Lessons from the Legends of Wall Street

The five investors named in the subtitle of this book are undoubtedly among the most influential American investors of the 20th century: Graham and Fisher primarily as teachers, the other three for building large, successful investment companies. Ross summarizes their methods, then presents a composite version of their strategies. Is such a ""greatest hits"" compilation useful? After all, three of these investors have written their own books, and one could fill a small library with works by their interpreters and disciples. Many investment students will still find this book valuable as a starting point or as an accessible alternative to the originals. Ross packs a large fraction of each investor's ideas into an average of 45 pages, including enough details and formulas to make the ideas usable, yet the book is still easy to read. Benjamin Graham, by contrast, can be tedious to read and Warren Buffett is fond of dropping aphorisms that sound indisputable but provide little useful guidance for real investment decisions. One advantage here is that each method is broken down into three systematic steps, making it easy to see the commonalities and departures of each system. Biographical information is also included, giving context to the teachings. Purists will justifiably complain that this approach does not adequately capture the essence of each investor, and some will argue that grasping this essence makes all the difference between serious, disciplined investing and dilettantism. But most readers will find at least some useful insights. (Sept.)