#49 The $50bn Man

Quest for Value is a finance book that introduces Economic Value Added (EVA) as a financial performance metric. It explores how companies can create value by earning returns on capital that exceed the cost of capital. The book emphasizes that EVA is an informative tool that assists the user in understanding from a financial standpoint what is really making the business tick and where the money is going into the business. The central thesis focuses on how the value of a company is directly related to its ability to generate economic profit. It highlights the importance of aligning management incentives with value creation to drive sustainable growth and profitability.

In 'Common Stocks and Uncommon Profits', Philip A. Fisher outlines his investment philosophy, which focuses on identifying and investing in high-quality growth companies. The book is renowned for Fisher's '15 points to look for in a common stock', which include evaluating a company's products, management, sales organization, research capabilities, and long-term growth prospects. Fisher advocates for a qualitative approach to investing, emphasizing the importance of understanding the business and its management rather than relying solely on quantitative metrics. The book also discusses when to buy and sell stocks, the role of dividends, and the pitfalls of short-term thinking in investing.

Written by Benjamin Graham, 'The Intelligent Investor' is a seminal work on value investing that has inspired millions since its original publication in 1949. The book emphasizes the importance of distinguishing between investing and speculation, calculating the intrinsic value of companies, and maintaining a margin of safety. The revised edition includes updated commentary by Jason Zweig, who provides modern examples and insights to help readers apply Graham's principles in today's market. Warren Buffett, a disciple of Graham, has praised the book as 'the best book about investing ever written'.

The New Money Masters by John Train is a sequel to his earlier work, The Money Masters. It profiles eight prominent securities traders and mutual fund managers from the 1980s, offering insights into their investment techniques and philosophies. The book includes profiles of notable figures such as George Soros, Peter Lynch, and Jim Rogers, providing a glimpse into their approaches to investing during a volatile period in financial history.