Tuesday, October 6, 2009

Latest Amazon.com Reader Review

4.0 out of 5 stars Cash is king, September 20, 2009
By graham - See all my reviews

Bruce Berkowitz sums it up best on the cover, follow the cash and you can value the business. I found the book excellent in leading you through the balance and income statements and most importantly deciphering just how much cash is being generated. The free cash flow talked about in the book seems to approximate Buffet's "owners earning" but it helps in dealing with the tricky aspect of adjusting those earnings to deal with the full business cycle. The book references excel sample sheets throughout and details the methodology behind them in a clear and concise manner, this is not to say it is easy, sometimes you really have to think, but the answers are there. Thoroughly enjoyed the book and have made several very successful investments using it as part of my toolset to value a business. Highly recommended