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Financial Times Guide to Making the Right Investment Decisions: How to Analyse Companies and Value Shares (The FT Guides) [Paperback]

Michael Cahill
4.9 out of 5 stars  See all reviews (9 customer reviews)
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Book Description

11 Mar 2010 0273729845 978-0273729846 2

 Do you want to feel more confident about your investment decisions?

 

Do you need to have a better understanding of how the stock markets value a business?

 

Do you want to know what the key ratios are that drive share price performance?

 

 

The Financial Times Guide to Making the Right Investment Decisions is the insider’s guide to how the market examines companies and values shares.  It helps you understand the factors that drive long term wealth creation as well as highlighting the key risks that lead to value being destroyed.

 

Originally published as Analysing Companies and Valuing Shares, this new edition has been fully revised and includes a new and easy to follow framework for understanding valuation.  Perfect for investors at all levels, it guides you through the investment maze, and highlights the key issues you need to consider to invest successfully.

 

 

The Financial Times Guide to Making the Right Investment Decisions:

 

·   Gives you an easy to follow framework to  guide your decision-making

·   Explains clearly and concisely key financial concepts and how they drive valuation

·   Shows you the key ratios to monitor and how they affect share prices

·   Illustrates the key risks and warning signals that will help you avoid losses

·   Identifies the qualities of company management and governance that differentiates winners from losers

·   Brings the issues and numbers to life with real examples and case studies

  

In a challenging economic and stock market environment, the need to take better informed decisions is vital. This clear, common sense guide provides a comprehensive and accessible framework for understanding the valuation of a business and what drives its share price.  Knowing the key numbers, ratios and techniques that professional investors use will help you to reduce your risk and invest more profitably.

 

 

 

Frequently Bought Together

Financial Times Guide to Making the Right Investment Decisions: How to Analyse Companies and Value Shares (The FT Guides) + The Financial Times Guide to Investing: The Definitive Companion to Investment and the Financial Markets (The FT Guides) + Financial Times Guide to Selecting Shares That Perform: 10 Ways to Beat the Stock Market (The FT Guides)
Price For All Three: £43.55

Buy the selected items together


Product details

  • Paperback: 368 pages
  • Publisher: Financial Times/ Prentice Hall; 2 edition (11 Mar 2010)
  • Language: English
  • ISBN-10: 0273729845
  • ISBN-13: 978-0273729846
  • Product Dimensions: 15.7 x 2.3 x 23.2 cm
  • Average Customer Review: 4.9 out of 5 stars  See all reviews (9 customer reviews)
  • Amazon Bestsellers Rank: 32,980 in Books (See Top 100 in Books)
  • See Complete Table of Contents

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Review

'An excellent guide to the practical analysis of the value and risks of companies. Very well written and easy to comprehend whilst not avoiding real-life difficulties - the best book on company analysis and valuation I’ve read.'  Jon Moulton, Chairman, Better Capital

 

'Excellent.  A comprehensive and insightful view of the world of stock market investment.  Fully deserves to become the investors' vade mecum.'

David Webster, Chairman, InterContinental Hotels Group

 

'Impressive. Value consists of inherent qualities but also what the market makes of those qualities. Michael Cahill’s book successfully describes how professionals value companies, how the market works and the issues investors must consider to reach a decision.'

Sir John Egan, Chairman, Severn Trent

From the Back Cover

'An excellent guide to the practical analysis of the value and risks of companies. Very well written and easy to comprehend whilst not avoiding real-life difficulties - the best book on company analysis and valuation I’ve read.'  Jon Moulton, Chairman, Better Capital

 

'Excellent.  A comprehensive and insightful view of the world of stock market investment.  Fully deserves to become the investors' vade mecum.'

David Webster, Chairman, InterContinental Hotels Group

 

'Impressive. Value consists of inherent qualities but also what the market makes of those qualities. Michael Cahill’s book successfully describes how professionals value companies, how the market works and the issues investors must consider to reach a decision.'

Sir John Egan, Chairman, Severn Trent

 

Do you want to feel more confident about your investment decisions?

Do you need to have a better understanding of how the stock markets value a business?

The Financial Times Guide to Making the Right Investment Decisions is the insider’s guide to how the market examines companies and values shares.  It helps you understand the factors that drive long-term wealth creation as well as highlighting the key risks that lead to value being destroyed.

Originally published as Analysing Companies and Valuing Shares, this new edition has been fully revised and includes a new and easy-to-follow framework for understanding valuation.  Perfect for investors at all levels, it guides you through the investment maze, and highlights the key issues you need to consider to invest successfully.


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Front Cover | Copyright | Table of Contents | Excerpt | Index | Back Cover
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Customer Reviews

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Most Helpful Customer Reviews
11 of 11 people found the following review helpful
5.0 out of 5 stars For the seasoned investor and the novice alike 21 Feb 2011
Format:Paperback
As to be expected Michael covers the major concepts, ratios and models used by the investment industry in determining the absolute and relative valuation of company shares. The insights he brings from his experiences as a sell-side equity analyst, an executive coach and trainer distinguish his writing. These perspectives enable him to go beyond the accepted wisdom to explain the nuances and complexities of managements and businesses across a range of industries. He uses commons sense and an intuitive approach in his explanations. The seasoned investor and the novice alike will benefit from reading this book.

Michael demonstrates that a blind faith in numbers or ratios can disguise what is really happening to the health and long-term prospects of a business. Also accounting distortions can give a much rosier picture of the underlying situation and the company's ability to generate cash. He cautions against excessive reliance on sophisticated mathematical models, which don't capture the vagaries of human behaviour and the real world. Further he challenges the industry's tendency over the last decade to focus narrowly on growth without adequate consideration of how the growth is being funded and the attendant business and financial risks.

Michael devises the `Valuation Villa' framework to explore the key ingredients of growth, risk and quality in assessing a company's potential to create sustainable wealth. He emphasizes the need to pay attention to all three and not to be swayed by one measure alone. He digs deeper by considering the management and strategy of the business, its financial position, the returns it generates and its outlook. This approach provides a more comprehensive understanding of what drives value.
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9 of 9 people found the following review helpful
By JJ
Format:Paperback
This is a highly readable and enormously useful explanation of the basic tenets of investment analysis and valuation. Michael Cahill has the gift of making complex and sometimes daunting concepts simple and comprehensible without 'dumbing down'. His focus on 'growth, risk and quality' as the key determinants of value gives a coherent theme to the book and his style is clear and lively. I never thought I would actually enjoy reading a book on this subject but I did and what's more, I learnt a great deal too!
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6 of 6 people found the following review helpful
5.0 out of 5 stars An excellent book 16 Aug 2010
By AB
Format:Paperback
This is a highly useful book. Not only does it really clarify the fundamentals of investment, but as a small business owner, I found it invaluable. It is helping me really focus on the key drivers of value and strategic management of my business for the long term. It is very easy to read, makes a complex subject accessible, and helps you easily apply its principles.
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2 of 2 people found the following review helpful
4.0 out of 5 stars Informative and useful 10 May 2013
By Miz
Format:Paperback|Amazon Verified Purchase
Though quite long, this book is a must read guide. It almost because your go-to reference book on long term investing.
Cahill does a great job in explaining everything to those with no Finance background.
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2 of 2 people found the following review helpful
5.0 out of 5 stars making the right investment decisions 12 April 2011
By renfrew
Format:Paperback
An excellent book clearly explained and well written in a manner that is easy to understand, compared to other books on the subject which I have started to read and gave up on.Well worth the money and five stars.
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1 of 1 people found the following review helpful
5.0 out of 5 stars Beneficial 27 May 2013
Format:Paperback|Amazon Verified Purchase
This is an easy but very insightful read. I say easy but it takes a relative genius to make investment concepts simple. So, well done Michael. I hope the education people make this mandatory reading for investment courses. Fantastic!!!!
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1 of 1 people found the following review helpful
5.0 out of 5 stars An excellent read 11 Sep 2012
Format:Paperback
This is a very well written book. Michael has the ability to explain complex issues in a clear and concise manner, making the book worthwhile for new and experienced investment analysts alike. In my view, buying this book is a wise investment decision !
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1 of 1 people found the following review helpful
5.0 out of 5 stars Excellent 13 Mar 2012
By kevin
Format:Paperback
Interesting book, very well written and full of common sense, which is not so common anymore in financial services.
Lots of advice on how to assess companies, their position in their industries and how to form a view on the quality of the managment teams that run such companies. All told, excellent book and well worth reading
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