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It's Earnings That Count( Finding Stocks with Earnings Power for Long-Term Profits)[ITS EARNINGS THAT COUNT][Paperback]
It's Earnings That Count( Finding Stocks with Earnings Power for Long-Term Profits) <> Paperback <> HewittHeiserman <> McGraw-Hill
Paperback
First published June 2, 2003
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Displaying 1 - 6 of 6 reviews
June 2, 2014
a couple of valid points, but not earth-shattering. a co needs to self fund, and certain spending such as brand advertising or growth initiatives should not punish the co's near-term earnings or cash flow.
February 3, 2018
The good: the ideas make sense intuitively. It looks like one might be able to identify growth stocks using the earnings power chart as described in this book.
The bad: the book has not been carefully edited. There are many typos, and an important number that's claimed to be taken from a financial statement in the book, doesn't appear in the financial statement. I was left wondering if I was supposed to add/subtract couple of things in the financial statement to arrive at this number...
The ugly: I think the author doesn't take sufficient effort to make sure his audience (likely to not be finance experts) truly and exactly understand what they need to do to arrive at the earnings power chart (the whole point of the book).
The bad: the book has not been carefully edited. There are many typos, and an important number that's claimed to be taken from a financial statement in the book, doesn't appear in the financial statement. I was left wondering if I was supposed to add/subtract couple of things in the financial statement to arrive at this number...
The ugly: I think the author doesn't take sufficient effort to make sure his audience (likely to not be finance experts) truly and exactly understand what they need to do to arrive at the earnings power chart (the whole point of the book).
February 13, 2019
Few great points which make you take a pause, think for a bit. This is a great book. I did indeed learn a new way of thinking about businesses.
All these books ultimately help you understand Graham and Buffett better.
All these books ultimately help you understand Graham and Buffett better.
December 10, 2019
Decent one time reading. Key message here is to look at free cash flow conversion and EVA analysis along with the reported income statement. And use these over a time line to get some cues about the firms sources of funding for growth and ability to earn above its cost of capital.
March 10, 2019
Anybody who wants to invest in growth stocks should read this book
September 21, 2014
Its Earnings that Count: Finding Stocks with Earnings Power for Long-term Profits by Hewitt Heiserman, Jr.
How many investors have been caught in the growth stock trap and have paid the price for their faulty investment strategy? How much money have these types of investors squandered away because of their greed? Heiserman takes the same investing strategy approach that all successful stock investor have taken: the value investment strategy espoused by Benjamin Graham.
Like Graham’s book The Intelligent Investor, Heiserman sets the intelligent investor as one who establishes both defensive and enterprising income statements in conjunction with the businesses accrual income statement to create the Earnings Power Chart. If the company in question shows promise on the Earnings Power Chart, Heiserman thinks that the investor should be safe in making that investment for long-term growth and profitability. I think his evaluation has a lot of merit.
Although the idea of buy-and-hold stock investing is nothing new, the investor has to hold the right stocks. Heiserman provides a great example of a stock purchased by his grandfather, passed along to his wife when he died and to him when his grandmother died years later. The stocks had not improved in the slightest over nearly 50 years!
I found this book an easier read that the Graham book. This book contains many charts and graphs to help the reader understand the complexities of this stock selection process. Nevertheless, Heiserman suggests that completing the Earning Power Chart is a necessary process that all investors should engage in prior to making any investment decisions. Do you think Buffett makes any type of investment in a company without his due diligence coming into play? Of course not, so why should us lowly investors behave any differently? There is an obvious reason why Buffett is worth billions of dollars! I think I will follow Buffett’s lead here and invest as he does.
Investing money is a risky business at the best of time so please take all the steps necessary to protect yourself and your investment. Gain any education or knowledge about investing in general that you need or desire, invest some time in understanding balance statements and accounting methods, understand the role of buy-and-hold investing strategies, and ensure that the company you are interested in has more than just good growth rate numbers. Invest wisely.
Happy Reading,
How many investors have been caught in the growth stock trap and have paid the price for their faulty investment strategy? How much money have these types of investors squandered away because of their greed? Heiserman takes the same investing strategy approach that all successful stock investor have taken: the value investment strategy espoused by Benjamin Graham.
Like Graham’s book The Intelligent Investor, Heiserman sets the intelligent investor as one who establishes both defensive and enterprising income statements in conjunction with the businesses accrual income statement to create the Earnings Power Chart. If the company in question shows promise on the Earnings Power Chart, Heiserman thinks that the investor should be safe in making that investment for long-term growth and profitability. I think his evaluation has a lot of merit.
Although the idea of buy-and-hold stock investing is nothing new, the investor has to hold the right stocks. Heiserman provides a great example of a stock purchased by his grandfather, passed along to his wife when he died and to him when his grandmother died years later. The stocks had not improved in the slightest over nearly 50 years!
I found this book an easier read that the Graham book. This book contains many charts and graphs to help the reader understand the complexities of this stock selection process. Nevertheless, Heiserman suggests that completing the Earning Power Chart is a necessary process that all investors should engage in prior to making any investment decisions. Do you think Buffett makes any type of investment in a company without his due diligence coming into play? Of course not, so why should us lowly investors behave any differently? There is an obvious reason why Buffett is worth billions of dollars! I think I will follow Buffett’s lead here and invest as he does.
Investing money is a risky business at the best of time so please take all the steps necessary to protect yourself and your investment. Gain any education or knowledge about investing in general that you need or desire, invest some time in understanding balance statements and accounting methods, understand the role of buy-and-hold investing strategies, and ensure that the company you are interested in has more than just good growth rate numbers. Invest wisely.
Happy Reading,
Displaying 1 - 6 of 6 reviews