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Invest Like a Guru: How to Generate Higher Returns At Reduced Risk With Value Investing
Adopt the investment strategy that built Warren Buffett's fortune
Invest Like a Guru provides an invaluable resource for high-quality-focused value investing, with expert insight and practical tools for implementation. Written by the man behind GuruFocus.com, this book expands on the site's value strategies and research tools to provide a primer for those exploring pathways to higher returns at lower risk. The book begins with an insightful explanation of high-quality-focused value investing concepts, then quickly moves into practical, detailed guidance on analysis, valuation, key factors, and risks to avoid. Case studies demonstrate real-world application of various analysis methods, and the discussion walks you through important calculations using real examples. Author Charlie Tian draws upon his own experiences and lessons learned to provide true insight on high-quality-focused value investing as a strategy, providing both reference and expert advice in this singularly useful guide.
Warren Buffett once said, "I would rather buy good companies at fair prices than buy fair companies at good prices." That's how he built his fortune, and his method is what we now call high-quality-focused value investing. This book shows you how to determine what constitutes "good companies" and "fair prices," with practical tools for real-world application.
Learn the principles and concepts of high-quality-focused value investing Understand the analysis process and valuation of prospective investments Avoid the value traps that can trigger permanent losses Study clear examples of key ratios and calculations We can't all become the next Warren Buffett, but we can boost returns while reducing risk using the right investment strategy. High-quality-focused value investing provides a path to profit, and Invest Like a Guru is the one-of-a-kind guidebook for getting on track.
Invest Like a Guru provides an invaluable resource for high-quality-focused value investing, with expert insight and practical tools for implementation. Written by the man behind GuruFocus.com, this book expands on the site's value strategies and research tools to provide a primer for those exploring pathways to higher returns at lower risk. The book begins with an insightful explanation of high-quality-focused value investing concepts, then quickly moves into practical, detailed guidance on analysis, valuation, key factors, and risks to avoid. Case studies demonstrate real-world application of various analysis methods, and the discussion walks you through important calculations using real examples. Author Charlie Tian draws upon his own experiences and lessons learned to provide true insight on high-quality-focused value investing as a strategy, providing both reference and expert advice in this singularly useful guide.
Warren Buffett once said, "I would rather buy good companies at fair prices than buy fair companies at good prices." That's how he built his fortune, and his method is what we now call high-quality-focused value investing. This book shows you how to determine what constitutes "good companies" and "fair prices," with practical tools for real-world application.
Learn the principles and concepts of high-quality-focused value investing Understand the analysis process and valuation of prospective investments Avoid the value traps that can trigger permanent losses Study clear examples of key ratios and calculations We can't all become the next Warren Buffett, but we can boost returns while reducing risk using the right investment strategy. High-quality-focused value investing provides a path to profit, and Invest Like a Guru is the one-of-a-kind guidebook for getting on track.
210 pages, Kindle Edition
Published March 31, 2017
141 people are currently reading
552 people want to read
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Displaying 1 - 30 of 35 reviews
August 20, 2018
For the last decade of declining interest rates traditional low valuation multiple, deep value investing has not fared at all well. Thus, value investing has gradually migrated to a position of investing in quality growth, compounding franchise types of stocks. Charlie Tian, the founder of the popular value investing website GuruFocus.com, has written a useful beginner’s guide to this value investing 2.0 style. Quite fittingly Tom Russo has written one of the recommendations on the cover, as he is probably the closest to the ideal investor in the genre that Tian advocates.
Tian gives the largest credit to Peter Lynch, Warren Buffet, Donald Yacktman and Howard Marks in shaping his thinking. I would argue that the largest impact might instead have been the TMT-crash of 2000/02. The author who is a physicist by training and who used to work with fiber optic communication lost his shirt on investing in the companies he thought had a great future and where he knew the technology inside out. Like all good learners Tian turned this setback and defining moment to something positive and he immersed himself in the ways of successful value investors and soon started his website – which must be said, is now a great resource for value investors.
Invest Like a Guru contains numerous wise thoughts from the obviously very learned author. Still the level is quite basic and I sometime miss the nerve of the writing of Tian’s heroes such as Howard Marks. The structure is also fairly basic with a description of what the author has picked up from his role models, why an investor should chose the franchise value type of investing and how to execute it, including the selection of holdings and the portfolio construction. Tian advocates quite categorically for investing in a fairly thin slice of the equity market but he describes the process well. Perhaps somewhat too much attention is given to the historic performance of companies and too little to how to secure that they will perform equally well in the future. A chapter on barriers-to-entries and competitive advantages wouldn’t have been out of place.
At times there are a bit too many references to the author’s web site, which some readers can potentially find disturbing. This isn’t my main objection to the text however. It is the grudge the author seems to hold against deep value investing. Chapter 2 is dedicated to arguing against this “value investing 1.0” and correctly points to the many difficulties it entails. Then later on in the book Tian returns to discuss the main problem with deep value investing – the problem with value traps. Again it is a fair or even good description of the topic but it is to me quite unclear why it’s there. Why discuss the problem of an investment style that you are not writing a book about when you leave out the main difficulty when it comes to investing in high quality growth companies – the gravity of the reversal-to-the mean in performance that so often creates a double whammy when valuation multiples follow the profitability south? What is Tian’s advice in differentiating between temporary problems and a decline that is really the first phase of a secular return to normality for a once great company?
One further unaddressed issue in this is how the allegedly contrarian value investors reconcile their 2.0 style choice with the fact that all value investors now are quality growth investors and almost non – save Seth Klarman – are deep value investors. This makes most value investors more mainstream investors than they should really be comfortable with. This is an okay book. However, it needs to be more forward looking.
Tian gives the largest credit to Peter Lynch, Warren Buffet, Donald Yacktman and Howard Marks in shaping his thinking. I would argue that the largest impact might instead have been the TMT-crash of 2000/02. The author who is a physicist by training and who used to work with fiber optic communication lost his shirt on investing in the companies he thought had a great future and where he knew the technology inside out. Like all good learners Tian turned this setback and defining moment to something positive and he immersed himself in the ways of successful value investors and soon started his website – which must be said, is now a great resource for value investors.
Invest Like a Guru contains numerous wise thoughts from the obviously very learned author. Still the level is quite basic and I sometime miss the nerve of the writing of Tian’s heroes such as Howard Marks. The structure is also fairly basic with a description of what the author has picked up from his role models, why an investor should chose the franchise value type of investing and how to execute it, including the selection of holdings and the portfolio construction. Tian advocates quite categorically for investing in a fairly thin slice of the equity market but he describes the process well. Perhaps somewhat too much attention is given to the historic performance of companies and too little to how to secure that they will perform equally well in the future. A chapter on barriers-to-entries and competitive advantages wouldn’t have been out of place.
At times there are a bit too many references to the author’s web site, which some readers can potentially find disturbing. This isn’t my main objection to the text however. It is the grudge the author seems to hold against deep value investing. Chapter 2 is dedicated to arguing against this “value investing 1.0” and correctly points to the many difficulties it entails. Then later on in the book Tian returns to discuss the main problem with deep value investing – the problem with value traps. Again it is a fair or even good description of the topic but it is to me quite unclear why it’s there. Why discuss the problem of an investment style that you are not writing a book about when you leave out the main difficulty when it comes to investing in high quality growth companies – the gravity of the reversal-to-the mean in performance that so often creates a double whammy when valuation multiples follow the profitability south? What is Tian’s advice in differentiating between temporary problems and a decline that is really the first phase of a secular return to normality for a once great company?
One further unaddressed issue in this is how the allegedly contrarian value investors reconcile their 2.0 style choice with the fact that all value investors now are quality growth investors and almost non – save Seth Klarman – are deep value investors. This makes most value investors more mainstream investors than they should really be comfortable with. This is an okay book. However, it needs to be more forward looking.
February 28, 2018
What impressed me the most about this book is that even though it's sold as a beginner's guide to value investing (a purpose which it definitely serves well!) it manages to include some of the best summary of valuation techniques that I've ever read. I also give props to the author for including a pretty good checklist of items to check before deciding on an investment.
The reason why this does not get 5* from me is that at many times it reads more like an ad for GuruFocus.com than anything else. I understand the author's willingness in advertising his platform but it ends up being way too distracting and not that helpful in my opinion.
The reason why this does not get 5* from me is that at many times it reads more like an ad for GuruFocus.com than anything else. I understand the author's willingness in advertising his platform but it ends up being way too distracting and not that helpful in my opinion.
March 27, 2021
There are three things you never get back- time, opportunity and your words. The book and web site from this author will save you a ton of time if you want to research company data as an investor. Other reviews pan the author for references to the, yes pricy, website. He used the book as a primer for the site. He is trying to help you by elaborating on measures used to gauge opportunities. Disclosure- I’m a financial professional and analysts who loves saving time. You can get all of the information in the book from other sources, yes free, or save a ton of time with this well organized presentation primer on securities analysis with all the data compiled on one website. Your choice! Excellent short read with good references and an organized presentation of valuation analysis- highly recommend!!!
November 23, 2017
This book is not a revolutionary book on investing and - despite the title - is not solely based on what you know as "value investing". Charlie Tian does a tremendously great job at explaining the concepts, principles, different valuation methods, etc. to a reader who is familiar with finance but inexperienced with value investing.
What I really disliked are the remarks to his business in nearly every chapter. I do not doubt that his service is of high value for value investors. However, mentioning it in every chapter weakens the credibility of the book and makes it feel like a marketing instrument.
It's a 6,5/10
What I really disliked are the remarks to his business in nearly every chapter. I do not doubt that his service is of high value for value investors. However, mentioning it in every chapter weakens the credibility of the book and makes it feel like a marketing instrument.
It's a 6,5/10
December 12, 2021
The book provides a good introduction to value investing. It structured my understanding of how the analysis of companies’ businesses is done. In some sense it changed my mind as I thought there’s no point in trying to beat S&P500. I’m still not sure that I’ll be able. But if I decide to try I’ll re-read this book.
May 17, 2020
This is a very good book. It does what the title says: it teaches how to invest in good quality business at a good price. I heard about the book when using gurufocus. In the book the author keeps referencing his plateform, but I was expecting that because that's how I heard about the book and it's mentioned in the other comments here. Once you expect it, I don't think it's so annoying. Anyway, it gets to the point: summarizing the most common valuation techniques. I learned what I wanted to know. I don't give a 5/5 because I wasn't mind blown but it's a well rounded book. If you already know you want to get into value investing instead of buying index funds, then I would recommend buying this book.
August 12, 2017
Manual for budding value investors
I'm trying to learn the principles of value investing and have found many books that tell stories about the gurus past trades. Very few give a forward looking actionable plan to value invest. Charlie has done a fantastic job of putting a framework together for the person interested in becoming a value investor. Thanks Charlie!
I'm trying to learn the principles of value investing and have found many books that tell stories about the gurus past trades. Very few give a forward looking actionable plan to value invest. Charlie has done a fantastic job of putting a framework together for the person interested in becoming a value investor. Thanks Charlie!
September 14, 2018
Excellent discussion of value investing with a deep dive into fundamentals and theory. Distilled information and a quick read. Towards the end it gets a little too deep into fundamentals and cyclical valuations, Dr. Tian does a great job summarizing so parts can be skipped if need be. I got a lot out of this book that will surely shape my investing going forward.
August 15, 2021
A very solid and up to date look at investing in stocks. I enjoyed the readability of this book and even though each topic is only covered in a simple to moderate level of detail the author also provides recommendations of books that cover topics in depth.
May 5, 2020
Covers simple investing concepts from the likes of Buffett, Lynch, others. Very basic. Can be read quickly. it’ll be more like a revision on fundamental investing. Very good for beginners.
December 29, 2021
Possibly the best finance and investing books I've ever read, recommend reading a few times to get the full grasp out of the book.
October 29, 2023
A good introduction to value investing, with interesting points made. Regretfully, these points are generally derived from direct quotes from famous investors (Buffett and co.) with not much value added by author. Also, author uses this book as a platform to advertise access to his website which contains the (publicly available) information of 1000s of stocks in one place and crunches a few numbers with it. Access starts at around $500 per year, which seems a bit steep compared to some of the competition and, of course, the fact that the information is freely available. Gathering data builds character.
Author makes a prediction based on fundamentals, which didn’t age very well: (quote) “As of February 2017, the [Projected Future Market Returns] calculation shows that the stock market is likely to return −0.5 percent per year, including dividends, in the next eight years. This paints a very pale picture for future market returns. Only at the peak of the tech bubble in 2000 was the projected return this low.” (Chapter 10)
Well, in February 2017 the S&P500 index stood at 2300, whereas eight years later, in February 2023, it stood around 4300. So that “likely -0.5% total return” didn’t quite transpire.
Author continues: (quote) “But this doesn't mean there won't be opportunities in the stock market. The stock market will continue to cycle, as it always has. It is probably close to one extreme right now. It may swing to the other extreme quicker than average investors are prepared for. In the meantime, it will create tremendous opportunities for those who understand cycles and are well prepared.”
Author lives on a mountain of data and won’t (can’t) even call whether the 2017 market is in a high or low extreme. But, you know, people who understand cycles and are well-prepared will be able to, like, benefit tremendously. If not author, then who?
“Predictions make fools of us all” - you may quote me on that. But I do like the fact that he made one.
In summary then, while I started very positive about this book, as I read I kinda lost my enthusiasm for it. After the introductory chapters, author starts mentioning that “all this data and calculations are available on my website” at least twice per chapter, which gets really old really soon. So while at really appreciate some of the insights presented, in the end I will settle on a (curmudgeonly) 3 stars.
Author makes a prediction based on fundamentals, which didn’t age very well: (quote) “As of February 2017, the [Projected Future Market Returns] calculation shows that the stock market is likely to return −0.5 percent per year, including dividends, in the next eight years. This paints a very pale picture for future market returns. Only at the peak of the tech bubble in 2000 was the projected return this low.” (Chapter 10)
Well, in February 2017 the S&P500 index stood at 2300, whereas eight years later, in February 2023, it stood around 4300. So that “likely -0.5% total return” didn’t quite transpire.
Author continues: (quote) “But this doesn't mean there won't be opportunities in the stock market. The stock market will continue to cycle, as it always has. It is probably close to one extreme right now. It may swing to the other extreme quicker than average investors are prepared for. In the meantime, it will create tremendous opportunities for those who understand cycles and are well prepared.”
Author lives on a mountain of data and won’t (can’t) even call whether the 2017 market is in a high or low extreme. But, you know, people who understand cycles and are well-prepared will be able to, like, benefit tremendously. If not author, then who?
“Predictions make fools of us all” - you may quote me on that. But I do like the fact that he made one.
In summary then, while I started very positive about this book, as I read I kinda lost my enthusiasm for it. After the introductory chapters, author starts mentioning that “all this data and calculations are available on my website” at least twice per chapter, which gets really old really soon. So while at really appreciate some of the insights presented, in the end I will settle on a (curmudgeonly) 3 stars.
June 24, 2021
This book is very good information, but not the best writing. The author throws a lot of information at you fast and it's easy to get into the weeds quickly. Rule Number One gives a lot of very similar information, and I would recommend starting there before giving this one a try. I mainly picked this one up because I was interested in his stock website, GuruFocus. The website has some similar problems to the book - very good data but poorly organized - although there are a few features I really like. Ok book, but there are a lot of other books I would recommend before this if you are interested in investing.
March 19, 2018
Must read for who invest for long term in stocks. Simple and very easy to understand of every concept which author is communicating . Must read
Must read those who investing for long term. Value investing is intelligent investing as Charlie munger says.
Guru focus website is very useful.
Must read those who investing for long term. Value investing is intelligent investing as Charlie munger says.
Guru focus website is very useful.
March 7, 2023
Good Advice Heavily Salted with Advertising
I read the reviews before buying this book, and was wary due to all the comments I read about self-promotion/advertising. Yes, the book constantly references the tools on GuruFocus, but I didn’t find it particularly bothersome. I thought the advice was worthwhile, and I not disappointed.
I read the reviews before buying this book, and was wary due to all the comments I read about self-promotion/advertising. Yes, the book constantly references the tools on GuruFocus, but I didn’t find it particularly bothersome. I thought the advice was worthwhile, and I not disappointed.
January 5, 2025
I was unimpressed. Maybe it's because I've already read a bunch about Warren Buffet, and he spent a long time comparing to him, or that much of this book feels like common sense to me. Moreover, when you compare his GFGF ETF to the S&P 500 or a small cap value index, it doesn't seem to be doing any better, maybe worse.
March 7, 2020
Great introduction to investing, I learnt a lot through the thorough explanation of each metric every investor should know. A bit annoying Charlie Tian decided to aggressively advertise for his Gurus website though.
October 6, 2021
Hands on practical manual for the new starters
I am going to read this book again and again. Very well written in n easy to understand English. Only question is whether I should buy the GuruFocus membership as well?
I am going to read this book again and again. Very well written in n easy to understand English. Only question is whether I should buy the GuruFocus membership as well?
Read
December 29, 2023An excellent primer on value investing, this book provides clear insights into the principles of investing in good companies. It equips readers with practical tools for evaluating companies and offers references to various strategies for further exploration.
August 27, 2017
Good for beginners
It is a Very Good summary on investing, specially for the beginners who don't read much in the field of investment.
It is a Very Good summary on investing, specially for the beginners who don't read much in the field of investment.
November 3, 2018
Really good book with some good, simple insights and reminders. Buy quality companies and be optimistic over the longer term. Low debt and persistence in margins are key elements.
November 6, 2018
Basically the author is advertising his website.
November 16, 2018
Understood 70% of it, good brain exercise.
February 5, 2019
Good book that seemed to describe a good way of managing investments. I didn't put it into practice and won't probably use it in the future.
March 11, 2019
This is a must read if you are long term investor. Charlie is truly a genius and his book is a great way to learn to invest for long term. As is his website gurufocus.
June 29, 2019
know this book because I follow gurufocus website. The author is the owner of that website. It's a good book
October 19, 2021
Good read.
May 11, 2022
الكتاب جيد لمن لديه اطلاع بالاستمثار… لكن يعيبه انه شرح سريع لعديد من المفاهيم .. والعيب الاخر ان الكتاب اداة تسويق لموقع الكاتب وخدمته الخاصة.
October 7, 2022
One of my all time favourite books on value investing. I highly recommend it to new investors.
December 1, 2023
A great, straight forward primer on value investing
A direct way to read the main points of over s hundred years of value investing books and advice. Clear, practical, useful.
A direct way to read the main points of over s hundred years of value investing books and advice. Clear, practical, useful.
Displaying 1 - 30 of 35 reviews