What do you think?
Rate this book
Where the Money Is: Value Investing in the Digital Age
“One of the best books I have read on investing in years. ” —Bill Ackman, founder and CEO, Pershing Square Capital Management
From a successful investor and a contributor to Barron’s and Fortune comes a once-in-a-lifetime book that gives modern investors what they need a fresh guide to making money in a stock market now dominated by tech stocks.
Technological change is reshaping the economy in a way not witnessed since Henry Ford introduced the assembly line. A little more than ten years ago, only two of the ten most valuable publicly traded companies in the world were digital enterprises—today, they comprise eight of the top ten. Investors around the world are struggling to understand the Digital Age and how they can use the stock market to profit from it.
Author Adam Seessel understands. Several years ago, he watched his old-school portfolio built using traditional value investing principles decline while the market, driven by “expensive” tech stocks, advanced. Determined to reverse course, he set off in search of a new investment paradigm, one that remained true to the discipline that Ben Graham gave us a century ago while reflecting the new realities of the Digital Age.
In this “helpful take on playing the stock market” (Publishers Weekly), Seessel introduces a refreshed value-based framework that any investor, professional or amateur, can use to beat the modern market. Like all sectors, the tech sector follows certain rules. We can study these rules, understand them, and invest accordingly. The world is changing, and we can profit from it.
Approaching tech this way, the economy’s current changes and the rapid rise of tech stocks are not reasons to be frightened or disoriented—they’re reasons to be excited. Infused with the same kind of optimism and common sense that inspired Benjamin Graham’s The Intelligent Investor and Peter Lynch’s One Up on Wall Street, Where the Money Is ushers in a new era of modern value investing.
From a successful investor and a contributor to Barron’s and Fortune comes a once-in-a-lifetime book that gives modern investors what they need a fresh guide to making money in a stock market now dominated by tech stocks.
Technological change is reshaping the economy in a way not witnessed since Henry Ford introduced the assembly line. A little more than ten years ago, only two of the ten most valuable publicly traded companies in the world were digital enterprises—today, they comprise eight of the top ten. Investors around the world are struggling to understand the Digital Age and how they can use the stock market to profit from it.
Author Adam Seessel understands. Several years ago, he watched his old-school portfolio built using traditional value investing principles decline while the market, driven by “expensive” tech stocks, advanced. Determined to reverse course, he set off in search of a new investment paradigm, one that remained true to the discipline that Ben Graham gave us a century ago while reflecting the new realities of the Digital Age.
In this “helpful take on playing the stock market” (Publishers Weekly), Seessel introduces a refreshed value-based framework that any investor, professional or amateur, can use to beat the modern market. Like all sectors, the tech sector follows certain rules. We can study these rules, understand them, and invest accordingly. The world is changing, and we can profit from it.
Approaching tech this way, the economy’s current changes and the rapid rise of tech stocks are not reasons to be frightened or disoriented—they’re reasons to be excited. Infused with the same kind of optimism and common sense that inspired Benjamin Graham’s The Intelligent Investor and Peter Lynch’s One Up on Wall Street, Where the Money Is ushers in a new era of modern value investing.
265 pages, Kindle Edition
Published May 24, 2022
174 people are currently reading
1291 people want to read
Ratings & Reviews
Friends & Following
Create a free account to discover what your friends think of this book!
Community Reviews
Displaying 1 - 30 of 77 reviews
July 9, 2022
The concept is good his execution is bad… The long debate between the old value vs the new value. The author uses mr. Buffett a lot for example to justify his point, however it is 100% fact that Buffett just don’t invest in the way he tries to say, his Apple example is just false. Buffett bought Apple when they trade at 14x TTM p/e and not 14x 3 years' time p/e where you are doing lots of accounting games to get there like adjusting for normalize r&d or marketing. This is pure speculation on growth that you have 0 visibility and has nothing to do with value! This is amateur execution imo. He missed all the point behind the part of the “P” price you pay! Im sure he feels it these days when all the digital bubble burst. As well I really did not like the Bitcoin investment, I bet the author would have taken it out if he could do that now that it crashed!
June 4, 2022
Benjamin Graham is widely considered the father of value investing. His approach was to attempt to buy a dollar for fifty cents by purchasing shares of companies at depressed prices. And that was okay in the early twentieth century given the times.
Warren Buffett studied under Benjamin Graham and adapted value investing to include not just cheaply priced companies, but cheap companies which had great management and a durable competitive advantage which Warren called the company's moat.
Those two value investing viewpoints which Adam Seessel has labeled Value 1.0 and Value 2.0 have naturally lead to a new paradigm he calls Value 3.0.
Given that tech companies have little to depreciate in the way brick-and-mortar companies do, and that they generally have more R&D to expense on any given year's annual report, they appear more expensive as investments. These things affect the bottom line and the valuation. But their R&D expenses tend to be less "R" and more "D", the value of which should likely not be expensed fully in the year they are realized but rather depreciated over a time period or life for which the "D" or development weighs favorably for the company—just the way a building or piece of machinery is depreciated. The resulting adjustments in GAAP (generally accepted accounting principals) would level the playing field for companies and their investors. And there's more—you'll have to read the book.
In my own perusal of annual reports that very question of the treatment of certain items and others like it have come to mind and this book answers those questions in a well written and quick reading manner.
If you've read Benjamin Graham, Peter Lynch, Warren Buffett, Mary Buffett, Greenblat, O'Neil, etc. then I would recommend Adam Seessel and this book to round out your investment journey. It provides the concepts needed to compare the old world apples to the new world oranges in a way that levels the playing field. It represents another tool for your investing tool-belt at a time when tech is finally maturing and the leaders have shown the savvy investor why they are the leaders.
Thanks, Adam, for this insightful viewpoint and your BMP checklist.
Warren Buffett studied under Benjamin Graham and adapted value investing to include not just cheaply priced companies, but cheap companies which had great management and a durable competitive advantage which Warren called the company's moat.
Those two value investing viewpoints which Adam Seessel has labeled Value 1.0 and Value 2.0 have naturally lead to a new paradigm he calls Value 3.0.
Given that tech companies have little to depreciate in the way brick-and-mortar companies do, and that they generally have more R&D to expense on any given year's annual report, they appear more expensive as investments. These things affect the bottom line and the valuation. But their R&D expenses tend to be less "R" and more "D", the value of which should likely not be expensed fully in the year they are realized but rather depreciated over a time period or life for which the "D" or development weighs favorably for the company—just the way a building or piece of machinery is depreciated. The resulting adjustments in GAAP (generally accepted accounting principals) would level the playing field for companies and their investors. And there's more—you'll have to read the book.
In my own perusal of annual reports that very question of the treatment of certain items and others like it have come to mind and this book answers those questions in a well written and quick reading manner.
If you've read Benjamin Graham, Peter Lynch, Warren Buffett, Mary Buffett, Greenblat, O'Neil, etc. then I would recommend Adam Seessel and this book to round out your investment journey. It provides the concepts needed to compare the old world apples to the new world oranges in a way that levels the playing field. It represents another tool for your investing tool-belt at a time when tech is finally maturing and the leaders have shown the savvy investor why they are the leaders.
Thanks, Adam, for this insightful viewpoint and your BMP checklist.
June 19, 2022
Written for the next generation of investors, Where the Money is provides a revised value-based framework to navigate a stock market dominated by tech enterprises.
Why?
It doesn’t take long for one to realise that traditional value investing principles have inherent flaws when it comes to digital enterprises - namely around P/E ratios, R&D and ‘brick and mortar’ factors (rather a lack thereof).
The solution?
Seessel proposes a Value 3.0 framework that builds upon the knowledge of Benjamin Graham (Value 1.0) and Warren Buffett (Value 2.0).
The Value 3.0 framework delivers the right mix of theoretical and practical guiding you through:
-The variance of Value 3.0 from Value 1.0 and 2.0
- Value 3.0 in action when reviewing company data
- Business management price (BMP) checklist
Takeaway:
A practical Value 3.0 framework you can immediately implement.
Who is this for:
- Anyone early in the process of building a portfolio with a value based investor lens
- Investors seeking a value based framework to analyse tech companies
- If you have read and enjoyed Benjamin Graham’s The Intelligent Investor and Peter Lynch’s One Up on Wall Street - this book is a must read.
Special shout out to Avid Reader Press, Adam Seessel and Netgalley for this eARC.
Why?
It doesn’t take long for one to realise that traditional value investing principles have inherent flaws when it comes to digital enterprises - namely around P/E ratios, R&D and ‘brick and mortar’ factors (rather a lack thereof).
The solution?
Seessel proposes a Value 3.0 framework that builds upon the knowledge of Benjamin Graham (Value 1.0) and Warren Buffett (Value 2.0).
The Value 3.0 framework delivers the right mix of theoretical and practical guiding you through:
-The variance of Value 3.0 from Value 1.0 and 2.0
- Value 3.0 in action when reviewing company data
- Business management price (BMP) checklist
Takeaway:
A practical Value 3.0 framework you can immediately implement.
Who is this for:
- Anyone early in the process of building a portfolio with a value based investor lens
- Investors seeking a value based framework to analyse tech companies
- If you have read and enjoyed Benjamin Graham’s The Intelligent Investor and Peter Lynch’s One Up on Wall Street - this book is a must read.
Special shout out to Avid Reader Press, Adam Seessel and Netgalley for this eARC.
April 30, 2024
Despite being an investing professional, I don't usually enjoy reading books on investing. This was a clear exception that now sits up there in mandatory reading for me with 'One up on Wall Street by Peter Lynch' and 'The Most Important Thing by Howard Marks'.
It is exceptional on two counts- one in that it shows the evolution of an investor's framework and details through the new arrived upon framework- Value 3.0. (The chapter on Earnings Power is especially brilliant, brilliant in its simplicity). The second however is how Adam Sessel chooses to end the book recognising that there would be a time when this framework too will be obsolete and would therefore require an upgrade- Value 4.0
The fact that this book is littered with investment workings made by the author makes it a very accessible and a direct read. It does not deal in the abstract. Never thought I would say this for a book on investing, but highly recommend reading this one!
It is exceptional on two counts- one in that it shows the evolution of an investor's framework and details through the new arrived upon framework- Value 3.0. (The chapter on Earnings Power is especially brilliant, brilliant in its simplicity). The second however is how Adam Sessel chooses to end the book recognising that there would be a time when this framework too will be obsolete and would therefore require an upgrade- Value 4.0
The fact that this book is littered with investment workings made by the author makes it a very accessible and a direct read. It does not deal in the abstract. Never thought I would say this for a book on investing, but highly recommend reading this one!
January 17, 2023
A good book that provides a framework for thinking about how to value and invest in tech and other high quality businesses that are typically associated with having high short term multiples. The author forecasts top line growth over the short term and normalises the margins to a more mature state. This enables a better comparison to companies that have more mature businesses and trade on low multiples. PE ratios are not a reliable indicator of value when investing in high quality businesses that have structural tailwinds driving growth for 5-10+years
January 10, 2023
A very good book building on Graham’s and Lynch’s thoughts. While it had many interesting points it wasn’t as much the new information but the new way of thinking about the information that appealed to me. Would recommend. 4.5 stars.
July 14, 2023
Adam Seessel, well done. I've read so many investment books over the years that I don't expect much when I sign on to read another. But the 6 pages of value in this are worth it. Earnings power is an intuitive and worthwhile concept. Bravo!
November 12, 2025
332.632 SEE, 2022, eAudio
1. Dot-com bubble, 2000, stock lost 80% value
2. Financial crisis in 2008 - 2009
3. Coronavirus pandemic in 2020
Warren Buffett buy $7 billon apple stock in 2017, his average return is 19.97%
Return on capital
Capital Allocation
BMP Checklist [Business Quality, Managment Quality, Price]
Question 1: How did tech get so big so fast?
1. Why Software Is Eating the World, Originally published in The Wall Street Journal on August 20, 2011.
by Mar Andreessen
cramming more components onto integrated circuits 1965 by Gordon Moore
Question 2: How do we respond as investors? (the subject of this book)
1. One Up On Wall Street: How to Use What You Already Know to Make Money in the Market [argue individual stock picking, how to pick out of date because digital age]
How to pick a stock
The author of this book argues:
2. Chapter 2
Value investing, 1.0. A short-term strategy. Often refer as "cigar butt investing". The gain of tax is often taxed at ordinary income instead of long-term capital gains. ideas: margin of safety & Mr. Market
Ben Graham, return is 20%, roughly double the market average, 1930 - 1956
3. Chapter 3 Value 3.0 and BMP Checklist [Business Quality, Managment Quality, Price]
Companies should possess:
Companies should possess: Management quality:
Chapter 7 Price and value 3.0 toolbox
GAAP vs. EVA (Economic Value Added)
GAAP requires nearly 100% of R & D and marketing outlays to be immediately expensed.
CAC / LTV (customer acquistion cost vs. Lifetime Value)
The End of Accounting and the Path Forward for Investors and Managers by Baruch Lev
Notes:
1. Moore's Law is the observation, first made by Gordon Moore, that the number of transistors on an integrated circuit doubles approximately every two years with a minimal increase in cost. Data show it is double in every 20 months.
2. GEICO stands for Government Employees Insurance Company. The name reflects the company's origins in 1936, when founders Leo and Lillian Goodwin created the company to serve U.S. federal government employees and military personnel as their initial customer base.
3. The phrase "Citius, Altius, Fortius" is Latin for "Faster, Higher, Stronger". It's the motto of the Olympic Games. For Tech motto, citis, parvius, melior, means Faster,Cheapter,better
4.
--I. Value investor [ use reverse to the mean; buy a stock when the market is voting on it; then wait until the market weight it]
--II. Growth investor
--III Momentum investor
Books mentioned:
1.1 Benjamin Graham: The Memoirs of the Dean of Wall Street
When Benjamin Graham died in 1976 at age 82, he had achieved legendary status on Wall Street. He had laid the foundation of modern security analysis, inspiring legions of disciples and personally mentoring such up-and-comers as Warren Buffett (who went to work for Graham in 1954). Graham was widely regarded as brilliant, successful, and ethical, a rare trinity of attributes in the rough-and-tumble world of investing.
1.2. Security Analysis: The Classic 1951 Edition by Benjamin Graham
1.3. The Intelligent Investor by Benjamin Graham
2. Understanding Wall Street pxiv [dig deeper]
https://investopedia.com [ for glossary]
3.The Theory of Investment Value
4. A Random Walk Down Wall Street: The Time-Tested Strategy for Successful Investing
5. The Only Investment Guide You'll Ever Need, eAudio
6. The Outsiders: Eight Unconventional CEOs and Their Radically Rational Blueprint for Success by William N. Thorndike Jr.
7. Capitalism without Capital: The Rise of the Intangible Economy by Jonathan Haskel
KCLS search books:
1. Put Your Money Where Your Life Is: How to Invest Locally Using Self-Directed IRAs and Solo 401(k)s
2. Personal Finance in Your 20s & 30s For Dummies (For Dummies.
3. The Everything Personal Finance in Your 20s & 30s Book: Eliminate your debt, manage your money, and build for an exciting financial future
1. Dot-com bubble, 2000, stock lost 80% value
2. Financial crisis in 2008 - 2009
3. Coronavirus pandemic in 2020
Warren Buffett buy $7 billon apple stock in 2017, his average return is 19.97%
Return on capital
Capital Allocation
BMP Checklist [Business Quality, Managment Quality, Price]
1. A small share of a large market, coupled with a sustainable competitive edge
2. A management team that thinks like owners and knows how to drive business value
3. A price that get you under twenty tines earning power, for a 5%+ earning yield.
Question 1: How did tech get so big so fast?
1. Why Software Is Eating the World, Originally published in The Wall Street Journal on August 20, 2011.
by Mar Andreessen
cramming more components onto integrated circuits 1965 by Gordon Moore
Question 2: How do we respond as investors? (the subject of this book)
1. One Up On Wall Street: How to Use What You Already Know to Make Money in the Market [argue individual stock picking, how to pick out of date because digital age]
How to pick a stock
Step 1: use your own everyday experience and common sense to identify above-average business
Step 2: invest in them
Step 3: Sit back and let magic of compounding do its work.
The author of this book argues:
1. We must remind ourselves that the stock market is mothing more than a collection of businesses and that investing in them has historically been the best way to build wealth.
2. We should acknowledge that the world's economy is increasing digital, so we must learn how digital companies create wealth.
3. We should invest in the best such companies, then let compounding do its job.
2. Chapter 2
Value investing, 1.0. A short-term strategy. Often refer as "cigar butt investing". The gain of tax is often taxed at ordinary income instead of long-term capital gains. ideas: margin of safety & Mr. Market
Ben Graham, return is 20%, roughly double the market average, 1930 - 1956
3. Chapter 3 Value 3.0 and BMP Checklist [Business Quality, Managment Quality, Price]
Companies should possess:
1. A low market share
2. Of a large and growing market
3. With a clearly identifiable competitive advantage that will allow the company to grow sales and profits for years to come
Companies should possess: Management quality:
Do the managers think and act like owners?
Do the managers understand what drives business value?
Chapter 7 Price and value 3.0 toolbox
GAAP vs. EVA (Economic Value Added)
GAAP requires nearly 100% of R & D and marketing outlays to be immediately expensed.
CAC / LTV (customer acquistion cost vs. Lifetime Value)
The End of Accounting and the Path Forward for Investors and Managers by Baruch Lev
Notes:
1. Moore's Law is the observation, first made by Gordon Moore, that the number of transistors on an integrated circuit doubles approximately every two years with a minimal increase in cost. Data show it is double in every 20 months.
2. GEICO stands for Government Employees Insurance Company. The name reflects the company's origins in 1936, when founders Leo and Lillian Goodwin created the company to serve U.S. federal government employees and military personnel as their initial customer base.
3. The phrase "Citius, Altius, Fortius" is Latin for "Faster, Higher, Stronger". It's the motto of the Olympic Games. For Tech motto, citis, parvius, melior, means Faster,Cheapter,better
4.
--I. Value investor [ use reverse to the mean; buy a stock when the market is voting on it; then wait until the market weight it]
--II. Growth investor
--III Momentum investor
Books mentioned:
1.1 Benjamin Graham: The Memoirs of the Dean of Wall Street
When Benjamin Graham died in 1976 at age 82, he had achieved legendary status on Wall Street. He had laid the foundation of modern security analysis, inspiring legions of disciples and personally mentoring such up-and-comers as Warren Buffett (who went to work for Graham in 1954). Graham was widely regarded as brilliant, successful, and ethical, a rare trinity of attributes in the rough-and-tumble world of investing.
1.2. Security Analysis: The Classic 1951 Edition by Benjamin Graham
1.3. The Intelligent Investor by Benjamin Graham
2. Understanding Wall Street pxiv [dig deeper]
https://investopedia.com [ for glossary]
3.The Theory of Investment Value
4. A Random Walk Down Wall Street: The Time-Tested Strategy for Successful Investing
5. The Only Investment Guide You'll Ever Need, eAudio
6. The Outsiders: Eight Unconventional CEOs and Their Radically Rational Blueprint for Success by William N. Thorndike Jr.
7. Capitalism without Capital: The Rise of the Intangible Economy by Jonathan Haskel
KCLS search books:
1. Put Your Money Where Your Life Is: How to Invest Locally Using Self-Directed IRAs and Solo 401(k)s
2. Personal Finance in Your 20s & 30s For Dummies (For Dummies.
3. The Everything Personal Finance in Your 20s & 30s Book: Eliminate your debt, manage your money, and build for an exciting financial future
July 22, 2025
Incredibly insightful and relevant
March 18, 2024
«Value 3.0» mindset; key is to consider the real earnings power instead of the actual earnings.
May 15, 2025
so relevant but more importantly so digestible
November 13, 2025
Meh - interesting 1,2&3: 👍👍👍
August 24, 2025
1. Tech stocks grow faster. Agree!
2. Here comes valuation 3.0. Tend to agree!
2. Here comes valuation 3.0. Tend to agree!
June 25, 2023
Overall I liked the focus on an alternative way to value a company. It really highlights how current GAAP accounting understates tech-company earnings, comparing mostly physical companies who amortize CapEx spending (say a new store or factory) for growth over years and tech companies growth spending shows up in R&D lines and more in S&M (where a bigger portion is as a growth expense vs that years profits due to greater time values of customers who subscribe ie Netflix or stick with a product (Google, Amazon).
Making adjustments for this can help an invest create a different picture of a companies earnings power and thus value. It's worth reading to understand this view, which could change your outlook as an investor.
I don't agree with the author using this adjusted earnings power 3 years out and then comparing it to a normal P/E ratio based on the last year's earnings. That doesn't make sense, as if that comparison was to work, you would also use the P/E of the companies earnings in 3 years time with today's price, which would be thus lower. A 5% earnings yield on adjusted earnings 3 years (or a few years out) isn't 5% earnings power now, so not comparable with the market average valuation or bonds today.
As a Tesla investor, I would also like to highlight the small piece about being against Musk's share package in 2018. Whilst it may add up to 12% dilution of shares as stated by the author, this was only if all targets were achieved and over a potential 10 year period (might be off by a few years here). If all targets took 10 years say, that would instead be 1-1.5% dilution a year (still just for his own pay packet) but the targets included the market cap going from circa $50bill to $650bill. Who wouldn't invest in the shares on the basis of they might get diluted 12%, if the market value would need to go up 13x? Sure, it was a extremely excessive package given he already had such a large amount of shares, but it was aligned with shareholder's interest in that way and that of his employees who also all get shares. He didn't get anything if revenue, EBIT and market cap didn't get to the first target. Jump ahead to today, market cap $800bill+
Making adjustments for this can help an invest create a different picture of a companies earnings power and thus value. It's worth reading to understand this view, which could change your outlook as an investor.
I don't agree with the author using this adjusted earnings power 3 years out and then comparing it to a normal P/E ratio based on the last year's earnings. That doesn't make sense, as if that comparison was to work, you would also use the P/E of the companies earnings in 3 years time with today's price, which would be thus lower. A 5% earnings yield on adjusted earnings 3 years (or a few years out) isn't 5% earnings power now, so not comparable with the market average valuation or bonds today.
As a Tesla investor, I would also like to highlight the small piece about being against Musk's share package in 2018. Whilst it may add up to 12% dilution of shares as stated by the author, this was only if all targets were achieved and over a potential 10 year period (might be off by a few years here). If all targets took 10 years say, that would instead be 1-1.5% dilution a year (still just for his own pay packet) but the targets included the market cap going from circa $50bill to $650bill. Who wouldn't invest in the shares on the basis of they might get diluted 12%, if the market value would need to go up 13x? Sure, it was a extremely excessive package given he already had such a large amount of shares, but it was aligned with shareholder's interest in that way and that of his employees who also all get shares. He didn't get anything if revenue, EBIT and market cap didn't get to the first target. Jump ahead to today, market cap $800bill+
This entire review has been hidden because of spoilers.
April 14, 2024
The author provided some good traits to identify strong businesses but at what point do you trim or sell completely? The ending left me confused - he cites Bezos predicting “Amazon will fail” and “Value 3.0 will become obsolete (his investing framework) and one day it will be time for Value 4.0”
As a reader and investor it left me with “Okay so now what?”
I mostly enjoyed reading it but didn’t think there was much weight behind it.
As a reader and investor it left me with “Okay so now what?”
I mostly enjoyed reading it but didn’t think there was much weight behind it.
April 24, 2024
Had me in the first half not going to lie! 📈
Only when he mentioned bitcoin it was down from there…📉
Overall a decent book, great insights into the power of tech, but a lot of repetition from the previous value/growth literature.
Only when he mentioned bitcoin it was down from there…📉
Overall a decent book, great insights into the power of tech, but a lot of repetition from the previous value/growth literature.
December 30, 2024
An absolutely must read, especially you know to some extend value investing from Warren Buffet.
The book is both theoretical and practical that I had to finish it within 2 days, and got me thinking in quite a few times.
The book is both theoretical and practical that I had to finish it within 2 days, and got me thinking in quite a few times.
August 27, 2022
This is a very good and concise book on investing frameworks for evaluating technology companies. It doesn’t provide any new tools on how to access such investments (maybe it’s only flaw), but it conveniently consolidates all that is relevant on the topic in an articulate and coherent form while keeping true to a value philosophy. It also provides simple and direct questions to evaluate if a business check the desirable characteristics for a good investment.
Seessel makes a very strong argument for tech companies: running on top of the Moore’s Law, that generates outstanding increases in processing capacity every few years, tech companies can generate wildly innovative solutions to problems it seemed impossible to tackle a few years ago. More so, such companies can scale very fast, requiring a relatively small capital investment. Once they reach such stage, network effects and high switching costs make them virtually unassailable (and very profitable). The author then reconciliates this with paying reasonable prices for such growth and value generation, using some elegant (but simple) solutions to parse through the data and really understand how these businesses generate profits. His adoption of Professor Baruch Lev critique on how current accounting standards are inadequate to explain modern business dynamics frames the narrative very well.
Overall, I applaud the author on the courage to tackle such a topic a showing that value investing and technology can and should coexist. Often adherents of such approach are extremely dogmatic and simply refuse to move on with times and learn new ways of framing reality. While this has served well for a long time, it’s undeniable that the largest wealth creation in the last few decades came from a sector usually shunned by such community. Mr. Seessel showed persuasively how this should not be so anymore.
Seessel makes a very strong argument for tech companies: running on top of the Moore’s Law, that generates outstanding increases in processing capacity every few years, tech companies can generate wildly innovative solutions to problems it seemed impossible to tackle a few years ago. More so, such companies can scale very fast, requiring a relatively small capital investment. Once they reach such stage, network effects and high switching costs make them virtually unassailable (and very profitable). The author then reconciliates this with paying reasonable prices for such growth and value generation, using some elegant (but simple) solutions to parse through the data and really understand how these businesses generate profits. His adoption of Professor Baruch Lev critique on how current accounting standards are inadequate to explain modern business dynamics frames the narrative very well.
Overall, I applaud the author on the courage to tackle such a topic a showing that value investing and technology can and should coexist. Often adherents of such approach are extremely dogmatic and simply refuse to move on with times and learn new ways of framing reality. While this has served well for a long time, it’s undeniable that the largest wealth creation in the last few decades came from a sector usually shunned by such community. Mr. Seessel showed persuasively how this should not be so anymore.
August 30, 2024
the wild Amazone
Not Very Useful
I did not learn much from this book. It talks about Stock analysis: Ben Graham Value 1.0, Warren Buffet Value 2.0, Adam Sessell Value 3.0 but does not provide many examples or sufficient details to understand the analysis process.
It claims that because software companies do not have significant physical assets that GAAP accounting practices, which force R&D and advertising to be written off immediately, distort the PE ratio such that comparisons based on it unfairly penalize these companies.
To illustrate this penalty it compares Campbell Soup to Intuit and makes adjustments to compensate. The resulting Adjusted P/E ratio for Intuit (from X43 to X20) matching Campbells Soup. I would have preferred to have the explicit math shown and not need to guess how the calculations were made.
There was a much earlier Book by Michael Murphy, Every Investors guide to High Tech Stocks & Mutual Funds (1998) that provided explicit rules that could be used to screen stock fundamentals to identify potential High Growth Winners. How to pick stocks for a deeper look is completely missing from this book. It lists many high tech stocks that passed its screen Some stocks are gone. Others such as Apple, Amazon, and Google did not make the list.
Before the market crashed it was easy to pick winners since almost everything went up. Afterwards, tech stocks lost most if not all of their gains. The market switched to value stocks for a while then went back to Growth. In 2022 it favored Value Stocks.
It would be really useful if we could examine Adams track record.
Not Very Useful
I did not learn much from this book. It talks about Stock analysis: Ben Graham Value 1.0, Warren Buffet Value 2.0, Adam Sessell Value 3.0 but does not provide many examples or sufficient details to understand the analysis process.
It claims that because software companies do not have significant physical assets that GAAP accounting practices, which force R&D and advertising to be written off immediately, distort the PE ratio such that comparisons based on it unfairly penalize these companies.
To illustrate this penalty it compares Campbell Soup to Intuit and makes adjustments to compensate. The resulting Adjusted P/E ratio for Intuit (from X43 to X20) matching Campbells Soup. I would have preferred to have the explicit math shown and not need to guess how the calculations were made.
There was a much earlier Book by Michael Murphy, Every Investors guide to High Tech Stocks & Mutual Funds (1998) that provided explicit rules that could be used to screen stock fundamentals to identify potential High Growth Winners. How to pick stocks for a deeper look is completely missing from this book. It lists many high tech stocks that passed its screen Some stocks are gone. Others such as Apple, Amazon, and Google did not make the list.
Before the market crashed it was easy to pick winners since almost everything went up. Afterwards, tech stocks lost most if not all of their gains. The market switched to value stocks for a while then went back to Growth. In 2022 it favored Value Stocks.
It would be really useful if we could examine Adams track record.
December 16, 2025
Why did value investors miss investing in the Magnificent 7? Primarily because these companies always looked expensive on traditional, short-term value investing metrics. According to GAAP, all R&D and sales & marketing costs are expensed. These companies were investing heavily in the short-term to take advantage of long-term growth opportunities.
Author adjusts earnings to determine ‘earnings power’. Estimate revenue three years out and what underlying margins should be at maturity.
For Amazon as an example, the multiple on reported 2019 earnings was 87x, but the multiple on 2022’s estimated earnings power was 15x.
BMP checklist (Business Quality, Management, Price).
Characteristics of business quality: a low market share, of a large and growing market, with a clearly identifiable competitive advantage that will allow the company to grow sales and profits for years to come.
Management: do managers think and act like owners. Do they understand what drives business value.
Price: not want to pay 20x earnings power.
Buffett: ‘the key to investing is not assessing how much an industry is going to affect society, or how much it will grow, but rather determining the competitive advantage of any given company, and above all, the durability of that advantage.’ [Fortune article]
Ben Graham’s real legacy is not that he gave us a specific discipline; it’s that he introduced investors to the idea of discipline itself. The importance of discipline and rigor remains constant, but its specifics should remain fluid and flexible. They should change as the world changes.
Author adjusts earnings to determine ‘earnings power’. Estimate revenue three years out and what underlying margins should be at maturity.
For Amazon as an example, the multiple on reported 2019 earnings was 87x, but the multiple on 2022’s estimated earnings power was 15x.
BMP checklist (Business Quality, Management, Price).
Characteristics of business quality: a low market share, of a large and growing market, with a clearly identifiable competitive advantage that will allow the company to grow sales and profits for years to come.
Management: do managers think and act like owners. Do they understand what drives business value.
Price: not want to pay 20x earnings power.
Buffett: ‘the key to investing is not assessing how much an industry is going to affect society, or how much it will grow, but rather determining the competitive advantage of any given company, and above all, the durability of that advantage.’ [Fortune article]
Ben Graham’s real legacy is not that he gave us a specific discipline; it’s that he introduced investors to the idea of discipline itself. The importance of discipline and rigor remains constant, but its specifics should remain fluid and flexible. They should change as the world changes.
January 29, 2024
Where the Money Is" by Adam Sesssel offers a thought-provoking take on the world of value investing, specifically in the context of technology stocks. While not without its criticisms, this book provides valuable insights into why traditional value investing strategies often fall short when applied to the tech sector.
Sesssel's central argument revolves around the idea that value investors frequently overlook promising tech stocks by fixating on metrics like price-to-earnings ratios (P/E ratios) and emphasizing the importance of cheap, undervalued stocks. He contends that these metrics may not accurately reflect the true value of technology companies due to their unique business models, growth potential, and financial characteristics.
One of the book's strengths lies in its ability to shed light on why tech stocks often appear expensive from a value investor's perspective. Sesssel meticulously dissects and scrutinizes the financial statements of tech companies, challenging conventional wisdom and suggesting alternative methods for assessing their true value. While some readers may not fully agree with Sesssel's approaches and calculations, they undeniably provoke critical thinking and provide a new lens through which to view tech stocks.
Sesssel's central argument revolves around the idea that value investors frequently overlook promising tech stocks by fixating on metrics like price-to-earnings ratios (P/E ratios) and emphasizing the importance of cheap, undervalued stocks. He contends that these metrics may not accurately reflect the true value of technology companies due to their unique business models, growth potential, and financial characteristics.
One of the book's strengths lies in its ability to shed light on why tech stocks often appear expensive from a value investor's perspective. Sesssel meticulously dissects and scrutinizes the financial statements of tech companies, challenging conventional wisdom and suggesting alternative methods for assessing their true value. While some readers may not fully agree with Sesssel's approaches and calculations, they undeniably provoke critical thinking and provide a new lens through which to view tech stocks.
January 1, 2025
As a value investing follower, I find the new era (3.0 Value) of this book fascinating. I give it a 4 out of 5 as gives me a fresh look, but not so new. There are a few notions:
1. The four most dangerous words are "This time is different", but the ten most dangerous words are "The four most dangerous words are "This time is different". Things will change, about 20% compared to last time I guess. Investors and CEOs should accept that change, and adapt.
2. Investors should change their framework in the modern age, just like Buffett 2.0 evolved from Graham 1.0. You should change the way that you approach tech companies, especially the "owner earnings".
3. Something should never change: Durable company, great potential market, market share (lower the better), management (good ROC), price paid. Of course, you should know the business and improve your circle of competence.
4. For investment outside of the U.S., for instance in Vietnam, I think investors don't have the chance to buy strong public tech companies, but the book also provides the framework for non-tech: (1) is it tech proof, (2) tech improve the business, (3) serve the area that left behind by the tech. Btw, I think people still go to the hospital after AI's revolution.
1. The four most dangerous words are "This time is different", but the ten most dangerous words are "The four most dangerous words are "This time is different". Things will change, about 20% compared to last time I guess. Investors and CEOs should accept that change, and adapt.
2. Investors should change their framework in the modern age, just like Buffett 2.0 evolved from Graham 1.0. You should change the way that you approach tech companies, especially the "owner earnings".
3. Something should never change: Durable company, great potential market, market share (lower the better), management (good ROC), price paid. Of course, you should know the business and improve your circle of competence.
4. For investment outside of the U.S., for instance in Vietnam, I think investors don't have the chance to buy strong public tech companies, but the book also provides the framework for non-tech: (1) is it tech proof, (2) tech improve the business, (3) serve the area that left behind by the tech. Btw, I think people still go to the hospital after AI's revolution.
April 23, 2024
Decent book. However, I think it could have been MUCH shorter and I felt like the author was trying to hit a word count in the last few chapters. The main argument that GAAP rules excessively penalize technology firms’ growth “capex” in the form of R&D by requiring immediate expensing is fair. FASB should probably revisit the rules and add some nuance to help financial reporting more closely mirror economic reality.
Some of the tips and tricks to analyze tech companies the author uses will be useful in my own practice. Most of the content on how to invest successfully is good, but not new by any means.
Some of the tips and tricks to analyze tech companies the author uses will be useful in my own practice. Most of the content on how to invest successfully is good, but not new by any means.
August 13, 2022
Fun book with great premise but some speculation
Great concept but poor execution. I like the authors idea of value 3.0 and I get what he is trying to get with it but he goes with it too far. I agree that Gaap is doing unjustice to tech companies because of R&D and SGA but you cant apply it to every tech company. Amazon example is really good and makes sense but to speculate on Alphabet margins because Alibaba and Facebook have different margins makes 0 point. All in all solid book on value investing with some speculative examples.
Great concept but poor execution. I like the authors idea of value 3.0 and I get what he is trying to get with it but he goes with it too far. I agree that Gaap is doing unjustice to tech companies because of R&D and SGA but you cant apply it to every tech company. Amazon example is really good and makes sense but to speculate on Alphabet margins because Alibaba and Facebook have different margins makes 0 point. All in all solid book on value investing with some speculative examples.
January 8, 2023
An interesting book that looks at how to approach the new age tech companies. Initial chapters on Graham, Buffett, Tom Murphy etc. can be easily skipped by seasoned value investors. However, it is a nice summary for new investors looking at pursuing value investing discipline. The way to approach new tech companies from a value perspective gives a few interesting insights. However nothing much from a valuation perspective is offered except mentioning that the price to adjusted earnings shouldn’t exceed 20x.
This entire review has been hidden because of spoilers.
July 20, 2023
One of the more interesting investing books that I've read in a long time. The author makes a compelling argument that GAAP accounting practices incorrectly values Tech companies because it does not allow for R&D expenditures to be amortized the same way that brick and mortar companies can expense investment in equipment and maintenance. Once we value Tech companies correctly then we discover a good many value investments. This is important because the U.S. economy is quickly shifting to a tech economy.
July 2, 2025
Where The Money Is by Adam Seessel is a clear and engaging introduction to value investing, especially as applied to modern tech companies. Seessel adapts traditional principles to firms like Amazon and Meta, emphasizing business quality and long-term returns over outdated metrics. While parts of the book feel like a pitch for his own portfolio, the real-world case studies still add value. It’s a worthwhile read for investors seeking a modern lens on classic investing ideas.
November 11, 2022
Great text for someone who is familiar with value investing already and maybe has felt challenged in applying those principles when making investment choices today. Seessel updates the work of Graham and Buffett with his value 3.0 framework. The book is a great read for beginners (no posh finance language here) and those who may be more well-read alike.
October 20, 2023
This book is written by someone who I believe is very passionate about the market and provides clear points that are solid. There is a lot to learn. There are great references to amazing investors who each have their own wisdom to share, just as Adam Seessel has for the modern age of the stock market.
Reddit, as a whole, can be summed as "...an orgy of irrationality." :)
Reddit, as a whole, can be summed as "...an orgy of irrationality." :)
October 29, 2025
Clearly explains the investing frameworks and foundational insights from Ben Graham to contemporary market. The book gives you basic knowledge and confidence to pursuit further investing wisdoms should you wish to do so. I gained a lot of confidence after reading this book when investing in tech companies. Highly recommended.
Displaying 1 - 30 of 77 reviews