The Little Book That Builds Wealth: The Knockout Formula for Finding Great Investments

The Little Book That Builds Wealth: The Knockout Formula for Finding Great Investments

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Overview

The Little Book That Builds Wealth: The Knockout Formula for Finding Great Investments by Pat Dorsey

In The Little Book That Builds Wealth, author Pat Dorsey—the Director of Equity Research for leading independent investment research provider Morningstar, Inc.—reveals why competitive advantages, or economic moats, are such strong indicators of great long-term investments and examines four of their most common sources: intangible assets, cost advantages, customer-switching costs, and network economics. Along the way, he skillfully outlines this proven approach and reveals how you can effectively apply it to your own investment endeavors.

Product Details

ISBN-13: 9780470226513
Publisher: Wiley
Publication date: 03/03/2008
Series: Little Books. Big Profits Series , #12
Pages: 224
Sales rank: 807,782
Product dimensions: 5.30(w) x 7.29(h) x 0.80(d)

About the Author

Pat Dorsey, CFA, is Director of Equity Research at Morningstar, Inc. He played an integral part in the development of the Morningstar Rating for stocks, as well as Morningstar's economic moat ratings. Dorsey is also the author of The Five Rules for Successful Stock Investing: Morningstar's Guide to Building Wealth and Winning in the Market (Wiley). He holds a master's degree in political science from Northwestern University and a bachelor's degree in government from Wesleyan University. Please visit www.findingmoats.com.

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Table of Contents

Foreword xi

Acknowledgments xvii

Introduction The Game Plan 1

Chapter One Economic Moats 7

Chapter Two Mistaken Moats 15

Chapter Three Intangible Assets 29

Chapter Four Switching Costs 43

Chapter Five The Network Effect 57

Chapter Six Cost Advantages 75

Chapter Seven The Size Advantage 91

Chapter Eight Eroding Moats 103

Chapter Nine Finding Moats 115

Chapter Ten The Big Boss 133

Chapter Eleven Where the Rubber Meets the Road 143

Chapter Twelve What’s a Moat Worth? 159

Chapter Thirteen Tools for Valuation 171

Chapter Fourteen When to Sell 187

Conclusion More than Numbers 197

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Little Book That Builds Wealth: The Knockout Formula for Finding Great Investments 4 out of 5 based on 0 ratings. 2 reviews.
RolfDobelli More than 1 year ago
How do you pick stocks? Do you pay attention to earnings? Chart patterns? Growth potential? Your Uncle Morty? Instead of all that, use the same basic system that investment guru Warren Buffett perfected: Look for solid profitable companies that own a piece of the market, buy their stock and hold it a long time. Morningstar, the investment research company, uses the same approach to analyze and rate stock values. Its director of equity research, Pat Dorsey, explains its stock analysis system in this small volume. The stock selection system calls for seeking companies with protected unique advantages, called "economic moats." What sounds straightforward in theory may not be as easy in practice: Finding a structurally protected stock today is not necessarily a simple stroll across the drawbridge. Still, getAbstract finds Dorsey's presentation succinct and readable, and recommends it to investors who are not yet familiar with value investing and similar approaches.
EGHunter01 More than 1 year ago
This book provides U with sound financial information; it is not 4 the purpose of getting rich quick. It is 2 provide U with financial literacy and assist U 2 build Ur finances over time. It gives U a prospective on dealing with Ur finances at the present time, and setting future $$ goals. Assists U 2 use Ur $$ 2 build or bring in more $$ by using $$ 2 make $$, Ur $$ works 4 U, instead of U working 4 $$; U learn about stock and real investments. It is great for learning the vocabulary of investing.