Reasons to Pass - by Ralph Birchmeier (Hardcover)

About the Book

Ralph Birchmeier argues that an optimal portfolio-building strategy means patiently waiting for the few investments worthy of capital allocation. He outlines the principles required for success then examines specific reasons to pass on investments, detailing behavioral biases that disrupt optimal decision making.

Book Synopsis

Confidence and conviction are the keys to success in asset management. Analysts projecting these traits become more likely candidates for promotion; clients gravitate to portfolio managers who radiate assurance about future performance. However, these qualities do a disservice to optimal decision making and long-term investment performance. The future is too complex to justify such levels of confidence.

In Reasons to Pass, the seasoned practitioner Ralph Birchmeier argues that an optimal portfolio-building strategy means patiently waiting for the few investments worthy of capital allocation. He outlines the principles required for success then examines specific reasons to pass on investments, detailing behavioral biases that disrupt optimal decision making. Although professional and retail investors alike are tempted by various opportunities, the wisdom of experience proves the value of prudence. An investing strategy built to last requires humility and the willingness to accept uncertainty; most of the time, it's best to pass.

Reasons to Pass brings investing back to the basics, helping readers navigate the complexity of the financial landscape and bringing clarity to the investment process. By underscoring the perils of overconfidence and the importance of humility, this book offers invaluable new perspective on investing for the long term.

Review Quotes

Ralph Birchmeier covers extensive territory, expanding on Graham's fundamental principles as well as Warren Buffett and Charlie Munger's ideals to offer new perspectives on investing wisely. Readers will greatly benefit from his insights on accounting and valuation.--Jean-Marie Eveillard, trustee emeritus, First Eagle Funds

Ralph Birchmeier presents a unique and comprehensive survey of investment opportunities in global equity capital markets, elegantly demonstrating why good investments are hard to find.--Joel Lusman, Lusman Capital Management

While most investment books tell you what to look for in an investment, more importantly, Reasons to Pass tells you what to avoid. Ralph Birchmeier has distilled his decades of hands-on experience into a book that offers a comprehensive and entertaining introduction to core investing principles for the aspiring investor.--Paul D. Sonkin, coauthor of The Enduring Value of Roger Murray and Pitch the Perfect Investment

About the Author

Ralph Birchmeier was a CPA, became a CFA charterholder, and worked at Brandes Investment Partners LP as a global equity analyst and investment committee member for nearly twenty years, building global equity portfolios. Today, he is a private investor and guest lecturer on accounting, finance, and valuation.