Excess Returns, A comparative study of the method of world greatest investors by Frederik Vanhaverbeke was published in 2014. Currently, Vanhaverbeke is Bond Portfolio manager at the Belgium KBC, however, he studied Electrical Engineering in Antwerp. Excess Returns is a very detailed book about stocks. Although portfolio construction is not discussed very thoroughly, the book describes in much detail the investment process, buying and selling and risk versus return of individual stocks. The last chapter is called “The Intelligent Investor”.

This book is highly recommendable for all equity investors. Seldom was written such a complete, well-ordered book about all aspects of selecting stocks. The very specific text alternates with light examples about stocks, which professional investors will recognise.

Nowadays the discussion whether to invest actively or passively is still not closed. Frederik Vanhaverbeke shows which top investors by using stock picking are standing out. These investors are much discussed in this book to illustrate why a good process is important and to show that you should as little as possible be dependent on coincidence.

Vanhaverbeke shows frequently tables, graphs and diagrams to give a very clear overview. At the end of the book there are conversations with management teams. Is this a pro or a con? Management normally knows a lot more than the equity investor, however can you get valuable information from them or do they only cause confusion?

According to Warren Buffet this is what management is all about in the end: “The first question I always ask myself about somebody in his position: Do they love the money or do they love the business?”

OpinioPro vs ‘Excess Returns’

‘Excess Returns’ shows us that making good stock selections, you need to make a case. Conditions for a good case are: valuable information, in other words research that  supports a case, and research that claims the opposite. Being aware of  the consensus is useful here as well. OpinioPro has currently got over 2,500 research documents uploaded on its platform.

The best investors read a lot and support their case fundamentally. OpinioPro has fundamental research about nearly every subject a professional investor needs. OpinioPro wants to assist professional investors optimally, by making investment research very accessible. This will lead to better decisions when investing. The best ‘research engine’ is now available without registration at www.opiniopro.com

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