“The Smart Spanish Investor”Is a book in which Miguel de Juan Fernández explains how to invest in the stock market according to the fundamentals of value investing. In Miguel's words:
“The intention of this book is to establish a series of investment concepts and advice for ordinary Spanish, taking into account their main characteristic as a non-financial expert. I hope that, throughout the book, said Spaniard can find enough tools -concept rather than formulas- to be able to decide for himself what type of investment suits him, what type of approach he should have regarding the market and what is the 'base alternative' from which it starts. "
In this article, Eloy Fernández (a new contributor to the blog that you can follow on Twitter asBenjamin Graham and the "Old Testament" of value Investing, a kind of "sequel" to the Spanish of "safety margin.
2-Value vision of risk and strong criticism of the Market Efficiency Hypothesis.
3-In the next "act" he immerses us, in what my opinion is still a quite liberal point of view and I would dare to say that even Austrian, in concepts such as the Gold Standard and its importance, Peel's Law, central banking, inflation and financial repression. It is especially interesting how De Juan is especially critical of the functioning of the system that linked the fatal episodes that led to the 2008 crisis.
4-In this part of the book, De Juan uses his experience in investment banking during the bubble years to explain, and also harshly criticize, the commercialization of certain complex products such as preferred shares, placing special emphasis on the Bankia case.
5-Explanation of the classes of financial products, from fixed income to variable income, stopping in real estate assets.
6-Large Investors. Here he makes a brief mention of those who, in his opinion, are the great investors in history. Graham, Fisher, Castle (As a bastion of Net-Net investment), Klarman, Lynch, etc.
7-Annexes and recommended bibliography.
In summary, a book that covers quite a few topics and that, by wanting to be so complete, is shallow in the separate analysis of each of the topics discussed. But what is clear is that it is written in an entertaining way and with all the honesty in the world since the author does not hesitate to put a sincere and self-critical opinion in front of the reader (we must not forget that De Juan worked for large firms during the bubble years).
Valuation of The Smart Spanish Investor
Level: all levels.
A recommended book for beginners, as it summarizes and focuses quite well. As an approximation to the type of assets and their characteristics, and the approach to the principles of the father of value investment Benjamin Graham, it is a tool that can be very useful.
For beginners and advanced, perhaps the most profitable, and with what would remain me on a personal level would be the versatility of Miguel de Juan as an investor. The real cases explained of investment in corporate bonds, arbitrage, compounders ... have reminded me that value investing encompasses much more than equities and that the intelligent investor is not one who invests in assets of one type or another, but one who invests with a certain margin of safety, preserving the principal and ensuring adequate performance. It is what, and sometimes we tend to forget, differentiates the concept of investment and that of speculation and the central axis by which that idea, exemplified by the hand of De Juan in his experience, pays a well-deserved tribute to Benjamin Graham.
“Miguel de Juan has written a correct and appropriate tribute to Benjamin Graham for the Spanish-speaking value investor. It's really gratifying to see how far across the world Ben Graham's influence has come. "
Guy Spier (Aquamarine Fund-Zurich)
“I am delighted that Miguel de Juan has introduced Graham to Spanish investors; in doing so, he reminds them of the last Scholastics. De Juan and others like Huerta de Soto, demonstrate that politics are not our saviors and that politics is not our salvation. Only free men and women, selling and investing prudently, can rescue Spain from the moral and economic damage for which governments have reduced it. "
Chris Leithner (Leithner & Company PTY Ltd)
“Miguel is an intelligent, capable, cultured and honest investor. I have not met another person like him in this sector. From the book I am left with the analysis of the Net-Net (already somewhat forgotten) and the compounders. The latter are the ones we like at True Value. "
José Luis Benito Corres (True Value FI)
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