Buy This Book-You Need to Learn About Risk and Valuation
If you wonder why HPQ is now trading, despite the huge buyback announcement, which, when combined with its remainning $4.1 authorization, totals 16% of its outstanding shares, back to where it was on Friday, you need the book to your right: Security Valuation and Risk Analysis:
If you reccognize risk is as important to quantify as future cash flows, you need this book.
Twenty years ago when I wrote “Cash Flow and Security Analysis” I knew it would be a landmark book, which it became—this book is of greater significance as it brings forward my principles and worksheets related to risk.
My latest book is based on 4 decades of experience in all phases of the investment business—from credit analysis to M&A, to investment management. It was written with the practitioner in mind—not the academic.
It is the only investment text ever written which accurately addresses and provides very detailed models and examples of my adjusted free cash flow and cost of capital.
By judiciously applying the principles in the text, you will see why I became positive on stocks in March 2009 and bearish a year later—but it is not a book on market timing! It is one based on fundamentally sound principles of free cash flow, cash-based return on invested capital, and cost of capital. These are the 3 building clocks of security analysis and valuation.
Given the popularity of this site I hope you will decide to continue your investment education. So, get ahead of the universities and colleges that will be adopting the book. You could be first.
Disclosure: No positions
Kenneth S. Hackel, CFA
President
CT Capital LLC
