Description
Book SynopsisRalph Birchmeier argues that an optimal portfolio-building strategy means patiently waiting for the few investments worthy of capital allocation. He outlines the principles required for success then examines specific reasons to pass on investments, detailing behavioral biases that disrupt optimal decision making.
Trade ReviewRalph Birchmeier covers extensive territory, expanding on Graham’s fundamental principles as well as Warren Buffett and Charlie Munger's ideals to offer new perspectives on investing wisely. Readers will greatly benefit from his insights on accounting and valuation. -- Jean-Marie Eveillard, trustee emeritus, First Eagle Funds
While most investment books tell you what to look for in an investment, more importantly,
Reasons to Pass tells you what to avoid. Ralph Birchmeier has distilled his decades of hands-on experience into a book that offers a comprehensive and entertaining introduction to core investing principles for the aspiring investor. -- Paul D. Sonkin, coauthor of
The Enduring Value of Roger Murray and
Pitch the Perfect InvestmentRalph Birchmeier presents a unique and comprehensive survey of investment opportunities in global equity capital markets, elegantly demonstrating why good investments are hard to find. -- Joel Lusman, Lusman Capital Management
Table of ContentsPart I. Principles and MoreIntroduction
1. Reasons to Pass: Investment Principles
2. Main Street Versus Wall Street: A Rigged Market?
3. Fundamental Analysis in the Digital Age
4. Indexing: A Viable Option
Part II. Reasons to PassIntroduction
5. Minimum Market Capitalization
6. Financial Leverage: The Ultimate Killer
7. High–Fixed Cost Businesses
8. Accounting
9. Regulatory Uncertainty
10. Corporate Governance
11. Asset Liability Mismatch
12. Deep Cyclical Companies Near Cycle Peak
13. High-Cost Commodity Businesses
14. Cash Flow and Earnings Disconnect
15. Structurally Declining Businesses
16. Obsolescence Risk
17. Valuation: A Critical Protector of Capital and Returns
18. Lollapalooza Effect
Part III. Reasons to BuyIntroduction
19. Screening
20. Growth Stocks
21. Core Characteristics of Successful Investors
22. Viable, and Buyable, Investment Opportunities
23. Selling Discipline
Conclusion
Index
