Print List Price:	$28.00
Kindle Price:	$17.00 Save $11.00 (39%)
Sold by:	JOHN WILEY AND SONS INC Price set by seller.

Promotions apply when you purchase

Add an

audiobook with Audible narration for $4.49

Audiobook Price: $18.80

Save: $14.31 (76%)

Read with our free app

You've subscribed to ! We will preorder your items within 24 hours of when they become available. When new books are released, we'll charge your default payment method for the lowest price available during the pre-order period.

Update your device or payment method, cancel individual pre-orders or your subscription at
Your Memberships & Subscriptions

There was an error. We were unable to process your subscription due to an error. Please refresh and try again.

Follow the author

Pat Dorsey

+ Follow

More books from this author

The Little Book That Builds Wealth: The Knockout Formula for Finding Great Investments (Little Books. Big Profits 12) Kindle Edition

by Pat Dorsey (Author) Format: Kindle Edition

4.6 811 ratings

Part of: Little Books. Big Profits (26 books)

See all formats and editions

In The Little Book That Builds Wealth, author Pat Dorsey—the Director of Equity Research for leading independent investment research provider Morningstar, Inc.—reveals why competitive advantages, or economic moats, are such strong indicators of great long-term investments and examines four of their most common sources: intangible assets, cost advantages, customer-switching costs, and network economics. Along the way, he skillfully outlines this proven approach and reveals how you can effectively apply it to your own investment endeavors.

Editorial Reviews

Review

"A detailed exploration of Warren Buffet's "wide economic moat" concept - how to find companies with a true in-built competitive advantage." (Financial Times, Tues 26th February)

"Pat Dorsey...discusses in an easy to read style why economic moats are such great indicators of long term performance." (Pensions World, October 2008)

From the Inside Flap

To make money in today's dynamic market environment, you need to invest in companies that will perform in the face of sustained competitive pressure. But how can you accurately identify companies that are great today and likely to remain great for many years to come?

The answer to this question lies in competitive advantages, or economic moats. Just as moats were dug around medieval castles to keep the opposition at bay, economic moats protect the high returns on capital enjoyed by the world's best companies. If you can identify companies that have moats, and you can purchase their shares at reasonable prices, you'll begin to build a portfolio of solid businesses that will improve your odds of doing well in the stock market.

In The Little Book That Builds Wealth, author Pat Dorsey the Director of Equity Research for leading independent investment research provider Morningstar, Inc. outlines this proven approach and reveals how you can effectively apply it to your own investments. Step by step, Dorsey discusses why economic moats are such strong indicators of great long-term investments and examines four of their most common sources: intangible assets, cost advantages, customer-switching costs, and network economics. After establishing a firm understanding of moats, Dorsey shows you how to recognize moats that are eroding, the key role that industry structure plays in creating competitive advantage, and how management can create (as well as destroy) moats.

Along the way, Dorsey provides an informative overview of valuation because even a wide-moat company will be a poor investment if you pay too much for its shares and illustrates the issues addressed through case studies that apply competitive analysis to some well-known companies.

Although the moat concept is not a new one it was made famous by Warren Buffett the modern-day investor can benefit from what it has to offer. With The Little Book That Builds Wealth as your guide, you'll quickly discover why moats should be an integral part of your analytical investment toolkit and learn how to leverage this approach to build a portfolio of high-performance stocks.

Product details

ASIN ‏ : ‎ B008L045N4
Publisher ‏ : ‎ Wiley; 1st edition (May 18, 2009)
Publication date ‏ : ‎ May 18, 2009
Language ‏ : ‎ English
File size ‏ : ‎ 1009 KB
Text-to-Speech ‏ : ‎ Enabled
Screen Reader ‏ : ‎ Supported
Enhanced typesetting ‏ : ‎ Enabled
X-Ray ‏ : ‎ Not Enabled
Word Wise ‏ : ‎ Enabled
Sticky notes ‏ : ‎ On Kindle Scribe
Print length ‏ : ‎ 178 pages

Best Sellers Rank: #604,726 in Kindle Store (See Top 100 in Kindle Store)
- #714 in Investing Basics
- #2,060 in Introduction to Investing
- #5,034 in Business & Investing (Kindle Store)

Customer Reviews:
4.6 811 ratings

Brief content visible, double tap to read full content.

Full content visible, double tap to read brief content.

Videos

Help others learn more about this product by uploading a video!

Upload your video

About the author

Follow authors to get new release updates, plus improved recommendations.

Pat Dorsey

Brief content visible, double tap to read full content.

Full content visible, double tap to read brief content.

Pat is the founder of Dorsey Asset Management, which manages concentrated global equity portfolios on behalf of endowments, foundations, and family offices. Prior to starting Dorsey Asset, Pat was Director of Research for Sanibel Captiva Trust, an independent trust company with approximately $1 billion in assets under management.

From 2000 to 2011, Pat was Director of Equity Research for Morningstar, where he led the growth of Morningstar’s equity research group from 10 to over 100 analysts. Pat developed Morningstar’s economic moat ratings, as well as the methodology behind Morningstar's framework for analyzing competitive advantage.

Pat holds a Master’s degree in Political Science from Northwestern University and a bachelor’s degree in government from Wesleyan University. He is a CFA charterholder.

Customer reviews

4.6 out of 5

811 global ratings

How customer reviews and ratings work

Sort reviews by

Top reviews from the United States

There was a problem filtering reviews right now. Please try again later.

Jusuf Hariman

The Knockout Formula for Finding Great Investments

Reviewed in the United States on February 5, 2009

Verified Purchase

If Michael Porter's "Competitive Advantage" can be seen as the first book that conclusively illustrates "managerial" competitive advantage, Pat Dorsey's "The Little Book That Builds Wealth" can be seen as the first book that conclusively illustrates "investing" competitive advantage (I do not regard Warren Buffett's annual reports as a book). Many people invest by reacting, "My brother-in-law recommended it" or "I read about it in Money". It's also easy to get distracted by daily price gyrations and pundits who pontificate about short term market swings. Far better to have a conceptual anchor to help you evaluate stocks and build a rational portfolio. That's when investing competitive advantage, what Warren Buffett calls economic moats are invaluable. This book primarily deals with businesses that can generate above-average profit for many years, despite intense and constant competitive threats. Return on capital is the best benchmark of a company's profitability. It measures how effectively a company uses all of its assets - people, factories, investments - to make money for shareholders. Companies with strong competitive advantage can regularly post return on capital at 20+ percent, which is a rate of return very few money managers can achieve over long periods of time. This book provides a sensible framework for identifying companies that can sustain high return on capital. It tells the reader how to look for durable competitive advantage in choosing equities. The 4 sources of competitive advantage are: (1). Intangible assets; (2). Switching costs; (3). Network effects and (4). Cost advantage. These 4 sources of competitive advantage are elaborated throughout the book. Digest this book and you will develop a solid foundation for making smart investing decisions.

23 people found this helpful

Helpful

Kyle Easton

Love the little book series

Reviewed in the United States on April 14, 2024

Verified Purchase

All of the books in this series are AWESOME! Have learned so much

Helpful

Nate M.

great introduction to the economic moat concept

Reviewed in the United States on July 18, 2017

Verified Purchase

Great introduction to the determining the valuation of a company. I hadn't read anything with Morningstar before so the "moat" concept was foreign to me going into this book. However it was very easy to read, and we picked pick up the concept pretty quickly.

5 people found this helpful

Helpful

Kindle Customer

Short and good

Reviewed in the United States on January 22, 2024

Short and good

Highly valuable read about MOATs!!!

Reviewed in the United States on January 2, 2021

Verified Purchase

The best summary about Mosts!!!
Will definitely influence my investment strategy.
Easy to read and full of good examples!!!

Thank you very much!!!

3 people found this helpful

Helpful

B

Qualitative over Quantitative

Reviewed in the United States on May 23, 2022

Verified Purchase

This is the perfect beginners guide to qualitative analysis. Uni spends too much time on Quantitative, and not nearly enough on Qualitative. Numbers are easy, moats are hard.

One person found this helpful

Helpful

Kristen mau

Good read

Reviewed in the United States on April 10, 2020

Verified Purchase

Learn a lot, good for beginners to learn competitive advantages of a company. I will recommend it to all the readers.

Reviewed in the United States on December 12, 2014

Verified Purchase

THE WORLD HAS CHANGED A LOT IN THE PAST TWENTY YEARS OR SO AND ALONG WITH IT THE CRAFT OF INVESTING. IN BEN GRAHAM'S DAY IT WAS HARD ASSETS THAT WERE CONSIDERED WEALTH ( LARGE FACTORIES WITH HUGE CHIMNEYS BELCHING OUT SMOKE, HUGE WORK FORCE, HEAVY DUTY MACHINARY, CASH IN THE BANK ETC ETC) NOW REAL WEALTH IS INTANGIBLE, IT CANNOT BE TOUCHED IT CANNOT BE SEEN YOU CAN'T SMELL IT. IT EXISTS IN THE MIND (BRANDS) AND IT LIVES IN THE INFORMATION SUPERHIGHWAY(NETWORKS) OR MONOPOLIES REAL OR MANMADE. WRITTEN BY A MAN WHO KNOWS THE NITTY GRITTY OF INVESTING IN COMPANIES. THIS IS THE WAY BUFFET MADE HIS BILLIONS. PAT DORSEY HAS WRITTEN TWO BOOKS ON WEALTH CREATION. BOTH ARE WORTH THEIR WEIGHT IN GOLD.

3 people found this helpful

Helpful

Top reviews from other countries

Translate all reviews to English

stefanosky

Opera d'arte

Reviewed in Italy on October 23, 2022

Verified Purchase

Il libro più utile che abbia letto finora sul investimento azionario

Translate review to English

Jonas

Great book about economic moats

Reviewed in Germany on May 21, 2020

Verified Purchase

The book explains really goos what economic moats are, what types there are, where to find them, etc.
Its written without any useless banter = the author always gets directly to the point. The used examples for the different kind of moats are most of the time very helpful.

Would definitly recommend this book.

Cristian Gadelha

Melhor livro sobre Fossos Econômicos

Reviewed in Brazil on May 19, 2017

Verified Purchase

Esse foi um dos melhores livros que já li sobre ações para investir pensando no longo prazo. O autor se apegou a uma fala do Warren Buffett de que investe em empresas que possuam fossos econômicos (barreiras que dificultam ou impedem concorrentes no mercado) e estudou esta lógica profundamente de forma tal que em sua teoria afirma que empresas boas para o longo prazo são aquelas que além de ter lucros constantes, crescentes etc etc a principal característica de se gerar retorno no longo prazo é a capacidade da empresa de manter e se aproveitar desses fossos.

O autor analisa detalhadamente o que ele considera como falsos fossos econômicos (como empresas de grande Market Share) e analisa profundamente os 4 principais tipos de fossos econômicos citando os exemplos de empresas que os possuem.

Cuidado apenas para não confundir (enquanto estiver lendo) fossos econômicos com vantagens competitivas, pois são assuntos e teorias diferentes.

Vale a pena cada centavo gasto

10 people found this helpful

Translate review to English

OptimismX

古典

Reviewed in Japan on December 21, 2023

Verified Purchase

これを読まないと経済も金融も語れないですね。買って得をした気分。

Translate review to English

Miguel Ángel Balibrea

Great buy!

Reviewed in Spain on September 1, 2017

Verified Purchase

Great book on competitive advantages. Recommended fir people interested in investing. Great price value. Congratulations to Pat Dorsey and the little book collection.

Buy for others

Buying and sending eBooks to others

Follow the author

Image Unavailable

The Little Book That Builds Wealth: The Knockout Formula for Finding Great Investments (Little Books. Big Profits 12) Kindle Edition

Editorial Reviews

Review

From the Inside Flap

From the Back Cover

About the Author

Product details

Videos

About the author

Pat Dorsey

Customer reviews

Top reviews from the United States

There was a problem filtering reviews right now. Please try again later.

Top reviews from other countries