by Warren E. Buffett and edited by Lawrence A. Cunningham

John Wiley & Sons Ltd., 2009, 328 pp.

Every year, Warren Buffett, CEO of Berkshire Hathaway Inc., writes a letter to shareholders reviewing annual operating and investment performance. In these letters, Buffett thoroughly discusses his investment philosophies and beliefs. Professor Lawrence A. Cunningham, Henry St. George Tucker III Research Professor of Law at George Washington University, has organized these letters into a book of essays. They are organized topically according to corporate governance, corporate finance and investing, common stock, mergers and acquisitions, accounting and valuation, and accounting policy and tax matters.

Although many authors have written about Buffett’s strategies, this book is written by Buffett himself. The essays illustrate his true investment philosophies without distortion. Moreover, the book is a fun read. In addition to being a successful investor, Buffett is a good writer with a strong sense of humor. He provides funny analogies and lively examples to express ideas. For example, the book defines the “Cigar butt approach to investing” as follows: “If you buy a stock at sufficiently low price, there will usually be some hiccup in the fortunes of the business that gives you a chance to unload at a decent profit, even though the long-term performance of the business may be terrible. (This is like) a cigar butt found on the street that has only one puff left in it[. It] may not offer much of a smoke, but the bargain purchase will make that puff all profit.” (1989 annual letter)

Overall, Cunningham does an excellent job organizing the essays in a manner that allows readers to follow Buffett’s thoughts efficiently. For those interested in learning the inside approach to Buffett’s investment strategies, this book is a must read.

By Antonio Wong, Ph.D., CFA, lecturer of finance, The Hong Kong Polytechnic University

by Martin O’Neill

Third Bridge Press, 2009, 156 pp.

Now is the time for owners of midsize companies to start planning an exit strategy and building maximum value in their businesses, according to author Martin O’Neill. His book, Building Business Value, is specifically geared toward helping business owners and C-level executives identify their company’s current value and define a course toward a specific value vision.

Based on his personal experience owning and running businesses, O’Neill understands the daily struggles and crises that arise from running a midsize company. “It’s hard to think about the future when you’ve got so much to worry about today,” he acknowledges. Yet, C-level executives almost need the discipline of Wall Street to force them to assess where they are today and where they wantto go in the future.

O’Neill highlights 25 mistakes business leaders make that contribute to subpar business valuations when it comes time to exit their business. Understanding these mistakes can help executives “begin the process of building a super-premium business value.” The first step involves information gathering to honestly assess the state of the company—recognizing what is done well and identifying areas for improvement. Once the leadership team has agreed on its company’s standing and committed to the value-building process, the next steps are working to increase operational effectiveness by focusing less on small tasks that don’t add value, learning to delegate more effectively, and implementing processes and structure for the company. The final step is to choose the right path based on a clear vision and well-informed decisions. O’Neill uses instructions, exercises, flow charts and diagrams to guide leaders through each step.

Building Business Value is a practical guide that will assist midsize business owners with their exit strategy planning by showing them the path toward building business value today.

By JofA Senior Editor Loanna Overcash

edited by Joseph T. Wells, CPA, CFE

John Wiley and Sons Inc., 2009, 424 pp.

Writing about accounting—or computers, for that matter—often can seem clinical to the point of disembodiment. The two together could be, well, a bit dry. Joe Wells can be counted on for a good tale or two of people who are coldly calculating in the villainous sense of the term, revealing the all-toohuman motivations of greed and mendacity. He has collected 42 such tales here, case studies by members of the Association of Certified Fraud Examiners that Wells founded and chairs. Each is a dramatic narrative illustrating thefts and deceptions by e-mail, online auctions, computer security breaches, counterfeiting and other exploits.

As Wells says in an introduction, detecting and preventing computer fraud is particularly important these days, given the fact that “in a worst-case scenario, hackers and cyberthieves could cripple the global economy.” In fact, major national newspapers have devoted a good deal of coverage recently to how cloak and dagger has given way to IP masking and keyloggers. Spies or saboteurs hacking into military sites or systems controlling the power grid and other critical infrastructure pose a threat of unimaginable proportions. And, as Wells said, prevention is paramount because in most cases computer fraudsters escape prosecution.

Each case includes a “lessons learned” and “recommendations to prevent future occurrences” summary. Most of these cases illustrate not so much how to build a better firewall as its limitations in the face of human error and infamy.

By JofA Senior Editor Paul Bonner