"I learned the investment business largely from the work and thinking of other investors. The Art of Value Investing is a thoughtfully organized compilation of some of the best investment insights I have ever read. Read this book with care. It will be one of the highest-return investments you will ever make."
Based on interviews with the world's most-successful value investors, The Art of Value Investing offers a comprehensive set of answers to the questions every equity money manager should have thought through clearly before holding himself or herself out as a worthy steward of other people's money. What market inefficiencies will I try to exploit? How will I generate ideas? What will be my geographic focus? What analytical edge will I hope to have? What valuation methodologies will I use? What time horizon will I typically employ? How many stocks will I own? How specifically will I decide to buy or sell? Will I hedge, and how? How will I keep my emotions from getting the best of me?
Who should read The Art of Value Investing? It is as vital a resource for the just?]starting?]out investor as for the sophisticated professional one. The former will find a comprehensive guidebook for defining a sound investment strategy from A-to-Z; the latter will find all aspects of his or her existing practice challenged or reconfirmed by the provocative thinking of their most-successful peers. It also is a must?]read for any investor – institutional or individual – charged with choosing the best managers for the money they are allocating to equities. Choosing the right managers requires knowing all the right questions to ask as well as the answers worthy of respect and attention – both of which are delivered in The Art of Value Investing.
Table of Contents
Chapter 1 “All Sensible Investing Is Value Investing” 5
Part ONE Field of Play 33
Chapter 2 Circle of Competence 35
Chapter 3 Deficient Market Hypothesis 65
Chapter 4 Fertile Ground 81
Chapter 5 Generating Ideas 99
Part TWO Building the Case 115
Chapter 6 Cutting Through the Noise 117
Chapter 7 Getting to Yes 183
Part Three Active Management 213
Chapter 8 The Portfolio 215
Chapter 9 Playing the Hand 233
Chapter 10 Guarding Against Risk 257
Chapter 11 Making the Sale 281
Chapter 12 Of Sound Mind 299