Investing Resources

Investment Books

Suggested reading in priority (read these 2 before going onto others)

1. The Little Book of Value Investing by Christopher Browne

2. The Intelligent Investor by Benjamin Graham

These are a few of the other books I finished, enjoyed and recommend:

Investing the Templeton Way by Templeton

– (nice read) One Up on Wall Street by Peter Lynch

– (balanced Scripture on finance) Money, Possessions & Eternity – Randy Alcorn

– (fascinating biography) The Snowball: Warren Buffet and the Business of Life by Alice Schroeder

– (neat to compare the two) Winning Investment Habbits of Warren Buffett and George Soros

– (the intense “grand-daddy” of technical behind the value investing #’s) Security Analyst – by Ben Graham & David Dodd

The Essays of Warren Buffet: Lessons for Investors and Managers

– (consumers markets) Africa Rising by Vijay Mahajan

God as my CEO by Larry Julian

– (excellent on the finance crash 2008) The Big Short by Michael Lewis

– (short & cool) High Finance by Otto Kahn

– (good read) Confidence Game by Christine Richard

Everything the Bible Says about Money – Lin Johnson

– (practical – Starbucks history) Pour Your Heart into It – Howard Schultz

– Whitman, Martin J. (1999). Value Investing: A Balanced Approach. New York: John Wiley & Sons. ISBN 0-471-16292-2.

King of Oil: The Secret Lives of Marc Rich by Daniel Ammann (questionable ethics, but shrewd & interesting businessman)

– (studied this at length about Africa oil & gas companies) Crude Continent by Duncan Clarke

NYU Value Investing Course

This is an intense, but amazing, course NYU Prof Damodaran provides a complimentary valuation course:, which I have twice taken online.

Invest Process

“Greenblatt” search based on PE and ROE, rank the shares:

• Check the balance sheet

• A quick ratio of 1 (these need to be assessed as we use the current ratio greater than 2 in the next level.)

• A current ratio of 1

• Does the company have a history of dividends over 5 years?

• Graham screen:

• EY > 2X 5yr AAA corporate bond or PE < 1/(2 X 5yr AAA corporate bond)

• DY = 5yr AAA corporate bond.

• Current ratio > 2

• Total debt < 2/3 tangible book value. (these are all margin of Safety)

• Tweedy Browne Screen:

• There are stock buybacks

• Not large caps.

Valuation By The Numbers Outline

1) Research

a) Latest annual and quarterly reports

b) Quarterly earnings release

c) Broker reports

i) Company and industry specific

d) News articles

e) Company Website

i) Investor relations

ii) Presentations

iii) Press releases

f) Competitor

2) Spread financials (I/S, B/S, C/F)

a) Check for one-time adjustments

i) Cash and non-cash items

ii) Management’s discussion and analysis

iii) Company quarterly earnings release

3) Valuation

a) Comparable companies


i) Beta (unlevered)

ii) Cost of Equity

iii) Cost of debt

c) Base assumptions

i) Revenue


iii) Earnings

iv) Tax Rate

v) Working Capital

vi) Capital Expenditures

vii) Depreciation

viii) Debt (cost of)

ix) Net Operating Losses

x) Share count

4) Investment Memo

a) Company

b) Recommendation

c) General

d) Strategic

e) Financial

f) Operational

g) Valuation


i) Risk & Mitigating factors

The goal is to communicate why (or why not) to invest in the company. This should be viewed from the perspective of how the company creates value and why it will be worth more tomorrow. Do you like the industry, how will the company grow and improve operations and cash flows. How does the company finance itself. What catalysts exist accelerate or unlock value.

The following is an outline of ways to consider gross income.

All is subjective to the respective household. Yet, the basic principles remain in place. 

Cash Allocation Examples

   — Be disciplined. 

   — Stay within needs. 

   — Save cash for wants. 

   — As possible: Zero debts!

I. Give unto GOD

   A. First fruits 2.5%,

   B. Tithing 10%  

   C. Offerings 10%

II. Taxes 

   A. 10-15% long-term capital gains tax depending on domicile,

   B. Trade deals up to 40% tax

III. Basic needs

   A. Food such as groceries

   B. Shelter (up to an example 25% of monthly budget)

     1. Housing

     2. Insurance

     3. Utilities

     4. Maintenance

   C. Clothing

   D. Education

   E. Health

     1. Insurance

     2. Co-payments

     3. Medicines

   F. Automobile

     1. Fuel

     2. Insurance

     3. Maintenance

   G. Other

     1. Childcare needs

     3. Miscellaneous

IV. Longer-Term Financial Planning

   A. Simple savings with 3-6 month living expenses

   B. Example stock market investments

     1. Johannesburg Stock Exchange

     2. United States stock exchanges

     3. Other global stock exchanges

   C. Investments

     1. Pension fund contribution

     2. Private equity opportunities

       a. Full or partial business ownership

       b. Loaning cash to a business

   D. Real properties can be expensive ongoing investments with long-term smaller gains than stocks

V.  Bank and Brokerage Accounts

   A. Bank accounts

     1. Checking for everyday use

     2. Savings

       a. Short-term (example: 3-6 months living expenses)

       b. Medium-term (example automobile)

       c. Long-term (example real property)

   B. Brokerage accounts

     1. Basic brokerage account for stock exchange

     2. Pension brokerage account for stock exchange.

   3. Asset allocation example: 

      a. 25% cash equivalent lower interest money market to benchmark and for liquidity

      b. 25% market index funds to benchmark long growth

   c. 25% blue chip dividend growth stocks

   d. 25% mix of distressed, turnaround, small, and medium undervalued stocks.

Blessings in The Most High