Updates

  1. Person pages list letters, writing, profiles and links as sortable tables with filters, and show each person's companies as links; Fund letters show each letter's description in its own column.
  2. Experts show a checked job title and a short description of each person; 30 more people have photographs.
  3. Every company, fund, university and publication the experts work for has a page listing the people there.
  4. Fund letters show each letter's thesis and filter by it; 225 person pages list the essays, columns and newsletter issues the person wrote.
  5. Person pages list every essay and newsletter issue a person wrote, and their own books as a table in List view.
  6. Recommends shows the five largest kinds of book and the rest under More; browse pictures load sooner.
  7. Podcasts and talks link the original episode, filter by Audio and video or Press, and list each publisher once.
  8. Pages are wider, Recommends has List and Grid, and a filter clicked again turns off.
  9. Book cards sit in a ruled grid with Open Library and Goodreads links and each book's one-line note.
  10. Funds is now Investors; each investor's styles are buttons that filter the table.
  11. Podcasts and talks on a person's page filter by year and publisher and show as a list or a grid of pictures.
  12. Quotes show only people's own words: 472 summaries written by list sites are gone.
  13. Country pages open from Browse again, and every link on the shelf lands on a page.
  14. Subject and person pages show their sections as tabs, and each book appears once on a person's page.
  15. Book cards show the quote, who said it and the source; grids show five cards to a row.
  16. On a phone, a menu holds the sections, search, Updates, Feedback and dark mode.
  17. Feedback takes a screenshot of the page with no browser prompt, opens a screenshot full size when you click it, and clears itself once sent.
  18. Book cards are centred, search names the topic each book sits in, and any text cut short shows whole on hover.
  19. Search groups its results by kind: people, companies, geographies, subjects, topics, books, funds, fund letters and papers.
  20. The Books table lists who recommended each book by name, and the browser tab names the section you are in.
  21. Feedback can take a screenshot of the page, or one you paste or choose, and opens in the corner beside Updates.
  22. Each rail button reopens its section where you left it, and Browse, Table and People show on every book and subject page.
  23. Filters grey out choices that hold nothing instead of hiding them, and Books › People filters by authors or recommenders.
  24. Feedback takes a subject line and up to three screenshots.
  25. Biographies are grouped by the person they are about: 41 new pages, from Abraham Lincoln to Lee Kuan Yew.
  26. Sport splits into 23 sports, and Religion into one topic per faith.
  27. Book lists show as cards: the cover, one recommendation quote and every recommender by name.
  28. Seventeen subjects that had two or three pages under different names now have one page each.
  29. Every page lists its Experts as authors and recommenders, with a link to them on the Experts tab.
  30. Economics, Financial history, Financial panics and Accounting are subjects of their own, with one page per financial crisis.
  31. Book, person and subject pages open inside the app, so the tabs stay in view.
  32. 996 more book covers, and photographs or logos for 227 more people and companies.
  33. Books › Browse shows every subject as cards, and the rail holds Fund letters, Papers, Experts, Books and Funds.
  34. Every topic over 150 books splits into narrower topics, each with a page of its own.

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IV

Intrinsic Value

Mental models

What a business is worth to a silent owner: all the cash it will produce over its life, discounted to today. Because every input is an estimate, practitioners compute a conservative range rather than a point and compare that range with the quoted price. Price is an input to the transaction and never to the appraisal.

Books 16Experts 9Recommenders 14Resources 4

Start here

  1. The Little Book of ValuationAswath Damodaran, 2011
  2. Expectations InvestingAlfred Rappaport, Michael J. Mauboussin, 2001
  3. Valuation: Measuring and Managing the Value of CompaniesTim Koller, Marc Goedhart, David Wessels, 1990
  4. Security AnalysisBenjamin Graham, David L. Dodd, 1934
Security AnalysisSecurity Analysis
T1 Security Analysis
Benjamin Graham, David L. Dodd · 1934
Open LibraryGoodreads

How to read financial statements sceptically and value bonds and stocks.

“I've spent more time with all of the editions of Benjamin Graham and David Dodd's Security Analysis than with any other book” — Christopher Bloomstran

Source: Semper Augustus 2024 Letter to Clients, 'Books and Tunes for Walking', p. 95

Recommended by: Christopher Bloomstran, Howard Marks and 11 others

Valuation: Measuring and Managing the Value Valuation: Measuring and Managing the Value of Companies
T1 Valuation: Measuring and Managing the Value of Companies
Tim Koller, Marc Goedhart, David Wessels · 1990
Open LibraryGoodreads

McKinsey's guide to discounted cash flow valuation and managing for value.

Recommended by: Mohnish Pabrai and 1 other

The Theory of Investment ValueThe Theory of Investment Value
T2 The Theory of Investment Value
John Burr Williams · 1938
Open LibraryGoodreads

Recommended by: Mohnish Pabrai, Warren Buffett

Creating Shareholder ValueCreating Shareholder Value
T2 Creating Shareholder Value
Alfred Rappaport · 1986
Open LibraryGoodreads

Value is discounted future cash flow, not earnings per share or return on equity.

“I read that book and the light bulbs all went off for me personally.” — Michael Mauboussin

Source: The Tim Ferriss Show #659 — official transcript

Recommended by: Michael Mauboussin, Mohnish Pabrai

Expectations InvestingExpectations Investing
T2 Expectations Investing
Alfred Rappaport, Michael J. Mauboussin · 2001
Open LibraryGoodreads

Start from the share price and ask what results it expects a company to deliver.

Recommended by: Mohnish Pabrai

Value: The Four Cornerstones of Corporate FiValue: The Four Cornerstones of Corporate Finance
T2 Value: The Four Cornerstones of Corporate Finance
Tim Koller, Richard Dobbs, Bill Huyett · 2010
Open LibraryGoodreads

Four principles of corporate value, from McKinsey's valuation work, for executives.

The Little Book of ValuationThe Little Book of Valuation
T2 The Little Book of Valuation
Aswath Damodaran · 2011
Open LibraryGoodreads

Recommended by: Mohnish Pabrai

Value Investing: From Graham to Buffett and Value Investing: From Graham to Buffett and Beyond
T3 Value Investing: From Graham to Buffett and Beyond
Bruce C. N. Greenwald, Judd Kahn · 2007
Open LibraryGoodreads

Wiley published it in 2020.

“George has also written a book on value investing, From Theory to Practice, which I highly recommend.” — Prem Watsa

Source: Fairfax Financial 2021 Shareholders' Letter, p. 35

Recommended by: Mohnish Pabrai, Prem Watsa, Joel Greenblatt and 1 other

Damodaran on Valuation: Security Analysis foDamodaran on Valuation: Security Analysis for Investment and Corporate Finance
T4 Damodaran on Valuation: Security Analysis for Investment and Corporate Finance
Aswath Damodaran · 1994
Open LibraryGoodreads
Corporate Finance: Theory and PracticeCorporate Finance: Theory and Practice
T4 Corporate Finance: Theory and Practice
Aswath Damodaran · 1997
Open LibraryGoodreads
Applied Corporate Finance: A User's ManualApplied Corporate Finance: A User's Manual
T4 Applied Corporate Finance: A User's Manual
Aswath Damodaran · 1998
Open LibraryGoodreads
Finance Just in Time: Understanding the Key Finance Just in Time: Understanding the Key to Business and Investment Before It's Too Late
T4 Finance Just in Time: Understanding the Key to Business and Investment Before It's Too Late
Hugo Dixon · 2001
Open LibraryGoodreads

Recommended by: Mohnish Pabrai

The Dark Side of ValuationThe Dark Side of Valuation
T4 The Dark Side of Valuation
Aswath Damodaran · 2001
Open LibraryGoodreads

Recommended by: Rational Capital Investment Fund

Strategic Risk Taking: A Framework for Risk Strategic Risk Taking: A Framework for Risk Management
T4 Strategic Risk Taking: A Framework for Risk Management
Aswath Damodaran · 2007
Open LibraryGoodreads

Risk as a source of value: how firms measure it and take the risks they suit.

Narrative and Numbers: The Value of Stories Narrative and Numbers: The Value of Stories in Business
T4 Narrative and Numbers: The Value of Stories in Business
Aswath Damodaran · 2017
Open LibraryGoodreads
Healthcare Finance: Modern Financial AnalysiHealthcare Finance: Modern Financial Analysis for Accelerating Biomedical Innovation
T4 Healthcare Finance: Modern Financial Analysis for Accelerating Biomedical Innovation
Shomesh E. Chaudhuri · 2024
Open LibraryGoodreads

Princeton University Press. Listed on Lo's MIT books page.

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