Financial Analysis & Modelling Books for a New Analyst?
Compiling Nomad Cap’s tweet replies
I’m trying to be helpful by listing and linking people’s recommendations for books on financial statements analysis and modelling useful for a new analyst.
Inspired by Nomad Cap’s [since deleted] tweet, “Can anyone recommend a book/books on financial statements analysis and modelling for a new analyst with very little finance training?”
Valuation and Analysis
Best Practices for Equity Research Analysts by James Valentine
Financial Statement Analysis: A Practitioner’s Guide by Martin S. Fridson and Fernando Alvarez
How to Read a Financial Report: Wringing Vital Signs Out of the Numbers by John A. Tracy & Tage C. Tracy
Investment Banking: Valuation, Leveraged Buyouts, and Mergers and Acquisitions by Joshua Rosenbaum & Joshua Pearl
Valuation: Measuring and Managing the Value of Companies by McKinsey & Company
Value: The Four Cornerstones of Corporate Finance by McKinsey & Company
Warren Buffett and the Interpretation of Financial Statements by Mary Buffett & David Clark
Why Stocks Go Up and Down by William H. Pike CFA and Patrick C. Gregory CFA
Corporate Finance by Stephen Ross, Randolph Westerfield , et al.
Financial Accounting: Reporting, Analysis And Decision Making by Shirley Carlon, Rosina McAlpine, et al.
Fundamentals of Corporate Finance by Jonathan Berk , Peter DeMarzo, et al.
Financial Shenanigans by Howard Schilit , Jeremy Perler , et al
Investor Amnesia [Newsletter]
William Ackman: Everything You Need to Know About Finance and Investing in Under an Hour [YouTube]
Best thing to do is download a sell side report, read it thoroughly, email the analyst with feedback and ask politely for their model. Then go line by line with the model and the SEC website to understand the numbers and how they build to a price target
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