Value investing, an investment approach and discipline popularized by Ben Graham dating back to the depression years, has a host of acolytes including the likes of Warren Buffet and Charlie Munger (partners in Berkshire Hathaway) and the author of this little book, Tren Griffin. To say that value investing is mainstream is an understatement but my knowledge of the finer points has been limited and so when I saw this book citing the views of one of the most distinguished practitioners of value investing I purchased a copy.
After reading the first couple of chapters two thoughts came to mind. First, the author seems almost sycophantic is his admiration for Mr. Munger, citing him tiresomely to drive home points about his (Mr. Munger's) value investing philosophy and approach. After reading roughly half the book it was clear to me (it didn't actually take that long to be fair to myself) that the information presented to that point could have been said in a quarter or less of that space. Second, at the same time I was annoyed with myself for not simply securing a copy to start with of Ben Graham's, The Intelligent Investor. The Definitive Book on Value Investing and get it directly from the progenitor of value investing himself. (I subsequently have.)
This is not to say I didn't learn anything from Mr. Griffin's book. It's hard not to given the extent of needless repetition. The book's long on philosophy and psychology (providing a bevy of observations and suggestions to help an investor overcome the biggest impediment to successful investing: himself) and short on analytical tools of finance. That's okay except that the author repeatedly cites the importance of understanding the intrinsic value of a business (the present value of future cash flows) yet how exactly it is derived remains nebulous throughout. My take away here is that intrinsic value may be hard to define but you know it when you see it. Well, okay. Beyond these limitations I found the book wanting in illustrative examples of Mr. Munger's actual investments to reinforce the many useful philosophical elements presented. And finally, the large and tedious number of quotations from Mr. Munger had for me the unintended consequence of characterizing him as a bit of a curmudgeon, probably unfair and undeserved but read the book and see what you think?
All in all, this book reminds me why I seldom read business books. The authors are often inexperienced writers who are either in love with themselves or their subjects, doing an injustice to all concerned. There is certainly a place for "complete investor" presentations but for me they are the stuff of articles in magazines, not monographs, Benjamin Graham's The Intelligent Investor being a deserving exception.
R. Rensing
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