Big Money Thinks Small: Biases, Blind Spots, and Smarter Investing by Joel TillinghastMy rating: 3 of 5 stars
About 2/3 of the way through listening to this audiobook, I thought about what I had learned. The author talks about evaluating companies and their stocks, generally using a great deal of research and spreadsheet work. As you listen to the “case studies” of the companies that he has evaluated and how he architected the evaluations, you are left with the feeling that it takes a special person to do this, one that is single-mindedly dedicated to tracing down the numbers behind the numbers, the forecasts that the company uses but don’t repeat to analysts, and information from sometimes obscure sources. While I originally assumed this was a how-to book, it is far from it. It was more a “here’s why you leave this to professionals” book that is pretending to be a how-to book. I also noticed, about 2/3 of the way through the book, that this would be a perfect book to explain why active fund management could be beneficial compared to index funds in raising return or lowering risk. And then, the author flips a switch and calls this out in the remainder of the book. As a defense of active fund investing, this does a good job. The author writes in a friendly way, and you understand that through his focus he’s able to tell stories about stocks and companies based on evaluation of numbers that are enlightening. What he doesn’t do is give you the belief that you can do these evaluations yourself without a lot of experience. Well written.
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