The Entrepreneurial INVESTOR
Paul Orfalea is a revolutionary entrepreneur widely renowned for his success in growing Kinko′s from a single copy shop to an industry leader with 1,100 branches worldwide. Less well known is his long history of successful investing, which dates back to his early teens, when Orfalea would skip school to spend afternoons at the office of his father′s stockbroker. In 2000, Orfalea and Lance Helfert cofounded West Coast Asset Management (WCAM) on the same principles of value investing that Warren Buffett used to become one of the world′s greatest investors.
Now, in The Entrepreneurial Investor, Orfalea along with Lance Helfert, Atticus Lowe, and Dean Zatkowsky reveal how you can use their version of this approach to achieve unparalleled success in your everyday investment endeavors.
Through solid examples and a light narrative, Orfalea and company skillfully explore the essence of the entrepreneurial investor, which includes balancing the art and science of this discipline, and viewing investing itself as a business. Along the way, they also examine how the elements of focus, opportunism, and involvement can improve your overall investment results.
Divided into four comprehensive parts, this reliable resource will put you in a better position to make profitable investment decisions. Some of the issues addressed include:
- Think like an Owner: The Art of the Entrepreneurial Investor covers WCAM′s investing philosophy and some of the context and chatter that can cloud one′s thinking.
- Companies Worth Owning discusses the heart of entrepreneurial investing choosing to invest in individual companies rather than in mutual funds or "the market".
- The Owners′ Manual highlights some of the important information available to investors from the advice shouted on television to annual reports, financial statements, and the ever–ambiguous subject of inventory.
- What′s It Worth to Me distinguishes investing from speculating and helps you understand the actual value of a company, so you can act when the price is low enough for buying or high enough for selling.
Filled with in–depth insights and practical advice, The Entrepreneurial Investor will inspire you to treat investing like a business and to think of yourself as an owner. Once you realize that making money is your business, you′ll be a better investor for it.
Forewordby Neil Cavuto vii
Introduction: Is Investing an Art or a Science? xi
Part I: Think Like an Owner: The Art of the Entrepreneurial Investor 1
Chapter 1 Eyes Believe What They See; Ears
Believe Others 3
Chapter 2 Others Irrationality Is Your Opportunity 9
Chapter 3 Dirty Harry s Investment Philosophy 13
Chapter 4 Adversity in Diversity: Portfolio
Chapter 5 Just Buy the Best (Which Does Not
Include Most Mutual Funds) 21
Chapter 6 Inspirational Figures: Benjamin Graham 27
Part II: Companies Worth Owning 33
Chapter 7 Who Really Manages The Brand?
(Hint: It s Not the Company) 35
Chapter 8 What Makes You So Special? 39
Chapter 9 Company Culture Is More Important than Ever 45
Chapter 10 Bogie & Bergman Explain
Elasticity of Demand 51
Chapter 11 Red Flags and Roaches 57
Chapter 12 Inspirational Figures: David Packard 65
Part III: The Owner s Manual 71
Chapter 13 Televised Advice: No Worse than
Drilling Your Own Teeth 73
Chapter 14 Lies, Damned Lies, and
Financial Statements 79
Chapter 15 How to Be an Annual Report Detective 85
Chapter 16 How Inventory Can Skew the Financials 91
Chapter 17 Great First Impressions: 10 Signs of a Strong Company 99
Chapter 18 Inspirational Figures: Bernard Baruch 105
Part IV: What s It Worth To Me? 111
Chapter 19 The ABCs of Market Ineffi ciency 113
Chapter 20 Wait Till the Moon Is Full 119
Chapter 21 Today s Price for Tomorrow s Growth: The X Factor 123
Chapter 22 The Long View, and Why Women Are Better Investors 129
Chapter 23 Intrinsic Value: Putting it All Together 139
Chapter 24 Inspirational Figures: Howard Hughes 147
Epilogue: The Fortune Cookie That Ate Wall Street 153
About the Authors 157
Notice and Disclosures 159