Valuation: Measuring and Managing the Value of Companies
Valuation: Measuring and Managing the Value of Companies, Fourth Edition (buy from Amazon) by David Wessels
Type: Business
Author:McKinsey & Company Inc., Tom Copeland, Tim Koller, Jack Murrin
My rating: 5
Book introduction:
This is the tool book for doing all sorts of valuation on companies, ROIC, EBITA, EBIT. You name it, it has all of them.
My review:
This is again one of the first set of business tool book that I was given during my time at McKinsey. Excellent book! Here is where I learned the ROIC tree if you know what I am talking about :-)
The Business School for People Who Like Helping People
The Business School for People Who Like Helping People (buy from Amazon) by Robert T. Kiyosaki
Type: Business
Author:Robert T. Kiyosaki
My rating: 4
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Type(s): Business
Book introduction:
This book talks about the 4 different types of income source:
Temporary income
E = Employee, you are essentially trading your time for money and you try to improve your hourly rate.
S = Self-employeed, you are your own boss and you determine your own hourly rate. But if you stop working, your income stops also.
Residual income
B = Business owner, you have your own business and many people work for you.
I = Investor, you invest money into business and generate a return from that, even you are not actively working
What's the major difference in temporary income (E&S) and residual income (B&I)? It's leverage, E&S are only utilising their own 24 hours each day. B&I are leveraging other people's time. 95% of people are in E and S quadrants because we have been trained and prepared to be in E and S! This book talks about how to make the transformation from E&S to B&I. What we need to learn and more importantly what we need to "unlearn".
It also talks about how we might be able to start some "B" business.
Quote: Most people look for a job, smart people build network.
My review:
It has changed my thinking. We are all getting tired of just "employee's type of temporary income". As we know retirement is getting more and more expensive, the population is aging. If you have ever tried to work out the amount of money needed for retirement, it can be very disheartening and sometimes you wonder whether you will be able to 1) save enough money and 2) REALLY maintain your lifestyle. We don't want to end up working like a dog just to have enough saving for retirement, we want to maintain our lifestyle now and continously. This book gives some insight on how we could grow our income source and gain our time and financial freedom.
I would rather have 1% of time of 100 people than 100% of my own.