Presentation
Apparently, Bud had an offer to have the Four Filters published but the publisher wanted to make changes that bud was not too fond of and so Bud decided to publish the book himself. Upon receiving the package, I was a bit surprised as to how the book was presented. It looks like a college research paper which has its positives and negatives. The negatives, the obvious being it does not look professional. In addition, it does not fit in very well if I set it in my library. I found several small errors but nothing too big that will take the value of the book to zero. On the other hand, the material was easy to read with Bud using regular 12 pt. Times New Roman Font. The tables of contents were clearly laid out in the beginning and were followed throughout the book. Overall, I liked the presentation. Although it the book might not look too good in my library, Bud’s willingness to stand up for his work more than makes up for the minor nuisances. Plus, I will take a. easy to read book that is not published over a published book that I have to squint my eyes to read the pages any day. Overall grade on presentation B-.

Content
Now for the meat of the book, the content. Regular readers of Value Investing will nothing new hear. Throughout the book, bud points out Warren Buffett and Charlie Munger’s “Four Filter” system that will eliminate inferior investments and filter out quality investments that will provide both good returns with little downside. The four filters as mentioned in the book are
1. An understandable business
2. Competitive Advantage
3. First Class Management
4. Available At Bargain Prices

Filled with numerous quotes and historical references Bud makes his case on how the four filter system came about and how Warren Buffett are implementing it today. I found several new quotes in the book that I have not seen such as Charlie Munger calling EBITDA “Bullshit Earnings” and Bud’s S.O.A.P process on how to evaluate management. It is obvious Bud did his homework. Nevertheless, a novice investor looking to start out on the right foot will benefit from Bud’s work. The quotes were approved by Warren Buffett and are integrated well into the book. I will try not to give away too much from the book, but Bud does a heck of a job in analyzing Kraft using the four filter system. The book could have been further expanded by adding more examples of the four filter system and possibly expanding certain chapters such as the chapter on management. Overall Grade, B. Nothing unique but the implementation of quotes was great and author did due his due diligence.

Readability

Bud’s style of writing is easy to read and no one should have a problem implementing the four filters. Bud went straight to the point and made his ideas very clear. Overall, A.

Commentary
As mentioned above the book will not be a huge eye opener to someone who constantly reads material on value investing. The book will get someone started in value investing on the right foot. If the book would have been published it would make a nice addition to a value investing library, but given the circumstances it loses a bit of value. Overall I give it 7.5 out of 10. I find it hard paying $40 for a book that is not professionaly published and its content is not really an eye opener.

The book and audio CD are available through Bud’s website http://www.frips.com/. Bud Labitan can be contacted at
budlabitan@aol.com

• Value Investing: From Graham to Buffett and Beyond- Bruce Greenwald
• The Little Book Of Value Investing-Christopher Browne
• The Intelligent Investor- Benjamin Graham

Lost in the pile are some great books that often get overshadowed by the “well known”. Below is a list of unknowns that should be considered on every value investor’s library.

1. The Rediscovered Benjamin Graham: Selected Writings of the Wall Street Legend- One of many value investing books by Janet Lowe,this gem provides plenty of unknown material by the dean of value investing. As every Benjamin Graham book out there, there is plenty of valuable information to digest.
   
2. Poor Charlie’s Almanack Expanded Second Edition. The Wit and Wisdom of Charles T. Munger- By the man who said he didn’t set out in life to become the assistant leader of a cult, “Poor Charlie’s” allows the world to see how one of the greatest financial minds of our day views the world. Upon reading this masterpiece, one will truly acknowledge the wit and wisdom of Charles T. Munger
3. Psychology and the Stock Market: Investment Strategy Beyond Random Walk by David Dreman- One of the earliest books on behavior finance, David Dreman gives the reader a great primer on bubbles and low P/E investing. If you are looking for a book on fear and greed, look no further.
4. The Five Rules for Successful Stock Investing: Morningstar’s Guide to Building Wealth and Winning in the Market by Pat Dorsey. Christopher Davis of Davis Advisors summed up the book as, “His (Pat Dorsey) methodology is sound, his examples clear, and his approach timeless.” I highly reccommend this book to anyone who is interested in value investing. The book provides a great introduction into modern day security analysis, valuation, industry analysis, moats, etc..