-Employed, Businessman, and Investor. Kiyosaki discussses the numerous advantages of being a businessman and/or investor and cites the disadvantages of staying as an employee or self-employed. You can earn in all four quadrants but the potential for income (and might I say, loss) is also different.

Review

Most of the advice given on this book makes sense. But for me, the most controversial question to be asked is. Is a house an asset or liability? For Kiyosaki, it is a liability because a homeowner has to pay utility bills and real estate taxes. The house (that you live in) does not generate income. The only exception is if you're renting out that house or condo unit  to someone else and the rental income you receive exceeds all your real estate expenses.

It does make sense that a house is a liability. However, just because a house is classified as a liabilty does not mean that you should never buy one. After all, shelter a basic human need, and so is food. The important thing to remember is that the place you live in is something that you can afford within your means and maintain properly. Furthermore, there are assets in life that cannot be measured in financial terms.

Difficulty Level = 1/5



This book engages you in a conversational style and as such, is an easy read for those with little financial knowledge.

Personal Rating = 3/5

I would recommend this book for the young working professionals who belong to either the employee or self-employed quadrant. 


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Cashflow Quadrant: Rich Dad's Guide to Financial Freedom

Rich Dad Poor Dad

About the book

The 2001 paperback edition has around 266 pages. There is nothing unique about the paper used. It is authored by Robert T. Kiyosaki, along with Sharon L. Lechter, a CPA.
 
Contents

The first few chapters of the book contain lessons dad the author, Robert Kiyosaki, has learned from his 'rich dad'. The succeeding few chapters are about overcoming difficulties and on how to take the next steps towards financial freedom. 


Review

Like most young college graduates back then who were working as employees, I found this book to be very inspiring. It gives you a wake-up call by presenting the worst-case scenarios of being an employee and the best case scenarios of owning a successful business and having investments.

However, after some time, I, along with a lot of other readers, were disappointed with the quality of advice given in the book. In a way, it encouraged readers to quit their 'boring' jobs, build their own business, and face failure head-on.  Certainly, there is nothing wrong with quitting your job and building your own business.The capacity to face failure and recover from it is also important.  Anyone would agree with me that a person should have more than one source of income. If you lose your job due to a company downsizing or bankruptcy, you still have another source of income to sustain you through hard times. However, before starting any business venture, one should at least have a solid plan, and a backup plan. As to how to make that plan properly, one should find another book to read on.  












Difficulty Level = 1/5

Nonetheless, Rich Dad Poor Dad is a good read for those who are intimidated by terms such as corporate finance. It will give the reader the interest he or she needs to read more advanced finance books. 


Personal Rating = 4/5

For the benefit of the new working professionals, I recommend that they read this book, while they are working hard. After reading this book however, they should not quit their job as the book may imply. This book will serve as a good starting point to the subject of personal finance.


Related links

Rich Dad Poor Dad: What the Rich Teach Their Kids About Money-That the Poor and the Middle Class Do Not!

Happy New Year

To all bloggers and readers,

A happy new year to all!

To start the new year right, I have finally taken the initiative to create my own blog. After giving it some thought, I have decided to make Finance and Investment Book Reviews as the focus of this particular blog. I have several reasons for doing so. My first reason is that finance and investment books have helped improve my skills and understanding about personal finance. The second reason is that I want other people to invest more in personal finance books, and this blog serves to encourage them. My final reason is that I have a passion for reading this type of genre, which others may find to be boring, too academic, or simply expensive.

I will be posting reviews of the books I've already read on a regular basis. To make my blog easy to read, I will be adopting the following outline.

Book Title
(Picture of the book)
About the book - (its physical appearance) 
Contents
Review
Difficulty Level = a rating of 5/5 means that the book requires the reader to have a substantial amount of knowledge in finance; a rating of 1/5 means that the book is suitable to be read by those who have no knowledge whatsoever of finance
Personal Rating = a rating of 5/5 means the book is highly recommended while a rating of 1/5 implies that one should not spend for the book.
Related links = other websites which may offer additional insights into the book being reviewed.

Watch out for my next post!

Raymond Q.