If you were buying a brand new car, would you do so without a test drive? No of course not. Not only that but you would likely do a Google search to see what buyers are saying about the car, maybe buy a consumer reports magazine to compare similar models, talk to friends who may drive that particular model, and if you have a friend in the car business ask them for their advice. I think all of this would be considered rather normal before you made a purchase decision.
The irony is that most investors put more due diligence into a car purchase then where they are putting their life savings. So many investors, even professional investors, only conduct surface due diligence on companies. Surface due diligence is information that is readily available like SEC Filings, financial statements, and press releases. Yes, surface due diligence is very important and necessary but this is only where due diligence starts. Analyzing a company and management team without meeting management or visiting their facility is like buying a car without test-driving it. At the very least you should talk to management, and this is a must with microcap investing.
The Sleuth Investor is the best book I’ve read on conducting due diligence beyond the norm. Sleuth is another word for being a detective and this book highlights sleuthing tactics to get little known facts about a company that can give you an edge in investing. Mandelman goes into detail about his three physical elements of sleuthing: People (management, customers, suppliers), Product (analyzing products), and Plant & Periphery (touring factories, offices etc). I felt some of the approaches he used were a bit extreme, and even Mandelman notes to check with an attorney before conducting certain types of due diligence. Overall though I felt the book was a great read and provided thorough insight into how sleuthing is done as it relates to investing. You will enjoy The Sleuth Investor.


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The Sleuth Investor: Uncover the Best Stocks Before They make Their Move Hardcover – 23 February 2007
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Avner Mandelman
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Avner Mandelman
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Product details
- Publisher : McGraw-Hill Education; 1st edition (23 February 2007)
- Language : English
- Hardcover : 224 pages
- ISBN-10 : 0071481850
- ISBN-13 : 978-0071481854
- Dimensions : 16.51 x 2.03 x 23.11 cm
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Best Sellers Rank:
142,566 in Books (See Top 100 in Books)
- 131 in Business Investments Textbooks
- 321 in Leadership Training
- 1,370 in Finance (Books)
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Product description
From the Back Cover
Dial M for Money-
With inside information you can only get by Sleuth Investing!
Public information and analysis are worthless for making fortune in the stock market. The real money lies in obtaining exclusive physical information about a company. Now, for the first time, you'll discover what only the savviest investors know.
In The Sleuth Investor, renowned investing expert Avner Mandelman gives you step-by-step guidance on money sleuthing. Packed with proven tools and techniques for detecting investment clues and separating the good stocks from the bad, this prescriptive guide explains how to dig into a company's inner workings and spot the signals of critical events before they happen.
- Uncover important truths about a company that all insiders know-but no one else dares speak of
- Find out in advance if a company is about to report high growth
- Identify stock disasters that can be shorted
- Anticipate mergers and acquisitions right before they occur
- Focus on the very few sure stocks and ignore all others
About the Author
McGraw-Hill authors represent the leading experts in their fields and are dedicated to improving the lives, careers, and interests of readers worldwide
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MicroCapClub
5.0 out of 5 stars
great book for investors that goes over due diligence techniques
Reviewed in the United States on 16 April 2014Verified Purchase
3 people found this helpful
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JM
5.0 out of 5 stars
Investor have trmendoes advantage if they read this book and follow what has been mentioned.
Reviewed in the United States on 18 December 2010Verified Purchase
I always thought that nobody would write such a type of book. Avner Mandelman has done an amazing job of putting down his investment-trading philosophy in an easy to understand book. People who really know, do not want to share. Good writers write, good traders trade and good investors invest. Rarely we have someone who is actually a good investor - trader and also a good writer who wants to share. Here a good investor and a good writer has shared his knowledge in detail and shows what works and what doesn't. I have read Peter Lynch and Fisher but there was something missing. Mandelman has filled that gap very easily. His book might not be well known like O U On Wall Street or Common Stocks but serious investors with a learning machine abilities will find this book to be of tremendous value. His book has reinforced my belief: A public-opinion poll is no substitute for thought. There is no such thing as a free lunch. No doubt about it. I was glad to see Warren, Charlie, Lynch, Fisher, Jim Rogers being quoted there. I have personally benefited a lot from these people and so am glad to have found this gem in Sleuth Investor. Thank you Mandelman.
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