Martin J. Whitman
1 Disappointment
Whitman is brilliant, but as a writer he suffers from some serious defects. Chief among them is his obsession with proving academics wrong. Rather than write much on how he thinks through and makes real-world investments, he spends most of his ink distinguishing value investing from Efficient Market Theory and Graham-and-Doddism. It gets old, and dull. And he constantly qualifies his statements with "probably", "would seem", and so on, and undermines himself. The writing also utterly lacks any sense of humor. Finally, I was disappointed that Whitman--who is an astute and detail-oriented investor--did not include more case examples, with financials, to show his reasoning and method at work.
His first outing, The Aggressive Conservative Investor, is better in many ways, but is still turgidly written.
Given Whitman's talents, track record and reputation for smarts, this is a real let-down.
2 Odd book - who is it aimed at?
Couple of odd things about this book. First is Whitman's invention of acronyms to refer to simple concepts (such as minority investors) which makes the book more confusing to read than it needs to be. Bigger problem however is it is unclear to me who is supposed to read it. The first 200 pages are a rant against the efficient market hypothesis, investment banker fees and a couple of other topics interspersed with a basic overview of markets. Last 30 pages are an advanced discussion on distressed security investing (one of the author's many talents) and dividend policy.
I was bored for 200 pages & interested for 30. Others would be the other way round. Very odd.
3 Decent
This book has many good insights, but the writing isn't great, and it gets pretty technical at times. A better choice, especially for less sophisticated investors, is Kirk Kazanjian's "Value Investing with the Masters," which features Whitman among a panel of 20 value gurus.
4 Sage Advice for a Fraction of the Price
Mr. Whitman packs an entire course worth of information into just 265 pages. Marty Whitman is reknowned for his frank shareholder letters, in which he often explains very complex investments in an easily understandable terms. If you are a fan of his notorious shareholder letters (as I am), and are interested in taking your understanding of value investing to the next level, then this book is for you. Be forewarned that the book is more in-depth and academic than his letters.
5 Ground-Breaking Author. Blah-Blah Writing Style.
Marty Whitman is one of the "deans" of modern value investing. Unfortunately, I believe he's been tainted by his role at Yales' School of Management. The problem with this book is that he works too hard to make his writing style "academic." As a result, his points are rarely easily communicated to the reader. Despite having attended one of the Nation's leading business schools (much more highly-ranked than Yale's SOM), I often felt that gleaning information from this book was like having my teeth pulled -- painful. If Marty would like, I could easily refer him to a number of other books that communicate much more complicated material in a far easier to understand manner. Perhaps he could use one as model for future editions. However, in spite the writing style, the material is quite useful and insightful. Definately worth the price.
6 Good, if you can understand it
This is a fair book written by an outstanding investor. Marty Whitman has practiced value investing successfully for many years, and his writings draw on his vast experience. However, unlike Buffett, he isn't the most clear author in the world. His writing is a little obtuse, and devoid of examples that would illustrate his points. Nevertheless, if you can make your way through the writing, you will find a lot of extremely useful and interesting information. I would recommend this book, but to understand it the reader should have a good working knowledge of financial terminology and an understanding of other value investing techniques and perspectives. If you read (and understand) some other books on value investing, plus maybe a few of Mr. Whitman's Third Avenue Value Fund shareholder letters, I think you will find this book invaluable.
7 Some Good Points, when you can understand what he is Saying
Parts of this book are good. Whitman does say a few important ideas clearly, but a lot of what he writes is difficult for the lay reader to understand. Maybe you need to be a business major or have an MBA. Whitman does not clearly define alot of the basic terms he uses through the book. When he does give a definition, often the definition is obtuse, wordy and confusing. The tables of financial data and examples are pretty much impossible to follow. Some good ideas here, but I really had to force myself to finish it...
8 A unique perspective
As someone who has read the works of Ben Graham and the letters of Warren Buffett, I can honestly say this book offers some new ideas you are unlikely to find anywhere else. Unlike most investing books that only argue against the efficient market, this book also points out many of the flaws of Graham and Dodd and offers a different method of value investing. It is not intended to be an update of Security Analysis, despite what previous reviews on Amazon may say. The author has over 40 years of Wall Street experience and has also taught at Yale and Columbia. If you want to be exposed to new ideas buy the book. If you just want positive reinforcement of your belief in Ben Graham then this book might leave you shell shocked.
9 Absolutely Great
If you're serious about investing like a "control investor" - KKR, Carl Ichan, Warren Buffett - then this book will really open your eyes. There is a completely different world of security investment than the one that we hear about on TV, read in the papers or even learned from Graham and Dodd. I read this book twice before I could appreciate it fully. The first time it changed my paradigm and the second time I received a priceless education. Thank you Marty. "Safe and cheap" is the way to go. Profits are made on the purchase. Learn how it is done!
10 Good Overview
Whitman's book offers a good introduction and overview of the issues and topics to pay attention to for value investors. He does a fairly good job explaining and clarifying his points. However, sometimes that is overdone and things seem quite repetitive. New value investors should definitely read it. My main disappointment is that there are not too many illustrations, in-depth examples or stories that would have made the book a more interesting and valuable read. This book has its place in today's "pay anything for growth" mentality.
11 The Successor to Graham & Dodd? Please.
I eagerly anticipated reading this so-called successor to Graham & Dodd's Security Analysis after Marty Whitman pronounced it as such last December in an interview with Outstanding Investor Digest. To the serious value investor counting on Whitman to deliver on a standard set by Graham & Dodd, this book is as satisfying as a completed sneeze.
Hmmm, a latter-day Graham & Dodd, written in less than half the writing space...How does he pull it off?! The reason Whitman's book is so brief is the author devotes most of his effort to delivering platitudes; there are few examples, and fewer satisfying ones. It is disturbing that a value investor-professor touting a 'balanced approach' would skimp on text-balancing details like examples, especially since this book is written by a seasoned analyst presumed to be sensitive to the complexity --and thus the potential for confusion-- in the practice of his craft.
This is one field where less is not more. While I would dearly love to find a replacement to my increasingly dated Graham & Dodd, Whitman's book is a displacement. It is a strangely assuming, hugely disappointing work in a field terribly in need of a successor to the less and less approachable standard text, Graham & Dodd's Security Analysis.
12 Safe and cheap
Marty's brand of value investing will appeal to the buy-and-hold investor who wishes to purchase shares in financially sound companies with good quality assets at a discount to their value. This book does not teach "how to do". It teaches "how to think". That is, how to think like a control investor, speculator, management or investment banker, or creditor might. If one can understand the motivations and interests of all of those constituencies who might be involved in a company and the market for its securities, then one may learn to capitalize upon opportunities presented by the market.
This book is the successor to Whitman's superb "The Aggressive Conservative Investor", basically updating that book for the new millenium.
13 If you ever wanted to teach Graham and Dodd a lesson read it
Marty compiles his wisdom, academic knowledge and years of experience working in the financial services sector in his latest book. His approach offerred me an opportunity to truly understand what "value investing" is. If value investors thought Graham and Dodd wrote the key book on this topic, then they should read Marty's book. He has established 'the' way to approach value investing.
14 I laughed, I cried...
I laughed, I cried....I loved it!! Actually I haven't read it yet but I ordered 10 copies and I believe I am going to love it!
