Applied Equity Analysis

About the book and its Contents

Spanning 420 pages, Applied Equity Analysis is one of the most expensive finance books I have ever invested in a few years back. It is also a very highly advanced work which requires a fair amount of knowledge in finance. You do not however, need to be a stock trader working in a stock brokerage firm to understand the chapters.

The first chapter gives an introduction to the life of an equity analyst. the fundamentals of stock behavior and some frameworks for understanding the firm's business environment. The second part of the book expounds on the tools you will need such as reading financial statements. The third part discusses financial modeling, The last parts end with the discussion on equity valuation and the writing down of the report.

Review

There is a great amount of knowledge that can be obtained from this work. Furthermore, this book is done with a more practical teaching approach instead of an entirely theoretical one. It contains many real-life examples of companies listed in the U.S. It also contains a lot of charts and formulas. The only thing lacking with this work however is that it does not teach you how to encode the formulas in Microsoft Excel. The reader should be the one to find a way on how to incorporate it for his own use.

Difficulty Level = 4/5

This work is suitable for those with advanced knowledge in investments and finance.

Personal Rating = 4/5

Although quite expensive, this is one of the most authoritative reference books you can find in finance.



Personal finance tip for today:


Do not spend everything you earn as if the world will end tomorrow. What if the world didn't end and life continued to move on? How will you survive then? Regardless of how much you earn, you should allot a sizable percentage of your income to your personal savings. Having a pool of savings to sustain you in times of need reduces a lot of stress.


Recommended link:

Rich Dad's Guide to Investing

About the book and its Contents

This 406 page book is Robert Kiyosaki's guide to investing, which are advice passed on to him by his 'rich dad'. The first chapter is an introduction asking the reader if he or she is prepared to be an investor? The second chapter discusses what are his or her investment options available. Most of the succeeding chapters offer valuable investment lessons. The last remaining chapters focus on the categories of investors (of their various levels).

Review

Many of the lessons being taught in this book make sense. But I feel that this is more of an introduction and mental preparation for other books that offer greater details on the actual investments you can choose from.



In essence however, this book encourages you to invest in your own business and have it publicly listed. The book gives you some mental aspects you need to have in order to have better chances of succeeding. 

Difficulty Level = 1/5

If you've had an easy time reading Rich Dad Poor Dad, you will find this book easy to read, although a bit more challenging.

Personal Rating = 1/5

To know more about where the middle class and poor should invest in, other investment books are recommended.



Personal finance tip for today:

Controlling expenses can be difficult if you cannot differentiate between what you really need and what you really want at the moment. Hence, you must learn to delay gratification to save more. It doesn't mean however, that you should have zero gratification.




Recommended links:

Rich Dad's Guide to Investing: What the Rich Invest in, That the Poor and the Middle Class Do Not!

Before You Quit Your Job

About the book and its Contents

This 260 page book is authored by the popular Robert Kiyosaki, best known for his work Rich Dad, Poor Dad. This book gives 10 lessons packed in 10 chapters, which talk about the kinds of money, the differences between an entrepreneur and employee, as well as the differences between school smarts and street smarts.

Review

This book does teach you some important lessons you will need before you quit your job and start a business. However, it seems to downplay the risks involved in doing so. Or at least it encourages you to take more risk than what is in your comfort zone. This book is also not about how to create a successful feasibility plan for business as the lessons are not organized properly. 

Difficulty Level = 1/5

This is an easy to read book but I find that the lessons being taught are inadequate and a bit generic.

Personal Rating = 2/5

Before you quit your job, I suggest you read a more serious book about starting your own business. It would be unwise to risk your relatively stable job if you do not have a good business plan and a backup plan in case the assumptions go wrong.



Personal finance tip for today:


Even if you have a stable job, it is always best to store a cash balance of at least 3 months' worth of monthly expenses. You never know when a disaster or emergency might strike and need hard cold cash.




Recommended links:

The Citibank Guide to Building Personal Wealth

About the book and its Contents

This 240 page work was made by Citibank, not just for its clientele but for any interested reader, particularly those based in the Asia Pacific region. The first chapter discusses the creation of wealth for the long-term. The second chapter is a discussion of the financial life stages and how these change as one gets older. The succeeding chapters provide a glimpse and elaboration on most bank products/services.

Review

This is one of the first personal finance books I have read and I found it to be quite interesting. It is easy to read and it gave a lot of case examples to explain the concepts.

Difficulty Level = 1/5

This is another easy read. 

Personal Rating = 5/5

For those who want to to understand a little more about bank products such as bonds and stocks, as well as collective investments (e.g. UITF, mutual funds), then this is a book you should start reading.


Personal finance tip for today:

Start saving while you are earning. Do not wait for your salary to reach a certain point or to someday win the lottery. Someday, you will need to rely on your accumulated savings. It can come much sooner than you expect.

Recommended links: