As the title implies, Ponzio is taking a stance against the manipulative ways of Wall St. firms that sell bad investment services to unknowing retail investors(you). There is a misalignment in incentives when these advisors case more about the volume of trades as they make commissions on that, as opposed to the product, what you're buying, which is where your value is stored. Ponzio writes in a very clear and engaging style; it was an easier read for me than reading the Intelligent Investor. Ponzi guides the reader through how value investing works and how to evaluate a business and purchase securities. He clears up the misconceptions behind investing and lays out some principles. The core message is that the key to making long-term gains in the stock market is tied to finding companies with a larger potential for growth that is cheaply priced. I learned a lot from the sections on analyzing the characteristics of a company's cash flow and why it's important to use this as a key indicator for investing. A wealth of knowledge, with good examples and easy to understand for someone new to investing.
After learning about value investing I wanted to get more perspectives on it and was looking for some non-academy and more casual-toned resources to learn more about it. I saw this book come up in a number of suggestions and liked that it emphasized owner earnings and other business fundamentals.
“The success of a business hinges entirely on its ability to generate cash. If a business cannot generate enough cash to grow, or at least sustain its operations, it has to save its behind by borrowing money, selling more stock, or shedding assets—none of which are good for investors.” - Joel Ponzio
"The truth is that your age and the size of your portfolio have absolutely no bearing on whether you should be investing in stocks, bonds, mutual funds, CDs, or any other investment opportunity. The decision to invest in stocks — or mutual funds that invest in stocks — should be based on your understanding of stocks, the stock market, and risk. - Joel Ponzio
"It is impossible to track the value of your business by watching the stock price. Price is a tool that is to be used to take advantage of opportunities in the stock market, not a guide as to how well your business is performing. Over the course of many decades, price can be used as an indicator of how a business has grown or fallen. Over the course of a few days, weeks, months, or quarters, price changes reflect little more than the will of speculators and the emotion of the markets." - Joel Ponzio
Notes for this book are still being transcribed.
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