Today I wanted to share one of my favorite books on Investing so here is the Common Stocks and Common Sense Book Review
The author is by Edgar Wachenheim III and if you don’t know him yet then I highly suggest a google search because he’s one of the best value investors out there.
Who is this book for:
This book is for everybody interest in value investing. Meaning figuring out what a company is worth and then buying it for a lower price. Edgar Wachenheim III is a huge fan of Graham’s margin of safety principle and it gets explained numerous times through the book.
The book is great for beginner investors but I would also recommend experienced investors to have a look. The case studies in the book are fantastic.
Who is it not for :
The book doesn’t talk about Technical Investing or short term day trading so if you’re trading with more than one screen this book is probably a waste of time for you.
I recommend this book to everybody interested in value investing. With that I mean people that focus on fundamentals, intrinsic value and prefer to buy stocks with a margin of safety. If you don’t know how to define those yet then the book is even better because it explains how to
Whats in the book :
The book begins with a small summary of his investing philosophy and then the most interesting parts begin. The case studies!
I believe that by providing case studies this book is invaluable to investors. Edgar Wachenheim III explains in great detail how he came up with an investing idea and how he created his thesis. In the end something has to happen for a price to move.
Some of the investments he discusses are IBM, & Whirlpool and each company and investment idea gets discussed in great detail. I won’t write about all the companies in detail myself but I would suggest that you get the book asap if you haven’t read it yet. It’s one of the least known but best investment books out there.
We all read The intelligent Investor etc by Graham and other familiar names BUT not many value investing books I read have that many detailed case studies about how to pick stocks.
The book can be found on Amazon, Audible or Kobo