Mouboussin gives us an insight into his extremely well-equipped toolbox. He covers both classic investment topics with references to Buffett and Graham and takes the reader on a wide range of topics such as casino gambling, psychology, horse racing and evolutionary biology.
The term “Motley Fool” is taken by D&T Gardner from Shakespear’s comedy “As you like it”. Like Sharespeare’s court jester, the Gardner brothers want to be able to tell kings and queens (or all of us) the truth that no one else dares to say for fear of losing their heads (or their jobs on Wall Street). Their philosophy is one part humor and one part truth. Not a bad starting point at all.
Legendary fund manager Sir John Templeton has been called “the greatest stock picker of the century” by Money magazine and is widely recognized as one of the pioneers of global investing. Templeton has beaten all the major indices over an impressive period of over 50 years. The book offers a fine balance between the strategies and methods that set Templeton apart from other investors, practical recommendations for identifying and analyzing investments, and a number of concrete examples from his own career.
The primary target audience for the book is entrepreneurs who are considering starting a business. But the book is equally interesting for investors who want to understand the characteristics that need to be present to create a successful and sustainable growth company.
The book draws on Thiel’s extensive experience in the US tech sector, where he is one of the most successful entrepreneurs and investors. Thiel covers many different topics in the book, but of particular interest to investors is his model for building and investing in new technology companies.
Philip Fisher is one of the grand old men of the investment world and his fan base includes many prominent investors of all time, including Warren Buffett. Buffett has repeatedly referred to Fisher’s principles for investing at Berkshire’s annual meetings.
At the heart of the castle is Fisher’s model for selecting and assessing whether a specific company is a sublime investment.
The book discusses the misconceptions that managers fall prey to when answering the question of what drives business performance.
These misconceptions are described in a number of best-selling international management books, such as In Search of Excellence, Built to Last and From Good to Great. Here, the reader is led to fall into fallacies because the arguments appear to be rational, evidence-based (extensive studies) and conducted by reputable organizations.
The great disconnect
The book starts with a classic quote from American baseball legend Yogi Berra:
“In theory there is no difference between theory and practice. In practise there is.”
Anyone who has invested in the stock market will know that this is a very true statement. A strategy that seems completely obvious on paper can turn out to be the opposite in practice. The reason for the difference between theory and practice is multifaceted and unfolds in a number of Marshall’s experiences. You’ll find my favorites below.
The first investment book I read was Benjamin Graham’s The Intelligent Investor. But this is not where my journey began. In connection with the IPO of the company I used
