Book Review – Outsmarting the Crowd by Bogumil K. Baranowski

My Amazon Rating: 5 out of 5 Stars

If you have been looking for a good primer on Value Investing – this book answers the mail.

The book is broken down by the authors “Three Pillars” of Value Investing:

• PHILOSOPHY – how to think differently; be patient; and embrace failure
• PATH – how to learn; simplify and focus; and earn, save, and invest
• PRINCIPLES – stocks are businesses; moody Mr. Market; and Margin of Safety

The thing I liked most about this book – is that it has made me rethink my holding periods for individual stocks.  I really appreciate any book that forces a review of my core investing processes – backed up by logic and good examples.

I don’t agree with the author’s view that Options should be avoided – especially when you want to buy Stocks via cash secured puts – but I take his point, most novices should keep it simple.

Highly recommended.