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Good Stocks Cheap: Value Investing with Confidence for a Lifetime of Stock Market Outperformance
Power through the ups and downs of the market with the Value Investing Model.
Stock prices fluctuate unpredictably. But company values stay relatively steady. This insight is the basis of value investing, the capital management strategy that performs best over the long term.
With Good Stocks Cheap, you can get started in value investing right now. Longtime outperforming value investor, professor, and international speaker Kenneth Jeffrey Marshall provides step-by-step guidance for creating your own value investing success story. You'll learn how
-Master any company with fundamental analysis
-Distinguish between a company's stock price from its worth
-Measure your own investment performance honestly
-Identify the right price at which to buy stock in a winning company
-Hold quality stocks fearlessly during market swings
-Secure the fortitude necessary to make the right choices and take the right actions
Marshall leaves no stone unturned. He covers all the fundamental terms, concepts, and skills that make value investing so effective. He does so in a way that's modern and engaging, making the strategy accessible to any motivated person regardless of education, experience, or profession. His plain explanations and simple examples welcome both investing newcomers and veterans.
Good Stocks Cheap is your way forward because the Value Investing Model turns market gyrations into opportunities. It works in bubbles by showing which companies are likely to excel over time, and in downturns by revealing which of these leading businesses are the most underpriced.
Build a powerful portfolio poised to deliver outstanding outcomes over a lifetime. Put the strength of value investing to work for you with Good Stocks Cheap.
Stock prices fluctuate unpredictably. But company values stay relatively steady. This insight is the basis of value investing, the capital management strategy that performs best over the long term.
With Good Stocks Cheap, you can get started in value investing right now. Longtime outperforming value investor, professor, and international speaker Kenneth Jeffrey Marshall provides step-by-step guidance for creating your own value investing success story. You'll learn how
-Master any company with fundamental analysis
-Distinguish between a company's stock price from its worth
-Measure your own investment performance honestly
-Identify the right price at which to buy stock in a winning company
-Hold quality stocks fearlessly during market swings
-Secure the fortitude necessary to make the right choices and take the right actions
Marshall leaves no stone unturned. He covers all the fundamental terms, concepts, and skills that make value investing so effective. He does so in a way that's modern and engaging, making the strategy accessible to any motivated person regardless of education, experience, or profession. His plain explanations and simple examples welcome both investing newcomers and veterans.
Good Stocks Cheap is your way forward because the Value Investing Model turns market gyrations into opportunities. It works in bubbles by showing which companies are likely to excel over time, and in downturns by revealing which of these leading businesses are the most underpriced.
Build a powerful portfolio poised to deliver outstanding outcomes over a lifetime. Put the strength of value investing to work for you with Good Stocks Cheap.
240 pages, Kindle Edition
Published June 23, 2017
134 people are currently reading
507 people want to read
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Displaying 1 - 15 of 15 reviews
August 27, 2017
En "wake-up call" for amatørinvestorer som meg selv. I løpet av de første kapitlene ble det krystallklart for meg at det jeg har drevet med til nå på investeringsfronten er spekulasjon og gambling.
Denne boken gir folk det de trenger av bakgrunn og teknikker for å bli en smartere investor. Men hvorfor skal man egentlig bry seg? Svaret er helt enkelt at "value investing" er den eneste investeringsstrategien som slår indeksfond over tid. Og det er ikke en eller noen få studier som bekrefter dette; ALLE studier på temaet bekrefter dette.
Konklusjonen for små (og store) investorer er at hvis man a) ikke ønsker, vil eller evner å sette seg inn i "value investing" så kjøper man indeksfond, b) dersom man finner glede i å analysere selskaper, slåss mot psykologiske barrierer og forvalte en liten portefølje med lavt prisede aksjer av førsteklasses kvalitet så er "value investing" essensielt.
Dette krever imidlertid en ståldisiplin. Premien på andre siden er en forventet avkastning på 15% årlig over tid...
Denne boken gir folk det de trenger av bakgrunn og teknikker for å bli en smartere investor. Men hvorfor skal man egentlig bry seg? Svaret er helt enkelt at "value investing" er den eneste investeringsstrategien som slår indeksfond over tid. Og det er ikke en eller noen få studier som bekrefter dette; ALLE studier på temaet bekrefter dette.
Konklusjonen for små (og store) investorer er at hvis man a) ikke ønsker, vil eller evner å sette seg inn i "value investing" så kjøper man indeksfond, b) dersom man finner glede i å analysere selskaper, slåss mot psykologiske barrierer og forvalte en liten portefølje med lavt prisede aksjer av førsteklasses kvalitet så er "value investing" essensielt.
Dette krever imidlertid en ståldisiplin. Premien på andre siden er en forventet avkastning på 15% årlig over tid...
March 18, 2025
I read Good Stocks Cheap alongside a value investing class I took during the winter 2025 semester at Stanford. While I don’t have a formal educational background in investing or related fields, I have spent the past year educating myself through extensive reading. Before this, I was familiar with basic investment jargon and the core principles of value investing, as taught by Benjamin Graham and Warren Buffett. However, I lacked concrete guidelines and a structured framework to confidently assess publicly traded equities.
The book Good Stocks Cheap by Kenneth provided exactly that. It gave me a clear set of quantitative and qualitative criteria to evaluate a business and determine its worth. I found particular value in learning about the importance of operating income, return on capital employed, customer and supplier breadth and forces analysis, and shareholder friendliness. These concepts significantly improved my ability to analyze companies with a structured approach.
That said, some foundational knowledge of financial terminology is necessary to get the most out of this book. A reader with no prior exposure to investment concepts might struggle with certain sections, but for those with a basic understanding, it serves as an excellent practical guide to value investing.
The book Good Stocks Cheap by Kenneth provided exactly that. It gave me a clear set of quantitative and qualitative criteria to evaluate a business and determine its worth. I found particular value in learning about the importance of operating income, return on capital employed, customer and supplier breadth and forces analysis, and shareholder friendliness. These concepts significantly improved my ability to analyze companies with a structured approach.
That said, some foundational knowledge of financial terminology is necessary to get the most out of this book. A reader with no prior exposure to investment concepts might struggle with certain sections, but for those with a basic understanding, it serves as an excellent practical guide to value investing.
August 20, 2018
Value investing might be described as the practice of buying and holding stocks that according to the investor’s best judgment have a suitable probability of having a substantially higher value than current price. The insistence on such a margin of safety is in part a philosophical issue but – similar to the requirement of tilting probabilities in one’s favor – is also a very practical issue of applying a suitable and rational investment process. In Good Stocks Cheap Kenneth Jeffrey Marshall, an investor and academic who teaches value investing and asset management at the Stockholm School of Economics and at University of California, shares his personal value investing process.
Although the author covers the basics of value investing it has to be said from the outset that this is not a book for anyone seeking deeper knowledge of finer nuances on the topic. This is a book on process. And mainly the process of selecting stocks to invest in. As such, important topics worthy of entire books in themselves, such as capital allocation, insider dealings, selling positions, moats etc. are covered in one or a few pages each. The benefit of this book instead lies in how explicit it is in penciling out how to actually perform the craft of value investing. Execution matters greatly in the potential success of investing.
The title is an apt description of the content as value investing in this case refers to the currently popular quality-compounding genre, not investing in low valuation multiple, bombed out, deep value stocks. This is a Joel Greenblatt Magic Formula-type of stock selection but with a quality bent.
The author suggests a sequential process of analytical steps for a stock to pass to qualify as a portfolio holding. Firstly, by looking to a number of angles the investor must be able to say that he truly understands the business of the company. If not, he should move on to another candidate. Secondly, it must qualify as a good business. In this Marshall looks to the historical financial success of the company, the indications of whether this success will continue into the future and of how shareholder friendly the management is. After weeding out bad businesses the next needle(s) to pass is the parallel decision on if this good stock is also cheep judging from the absolute level of a number of valuation multiples and if the investor in the process of analyzing the qualities and inexpensiveness of the stock has been free from biases. If all boxes are ticked it could be warranted to allocate 10% of the portfolio to the stock. It’s quite easy to visualize what a flowchart of the process would look like - and Marshall offers his version. He subsequently presents a short chapter on idea generation that logistically perhaps should have been placed earlier in the book. Further, there is no advice on what to do during the times when no stocks qualify, as all good stocks are expensive. Is cash then the preferred option?
The text is written in an accessible language making it suitable for the novice investor, but is not at all dumbed down due to this. Writers who have taught value investing – such as Ben Graham and Bruce Greenwald – have often had the chance to refine how they explain topics to an audience and this gives great clarity to their texts - so also in this case. The one section that doesn’t come out as well is chapters 6 to 10 that gives a combination of a basic accounting course and further shows which adjustments to the accounting Marshall thinks necessary to render the financial ratios best suited for his process. This section would have benefited from incorporating a case study to be followed throughout the chapters. Instead the reader in appendices and 10-K’s online get to work with the accounting of GAP, but few readers ever read appendices or look up online annual reports in parallel to reading a book. Still, this section is already a quarter of the book – perhaps Marshall didn’t want to burden the text further?
Growth and momentum has ruled this investment cycle. Value investing isn’t chic anymore. Thus, now might be the time to catch the turning tide. This book shows one way forward.
Although the author covers the basics of value investing it has to be said from the outset that this is not a book for anyone seeking deeper knowledge of finer nuances on the topic. This is a book on process. And mainly the process of selecting stocks to invest in. As such, important topics worthy of entire books in themselves, such as capital allocation, insider dealings, selling positions, moats etc. are covered in one or a few pages each. The benefit of this book instead lies in how explicit it is in penciling out how to actually perform the craft of value investing. Execution matters greatly in the potential success of investing.
The title is an apt description of the content as value investing in this case refers to the currently popular quality-compounding genre, not investing in low valuation multiple, bombed out, deep value stocks. This is a Joel Greenblatt Magic Formula-type of stock selection but with a quality bent.
The author suggests a sequential process of analytical steps for a stock to pass to qualify as a portfolio holding. Firstly, by looking to a number of angles the investor must be able to say that he truly understands the business of the company. If not, he should move on to another candidate. Secondly, it must qualify as a good business. In this Marshall looks to the historical financial success of the company, the indications of whether this success will continue into the future and of how shareholder friendly the management is. After weeding out bad businesses the next needle(s) to pass is the parallel decision on if this good stock is also cheep judging from the absolute level of a number of valuation multiples and if the investor in the process of analyzing the qualities and inexpensiveness of the stock has been free from biases. If all boxes are ticked it could be warranted to allocate 10% of the portfolio to the stock. It’s quite easy to visualize what a flowchart of the process would look like - and Marshall offers his version. He subsequently presents a short chapter on idea generation that logistically perhaps should have been placed earlier in the book. Further, there is no advice on what to do during the times when no stocks qualify, as all good stocks are expensive. Is cash then the preferred option?
The text is written in an accessible language making it suitable for the novice investor, but is not at all dumbed down due to this. Writers who have taught value investing – such as Ben Graham and Bruce Greenwald – have often had the chance to refine how they explain topics to an audience and this gives great clarity to their texts - so also in this case. The one section that doesn’t come out as well is chapters 6 to 10 that gives a combination of a basic accounting course and further shows which adjustments to the accounting Marshall thinks necessary to render the financial ratios best suited for his process. This section would have benefited from incorporating a case study to be followed throughout the chapters. Instead the reader in appendices and 10-K’s online get to work with the accounting of GAP, but few readers ever read appendices or look up online annual reports in parallel to reading a book. Still, this section is already a quarter of the book – perhaps Marshall didn’t want to burden the text further?
Growth and momentum has ruled this investment cycle. Value investing isn’t chic anymore. Thus, now might be the time to catch the turning tide. This book shows one way forward.
April 9, 2019
Great step by step accounting book tutorial of analyzing companies for decision-making criteria of share purchases, entirely from the "fundamentals" approach. Much of the book focuses on understanding quarterly and annual public accounting data, things you'd find in the 10k etc. Not much to say, except w/ the lack of appending formula and quotients crib sheet, this is less than ideal for learning/applications purposes.
There's some interesting material outside of the strict quotients analysis that centres on understanding how management and executive compensation can potentially correlate to poor future performance, mostly through understanding how certain executives could be more risk-accepting accepting and active, instead of defensive. A lot of this reads like organizational sociology, but it squares w/ what many others have observed and written about.
A couple use cases which are interesting to highlight the difference in analyzing IP-centered tech firms (Linkedin), whereby one may focus on intangible assets, and older firms like the Gap, where some may choose to observe multiples of trading value over assets net intangibles etc. Great book as a feeder into learning deeper about some of these more detailed accounting concepts like Free Cash Flows, selecting correct discount rates (sounds like hand-waving) etc.
Probably requires a physical copy alongside the listening. Recommend as an intro and/or reference
There's some interesting material outside of the strict quotients analysis that centres on understanding how management and executive compensation can potentially correlate to poor future performance, mostly through understanding how certain executives could be more risk-accepting accepting and active, instead of defensive. A lot of this reads like organizational sociology, but it squares w/ what many others have observed and written about.
A couple use cases which are interesting to highlight the difference in analyzing IP-centered tech firms (Linkedin), whereby one may focus on intangible assets, and older firms like the Gap, where some may choose to observe multiples of trading value over assets net intangibles etc. Great book as a feeder into learning deeper about some of these more detailed accounting concepts like Free Cash Flows, selecting correct discount rates (sounds like hand-waving) etc.
Probably requires a physical copy alongside the listening. Recommend as an intro and/or reference
February 21, 2020
4.5 stars. read the book and took the author's class Bus123 in Fall 2019.
Good:
(1) it's simple and actionable, backed with proven track record, and
(2) its general principle is applicable to investment in other asset classes.
Wish to extend the value investment model to covering:
(1) earlier stages of future high-growth stocks in tech and pharmaceutical industries, and
(2) other asset classes, notably mutual funds.
Good:
(1) it's simple and actionable, backed with proven track record, and
(2) its general principle is applicable to investment in other asset classes.
Wish to extend the value investment model to covering:
(1) earlier stages of future high-growth stocks in tech and pharmaceutical industries, and
(2) other asset classes, notably mutual funds.
November 9, 2020
You don't just buy a book. You buy a value investing course.
I rarely write reviews but I'll need to say something about this book by Kenneth Jeffrey Marshall.
You don't just buy a book. You buy a value investing course. Just looking at the contents prepares one for what's coming.
This book is simply practical. You read it, understand it, and apply Kenneth's model to create your value stock portfolio.
It details both quantitative and qualitative analysis for those who don't just want to buy a stock, but marry a company.
I'm a beginner so a lot of the calculation twists flew over my head. I recommend total beginners to first read Why Stocks Go Up and Down by William Pike before reading this one. Just so you don't get completely lost.
Overall, it was a pleasurable read since Kenneth writes for the layman like me and not the experienced analyst.
One more thing. You will be glad to know that you also pay for the structure. Kenneth provides a step by step guide to value investing analysis and how to screen for ideas or decide when to sell. Honestly, it could be better than most +200 dollars courses out there.
If he ever creates a video course, I'll consider buying it.
I rarely write reviews but I'll need to say something about this book by Kenneth Jeffrey Marshall.
You don't just buy a book. You buy a value investing course. Just looking at the contents prepares one for what's coming.
This book is simply practical. You read it, understand it, and apply Kenneth's model to create your value stock portfolio.
It details both quantitative and qualitative analysis for those who don't just want to buy a stock, but marry a company.
I'm a beginner so a lot of the calculation twists flew over my head. I recommend total beginners to first read Why Stocks Go Up and Down by William Pike before reading this one. Just so you don't get completely lost.
Overall, it was a pleasurable read since Kenneth writes for the layman like me and not the experienced analyst.
One more thing. You will be glad to know that you also pay for the structure. Kenneth provides a step by step guide to value investing analysis and how to screen for ideas or decide when to sell. Honestly, it could be better than most +200 dollars courses out there.
If he ever creates a video course, I'll consider buying it.
July 9, 2023
O livro é bem estruturado e fácil de seguir, tornando-o adequado para iniciantes e investidores mais experientes. A linguagem clara e direta para explicar conceitos complexos, tornando-os compreensíveis para leitores de todos os níveis de experiência.
Não é explicada apenas a teoria por trás do investimento em valor, mas também fornece um guia passo a passo detalhado sobre como aplicar esses princípios na prática. Ensina os leitores a identificar ações subvalorizadas, calcular seu valor intrínseco e tomar decisões de investimento informadas.
Um dos pontos fortes do livro é a ênfase na disciplina e paciência como chaves para o sucesso do investimento.
Em resumo, "Good Stocks Cheap" é o melhor guia prático e direto para o investimento em valor que eu já li!
Não é explicada apenas a teoria por trás do investimento em valor, mas também fornece um guia passo a passo detalhado sobre como aplicar esses princípios na prática. Ensina os leitores a identificar ações subvalorizadas, calcular seu valor intrínseco e tomar decisões de investimento informadas.
Um dos pontos fortes do livro é a ênfase na disciplina e paciência como chaves para o sucesso do investimento.
Em resumo, "Good Stocks Cheap" é o melhor guia prático e direto para o investimento em valor que eu já li!
September 1, 2021
Needs to be much shorter and the author puts handguns into the immoral failure category lol…someone should tell hem guns save WAY more life than they take because people use the gun…the gun doesn’t self animate
April 11, 2018
A good introduction to Value investing. I think it would be helpful to know why the author recommends a certain multiple for EV/OI and Mcap/FCF
October 13, 2018
This book shares simple and helpful principles that could be applied to value investing. I would like to recommend this book to anyone who would like to enter the world of value investing.
May 21, 2023
good read and serves as a reference book, summary chapters at the end helps to not have to re-read it.
April 27, 2018
Light weight analysis of stocks, good mix of theory & case studies
The book starts with the typical value investing philosophy. A lot of qualitative discussions. The most value is in the case studies. Diverse non-glamorous companies are analyzed. Several key ratios to consider before investing are discussed. The link to book resources are broken.
The book starts with the typical value investing philosophy. A lot of qualitative discussions. The most value is in the case studies. Diverse non-glamorous companies are analyzed. Several key ratios to consider before investing are discussed. The link to book resources are broken.
October 20, 2022
Amazing book by my Value Investing teacher at university. Presents the value investing model taught at lectures and guides the prospecting investor through the technical and psychological aspects of long-term stock investing.
Talks about the reasons behind the metrics and psychological reasons behind succesful investing. Worth pushing through the difficult sections.
Talks about the reasons behind the metrics and psychological reasons behind succesful investing. Worth pushing through the difficult sections.
February 3, 2024
A good introductory guide to the theory and practice of stock valuation and value investing. A very practical book that serves as an excellent first primer - I have bought it for others as an introduction as a result. Ideally could be paired with a more theoretical book, also short, like you can be a stock market genius by Joel Greenblatt.
September 1, 2021
Needs to be much shorter and the author puts handguns into the immoral failure category lol…someone should tell hem guns save WAY more life than they take because people use the gun…the gun doesn’t self animate
Displaying 1 - 15 of 15 reviews