Comments on: The Intelligent Investor: Things to Consider About Per-Share Earnings

By: Ruchika

Ruchika — Sun, 04 Jan 2009 10:24:39 +0000

10 seconds rule is enough to stop 90% of spending. And prompt the person to think about investing the surplus.

By: Rob G.

Rob G. — Sat, 03 Jan 2009 06:49:52 +0000

It is my litmus test for anybody in the investment field.read it follow it and you really do not need so called professional investment advice.

By: Paul C

Paul C — Fri, 02 Jan 2009 19:12:43 +0000

Graham’s treatment of the fear and greed of people is perfect. People are just as greedy in bull markets and terrified in bear markets as they have been in the past. Much of Graham’s writings truly do sound as if they were written today. This book really prepares you to be levelheaded in times like today.

You’re absolutely right about averaging out EPS over a long period of time. On a year to year basis though, I think revenue and operating income are much stronger numbers to consider. It is much harder to fake those than it is to fake EPS.

By: Chris

Chris — Fri, 02 Jan 2009 18:07:15 +0000

I read an article recently in a financial magazine discussing inflation of per share earnings over recent decades. If I remember correctly (wish I could’ve found the article) it was comparing net earnings to another number, maybe operating earnings?
Anyway, the point was that reported net has been a steadily growing % of that number – making one think that companies are finding more and more ways to inflate their reported net, making the figure ever more suspect.

By: Jesse

Jesse — Fri, 02 Jan 2009 17:01:30 +0000

Its amazing how much things DON’T change. Just read through Atlas Shrugged and compare it to society today…

By: Dan Massicotte

Dan Massicotte — Fri, 02 Jan 2009 15:52:15 +0000

This reminds me of those accounting courses. The notes do contain at times some really shocking news that could be to the detriment of any investor.

By: Jules

Jules — Fri, 02 Jan 2009 15:51:01 +0000

What you say about Graham’s book is also true about my personal favorite book, “On Food and Cooking”, by Harold McGee. You can tell that the science is 25 years late, but the principles are still the same.

By: Andy

Andy — Fri, 02 Jan 2009 15:08:44 +0000

Don’t fall prey to those who post just to get people to look at their web site. Good example is “Curt.” (You can tell who they are if ther name is underlined). Your site is far too good to be trampled by self-serving bloggers, Trent. Keep up the good work.

By: Curt

Curt — Fri, 02 Jan 2009 14:34:12 +0000

I see this book talked about so much lately, I’m going to have to read it.

By: Mike

Mike — Fri, 02 Jan 2009 14:19:25 +0000

“If a thirty-five year old book can be so prescient, one can’t help but wonder what value all of the modern information flood has when it comes to investing.”

Agreed! The harmful effect of the financial media is one thing that I become more and more convinced of as I spend more time in this field.

(Not that it’s all bad of course, just that there’s too much of it, and if often focuses on the wrong things.)