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The Little Book That Builds Wealth: The Knockout Formula for Finding Great Investments (Recorded Books Presents) Audio CD – Audiobook, January 1, 2008
by
Pat Dorsey
(Author),
Steve Blane
(Reader)
Pat Dorsey
(Author)
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Book 2 of 29: Little Books. Big Profits
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LanguageEnglish
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PublisherRecorded Books
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Publication dateJanuary 1, 2008
A new pulse-raising crime thriller
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Page 1 of 1 Start overPage 1 of 1
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- The Little Book of Value InvestingHardcover
- The Little Book of Behavioral Investing: How not to be your own worst enemyHardcover
- The Little Book That Still Beats the MarketHardcover
- The Little Book of Valuation: How to Value a Company, Pick a Stock and ProfitHardcover
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Product details
- ASIN : 1436198011
- Publisher : Recorded Books (January 1, 2008)
- Language : English
- Item Weight : 10.4 ounces
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Best Sellers Rank:
#6,380,891 in Books (See Top 100 in Books)
- #94,070 in Books on CD
- Customer Reviews:
Customer reviews
4.5 out of 5 stars
4.5 out of 5
239 global ratings
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Top reviews from the United States
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Reviewed in the United States on July 18, 2017
Verified Purchase
Great introduction to the determining the valuation of a company. I hadn't read anything with Morningstar before so the "moat" concept was foreign to me going into this book. However it was very easy to read, and we picked pick up the concept pretty quickly.
3 people found this helpful
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Reviewed in the United States on February 5, 2009
Verified Purchase
If Michael Porter's "Competitive Advantage" can be seen as the first book that conclusively illustrates "managerial" competitive advantage, Pat Dorsey's "The Little Book That Builds Wealth" can be seen as the first book that conclusively illustrates "investing" competitive advantage (I do not regard Warren Buffett's annual reports as a book). Many people invest by reacting, "My brother-in-law recommended it" or "I read about it in Money". It's also easy to get distracted by daily price gyrations and pundits who pontificate about short term market swings. Far better to have a conceptual anchor to help you evaluate stocks and build a rational portfolio. That's when investing competitive advantage, what Warren Buffett calls economic moats are invaluable. This book primarily deals with businesses that can generate above-average profit for many years, despite intense and constant competitive threats. Return on capital is the best benchmark of a company's profitability. It measures how effectively a company uses all of its assets - people, factories, investments - to make money for shareholders. Companies with strong competitive advantage can regularly post return on capital at 20+ percent, which is a rate of return very few money managers can achieve over long periods of time. This book provides a sensible framework for identifying companies that can sustain high return on capital. It tells the reader how to look for durable competitive advantage in choosing equities. The 4 sources of competitive advantage are: (1). Intangible assets; (2). Switching costs; (3). Network effects and (4). Cost advantage. These 4 sources of competitive advantage are elaborated throughout the book. Digest this book and you will develop a solid foundation for making smart investing decisions.
10 people found this helpful
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4.0 out of 5 stars
so if you're already familiar with them and their principles reading it might be a waste of time
Reviewed in the United States on May 17, 2018Verified Purchase
It's essentially a big advertisement for Morningstar, so if you're already familiar with them and their principles reading it might be a waste of time. Still, the concepts are intriguing and should help broaden your perspective of the business world.
One person found this helpful
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Reviewed in the United States on February 17, 2017
Verified Purchase
If you want to understand moats in good detail and common false investing theories/investing, THIS IS IT.
Another great thing he dispels with respect to common investing theory is the importance of management. Even an idiot in a good business can generate cash but God himself as Chairman and CEO can't if he's in a fundamentally horrible business.
Another great thing he dispels with respect to common investing theory is the importance of management. Even an idiot in a good business can generate cash but God himself as Chairman and CEO can't if he's in a fundamentally horrible business.
2 people found this helpful
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Reviewed in the United States on January 1, 2021
Verified Purchase
The best summary about Mosts!!!
Will definitely influence my investment strategy.
Easy to read and full of good examples!!!
Thank you very much!!!
Will definitely influence my investment strategy.
Easy to read and full of good examples!!!
Thank you very much!!!
Reviewed in the United States on November 17, 2018
Verified Purchase
This book gives you an excellent framework to choose not only how to invest in companies, but choosing stable companies to work for. Very good.
Reviewed in the United States on February 8, 2020
Verified Purchase
Good source of finance information
Reviewed in the United States on September 22, 2019
Verified Purchase
Author has condensed the complicated steps into a few chapters. It’s Recommended for a re-read and practice. It’s more like a practical book for different level of investors to walk out of the running maze of the investment world.
Top reviews from other countries

Avid Reader
5.0 out of 5 stars
Essential reading for a Buffett wannabe
Reviewed in the United Kingdom on December 18, 2016Verified Purchase
I like the "Little Book" series, the books are content-heavy and fluff-light. This one gives us an excellent description of Warren Buffett's concept of a "moat" around a business, which gives it a solid defence mechanism against competitors. In turn, this gives it a competitive advantage. And if we're going to invest in companies for the long term, knowing this is going to give us an advantage too.
Good companion books for investing like Warren Buffett are:
Invest Like Warren Buffett: Powerful Strategies for Building Wealth
Invest With The House: Hacking The Top Hedge Funds
Good companion books for investing like Warren Buffett are:
Invest Like Warren Buffett: Powerful Strategies for Building Wealth
Invest With The House: Hacking The Top Hedge Funds
2 people found this helpful
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AJS101
4.0 out of 5 stars
Good overview
Reviewed in the United Kingdom on March 18, 2015Verified Purchase
Good introduction to how some companies generate above market returns over long periods of time. However, having read the book, I'm not sure if I learnt enough to look at a company and determine how strong it's moat is or how long it will last.
2 people found this helpful
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Mr J P Penna
5.0 out of 5 stars
Good book, part of a collection of books by great authors
Reviewed in the United Kingdom on September 17, 2017Verified Purchase
Not a bad book, part of a collection of others that Im reading. On its own only tells part of the story , need to read books by other authors
One person found this helpful
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Common sense
5.0 out of 5 stars
simple yet powerful
Reviewed in the United Kingdom on March 29, 2014Verified Purchase
A nice presentation of some well known ideas. But a nice reminder of what is important and what is not.
One person found this helpful
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Graham
5.0 out of 5 stars
Five Stars
Reviewed in the United Kingdom on April 21, 2015Verified Purchase
Fantastic book!
One person found this helpful
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