Big Money Thinks Small: Biases, Blind Spots, and Smarter Investing (Columbia Business School Publishing)
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Market mistakes to avoid: “Written for investors at all levels…[a] practical, no-nonsense guide.”—Publishers Weekly
One of Money Week’s Five Best Books of the Year
Investors are tempted daily by misleading or incomplete information. They may make a lucky bet, realize a sizable profit, and find themselves full of confidence. Their next high-stakes gamble might backfire, not only hitting them in the balance sheet but also taking a mental and emotional toll. Even veteran investors can be caught off guard: a news item may suddenly cause havoc for an industry they’ve invested in; crowd mentality among fellow investors may skew the market; a CEO may turn out to be unprepared to effectively guide a company. How can one stay focused in such a volatile world? If you can’t trust your past successes to plan and predict, how can you avoid risky situations in the future?
Patience and methodical planning will pay far greater dividends than flashy investments. In Big Money Thinks Small, veteran fund manager Joel Tillinghast shows investors how to avoid making these mistakes. He offers a set of simple but crucial steps to successful investing, including:
· Know yourself, how you arrive at decisions, and how you might be susceptible to self-deception
· Make decisions based on your own expertise, and do not invest in what you don’t understand
· Select only trustworthy and capable colleagues and collaborators
· Learn how to identify and avoid investments with inherent flaws
· Always search for bargains, and never forget that the first responsibility of an investor is to identify mispriced stocks
ASIN : B0743JNFBZ
Publisher : Columbia Business School Publishing (August 15, 2017)
Publication date : August 15, 2017
Language : English
File size : 888 KB
Text-to-Speech : Enabled
Screen Reader : Supported
Enhanced typesetting : Enabled
X-Ray : Enabled
Word Wise : Enabled
Print length : 379 pages
Customers say
Customers find the book has good nuggets of wisdom, brilliant insights, and ideas. They describe it as a good, brilliant read with well-chosen stories. Readers also appreciate the references to Warren Buffet.
AI-generated from the text of customer reviews
13 reviews for Big Money Thinks Small: Biases, Blind Spots, and Smarter Investing (Columbia Business School Publishing)
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Hui J Chen –
this book belongs to every value investorâs bookshelf
This book absolutely belongs to every value investorâs bookshelf . I need to read it again and again. The author not only gave plenty of investing tips but also ample real life market examples
Arty Kessler –
Good to read
Good to read. Let’s you see how the author works on investing ideas and how much research goes into his final decisions. Chapters are concise and are easily accessible…written well.
euvlithography –
an investing book that will stand the test of time
In a world where the media and popular culture confuse investing with speculation and investors face a continuous barrage of frenetic chatter, this book is a reminder of what investing at its best should be–methodical, sensible, and not all that sexy.What’s great about this book is that it doesn’t have to be read straight through in one sitting but can be stopped and started. Where ever you happen to open it up it’s almost certain that within a paragraph you will find a pithy line that you want to underline and remember. The author’s voice is also pretty hilarious once you are tuned into it and I think this may be the first finance book that’s actually made me laugh out loud. The author also acknowledges human nature in investing in a way that I really appreciated–it’s not a boring behavioral finance book, but much more human. The lessons imparted in the book are timeless and I think it will be as relevant over the coming decades as they feel today.
Monty –
Brilliant. Maybe an instant classic
Brilliant. Maybe an instant classic. A successful mutual fund manager examines the facets of investment risk. His advice is common sense: think rationally and long term, know what you own, invest with capable and honest people, look for sustainable businesses, and buy stocks for less than their intrinsic value. Unusually and very helpfully, this book explores HOW you will know you’ve invested with a bad guy or in a business that isn’t sustainable. Key points are illustrated with well-chosen, often funny, stories. Tillinghast considers a variety of theories skeptically, and shows their weakness; he would clearly prefer to be generally right rather than precisely wrong. Overall this is a very readable book, but you do need to know the basics of accounting. Loved the epigrams.
nonreviewer –
He is a very smart investor. The book has 3 or 4 very …
He is a very smart investor. The book has 3 or 4 very good chapters but way too many on things like different sectors- like what to avoid. He runs the low price fund so I want to hear about “Big Money Thinks Small” not the lame energy sector etc.
Maureen –
Investing, Speculating, and Gambling
I just finished a great new book by Joel Tillinghast, a thirty-six-year veteran of the investments industry and the manager of the Fidelity Low-Priced Stock Fund since 1989.Joel makes a great distinction between investing, speculating, and gambling that really resonated with me.  I feel you can’t really invest in the current market, given elevated valuations due to Central Bank shenanigans.Joel defines an investment as “the product of thorough research that indicates that capital is broadly secure and an adequate return should be earned”. Does this definition match a market that issues 100-year Austrian Bonds at a 2% yield?The best you can hope for in this market is to speculate successfully, meaning you must use your thorough research to make reasoned guesses about share prices, commodity prices, and crowd psychology.  Since nothing is undervalued, there are no Margins of Safety right now.If you don’t do any research, and just invest blindly in this market, you are gambling – and I would suggest, most passive investors are doing just that right now.
David D –
Guide for Value Investers
An engaging review of value investing principles for investors in individual stocks, with brief discussions of index fund investing. Provides recent examples of various relevant topics for stock analysis and realistic discussion of discount rate assumptions. In addition, the book provides insight into behavioral factors that influence stock analysts and business management.
Floridasittingduck –
What a great book. It takes a bit of concentration but …
What a great book. It takes a bit of concentration but by the end you will get the point. I went out and bought the Joel’s fund right away in a small bite and as soon as we get a pull back I will take a larger piece. He says as do others that his methodology works poorly at the end of a bull market. I think we are there.
TheGoodSir –
ein wirklich gutes Buch, wenn man sich fürs Investieren interessiert.
Jeff –
Best finance book I have read for a couple of years
Andre –
Wow using the free cashflow growth rate as a future growth rate estimate is very conservative Indeed. This book has it all a must read!From mentality – specific methods of valuation. For mentality he urges you to not fall for fcf burning traps. Fcf and net income should be similar if not itâs not sustainable or in some cases provided like valeant FRAUD. The author mainly uses free cashflow yield for a specific method of calculating a companyâs value or what he says â what itâs worthâ in the book he uses UNH. He had a discount rate of 10% for stocks in general at the time he was writing for 2010. UNH free cashflow yield was 8% so he would subtract the free cashflow yield from that. So 10%-8% giving you 2% and 4.1( eps of UNH at the time / 0.02 made UNH undervalued when he bought it. So obviously the higher the yield the cheaper the stock and more valuable the company. Brilliant . A very unique perspective then the usual DCF models you read
V RAVICHANDRAN –
It is an Excellent Book. The author shares plenty of wisdom and experience. Each Chapter has an Idea and the idea is elaborated with examples and the educative lines are outlined in the end. The narrative flows fluently and is well written. There is no deprecating of other forms of investing viz. Momentum Investing, Contrarian Investing or Derivatives or Trading. The Author emphasis that his Circle of Competency is Value Investing and shares his knowledge and experience from the perspective of Value Investing. A worthy read and a valuable addition to any Investor’s Library
Magda –
Good common sense advices. Helps avoiding mistakes.