The Little Book That Builds Wealth E-Book

Pat Dorsey

• Herausgeber: John Wiley & Sons
• Kategorie: Fachliteratur
• Serie: Little Books. Big Profits
• Sprache: Englisch

Seitenzahl: 206

Veröffentlichungsjahr: 2010

Beschreibung

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.

Leseprobe

Table of Contents

Little Book Big Profits Series

Title Page

Copyright Page

Foreword

Acknowledgments

Introduction

Chapter One - Economic Moats

Moats Matter for Lots of Reasons

Chapter Two - Mistaken Moats

Moat . . . or Trap?

These Moats Are the Real Deal

Chapter Three - Intangible Assets

Popular Brands Are Profitable Brands, Right?

Patent Lawyers Drive Nice Cars

A Little Help from the Man

One Moat Down, Three to Go

Chapter Four - Switching Costs

Joined at the Hip

Switching Costs Are Everywhere

Chapter Five - The Network Effect

Networks in Action

Chapter Six - Cost Advantages

A Better Mousetrap

Location, Location, Location

It’s Mine, All Mine

It’s Cheap, But Does It Last?

Chapter Seven - The Size Advantage

The Value of the Van

Bigger Can Be Better

Big Fishes in Small Ponds Make Big Money

Chapter Eight - Eroding Moats

Getting Zapped

Industrial Earthquakes

The Bad Kind of Growth

No, I Won’t Pay

I’ve Lost My Moat, and I Can’t Get Up

Chapter Nine - Finding Moats

Looking for Moats in All the Right Places

Measuring a Company’s Profitability

Go Where the Money Is

Chapter Ten - The Big Boss

The Celebrity CEO Complex

Chapter Eleven - Where the Rubber Meets the Road

Hunting for Moats

Chapter Twelve - What’s a Moat Worth?

What Is a Company Worth, Anyway?

Invest, Don’t Speculate

Chapter Thirteen - Tools for Valuation

Hitting the Books

The Multiple That Is Everywhere

Less Popular, but More Useful

Say Yes to Yield

Chapter Fourteen - When to Sell

Sell for the Right Reasons

Conclusion

Little Book Big Profits Series

In the Little Book Big Profits series, the brightest icons in the financial world write on topics that range from tried-and-true investment strategies to tomorrow’s new trends. Each book offers a unique perspective on investing, allowing the reader to pick and choose from the very best in investment advice today.

Books in the Little Book Big Profits series include:

The Little Book That Beats the Market, where Joel Greenblatt, founder and managing partner at Gotham Capital, reveals a “magic formula” that is easy to use and makes buying good companies at bargain prices automatic, enabling you to successfully beat the market and professional managers by a wide margin.

The Little Book of Value Investing, where Christopher Browne, managing director of Tweedy, Browne Company, LLC, the oldest value investing firm on Wall Street, simply and succinctly explains how value investing, one of the most effective investment strategies ever created, works, and shows you how it can be applied globally.

The Little Book of Common Sense Investing, where Vanguard Group founder John C. Bogle shares his own time-tested philosophies, lessons, and personal anecdotes to explain why outperforming the market is an investor illusion, and how the simplest of investment strategies—indexing—can deliver the greatest return to the greatest number of investors.

The Little Book That Makes You Rich, where Louis Navellier, financial analyst and editor of investment newsletters since 1980, offers readers a fundamental understanding of how to get rich using the best in growth investing strategies. Filled with in-depth insights and practical advice, The Little Book That Makes You Rich outlines an effective approach to building true wealth in today’s markets.

The Little Book That Builds Wealth, where Pat Dorsey, director of stock research for leading independent investment research provider Morningstar, Inc., guides the reader in understanding “economic moats,” learning how to measure them against one another, and selecting the best companies for the very best returns.

Copyright © 2008 by Morningstar, Inc. All rights reserved.

Published by John Wiley & Sons, Inc., Hoboken, New Jersey. Published simultaneously in Canada.

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Library of Congress Cataloging-in-Publication Data:

Dorsey, Pat.

The little book that builds wealth : Morningstar’s knockout formula for finding great investments / Patrick Dorsey.

p. cm.—(Little book big profits series)

Includes index.

ISBN 978-0-470-22651-3 (cloth)

1. Investments. 2. Stocks. 3. Investment analysis. I. Morningstar, Inc. II. Title.

HG4521.D6463 2008

332.6—dc22

2007045591

Foreword

WHEN I STARTED Morningstar in 1984, my goal was to help individuals invest in mutual funds. Back then, a few financial publications carried performance data, and that was about it. By providing institutional-quality information at affordable prices, I thought we could meet a growing need.

But I also had another goal. I wanted to build a business with an “economic moat.” Warren Buffett coined this term, which refers to the sustainable advantages that protect a company against competitors—the way a moat protects a castle. I discovered Buffett in the early 1980s and studied Berkshire Hathaway’s annual reports. There Buffett explains the moat concept, and I thought I could use this insight to help build a business. Economic moats made so much sense to me that the concept is the foundation for our company and for our stock analysis.