Comments on: Wisdom on Value Investing by Gabriel Wisdom

By: Jim

Jim — Wed, 20 Jan 2010 02:31:21 +0000

That’s just a starting point, the book goes into greater detail on the methodology that I didn’t cover.

By: moneytutor

moneytutor — Wed, 20 Jan 2010 01:12:25 +0000

For business quality, the screen looks at:

■Revenue growth: Compound annual growth rate of 10% or more for the last five years.
■Earnings growth: 10% compound annual growth rate, erratic earnings and revenues companies should be discarded.
■Return on equity: At least 15% ROE for the last five years.
■EBITDA margin: EBITDA stands for earnings before interest, taxes, depreciation or amortization and for this you want an EBITDA that exceeds that company’s industry peers.
■Debt-to-equity ratio: 40% or less.

I hope this is all that is needed. I plan to prepare a few screens and see what I come up with.

By: Fred @ One Project Closer

Fred @ One Project Closer — Tue, 19 Jan 2010 03:40:34 +0000

Jim-this is a really helpful review. I’m going to look into the book.

By: zapeta

zapeta — Mon, 18 Jan 2010 15:32:31 +0000

Yeah, I was wondering the same thing. I want to change my last name to “Wisdom”.

By: Jim

Jim — Mon, 18 Jan 2010 14:47:07 +0000

By: govenar

govenar — Mon, 18 Jan 2010 14:45:40 +0000

Is that his real name, or did he change it to that so he can make cool book titles?

By: Jim

Jim — Mon, 18 Jan 2010 14:07:20 +0000

Hahah, I think the reviews are good but sometimes it’s a bit much. The level of detail makes you not even need to read the book!

By: lostAnnfound

lostAnnfound — Mon, 18 Jan 2010 13:16:15 +0000

Thanks for the review, Jim. I have won four books that you reviewed & then put on your auction site and each has been very educational.

By: Mark B.

Mark B. — Sun, 17 Jan 2010 19:37:57 +0000

I hope you do more book reviews in the future. Then it would feel like I’m on the simple dollars where it’s all books all the time.

thanks