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.
Praise for The Art of Value Investing
"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." -Bill Ackman of Pershing Square Capital Management.
Contents
- Introduction
Chapter 1 "All Sensible Investing Is Value Investing"
- What It Means to Be a Value Investor
- Does Quality Matter?
- The Value of Growth
- The Value Mindset
Part 1 Field of Play
Chapter 2 Circle of Competence
Chapter 2 Circle of Competence
- The Right Size
- Industry Preference
- Where in the World?
Chapter 3 Deficient Market Hypothesis
- The Human Element
- It’s a Matter of Time
Chapter 4 Fertile Ground
- In Search of Uncertainty
- Special Situations
- Operating Turnarounds
Chapter 5 Generating Ideas
- Behind the Screen
- Follow the Lead
- Reliable Sources
Part 2 Building the Case
Chapter 6 Cutting Through the Noise
Chapter 6 Cutting Through the Noise
- Second-Level Thinking
- Macro versus Micro
- Business First
- What Quality Means
- Crunching the Numbers
- What Could Go Wrong?
- From the Top
- How Important Is Management?
- Handicapping the Jockeys
- Red Flags
- Catalysts
- Getting It Done
- Organizing Principles
Chapter 7 Getting to Yes
- Cash (Flow) Is King
- Multiple Angles
- The Informed Buyer
- Model Behavior
- Playing the Odds
- Theories of Relativity
- Pulling the Trigger
Part 3 Active Management
Chapter 8 The Portfolio
Chapter 8 The Portfolio
- Concentration versus Diversification
- The Size That Fits
- Cognizance of Correlation
Chapter 9 Playing the Hand
- Trading Mentality
- Dealing with Adversity
- Taking a Stand
- Attracting Activists’ Attention
Chapter 10 Guarding Against Risk
- Margin of Safety
- Building a Position
- Cash Management
- Midas Touch
- Hedging Bets
- To Short or Not to Short?
- Value Destroyers
- Portfolio Hedging
- Is Shorting Inherently Evil?
Chapter 11 Making the Sale
- Why to Sell
- Selling by the Numbers
- Getting the Timing Right
- Sale Process
Part 4 Of Sound Mind
Chapter 12 Of Sound Mind
Chapter 12 Of Sound Mind
- Competitive Spirit
- Independent Thought
- Perpetual Student
- To Err Is Human
- Be Ever So Humble
- The Final Word
- Index
About the Authors
- JOHN HEINS is the cofounder and President of Value Investor Media, Inc., a media company founded in 2004 to provide investing ideas and insight to sophisticated professional and individual investors, and Editor-in-Chief of Value Investor Insight and SuperInvestor Insight. Previously, Mr. Heins was President and Chief Executive Officer of Gruner + Jahr USA Publishing, Bertelsmann AG's U.S. magazine subsidiary, Senior Vice President and General Manager of America Online's Personal Finance business, and a reporter and staff writer for Forbes magazine. He graduated magna cum laude from the University of Pennsylvania's Wharton School with a bachelor's degree in Economics and also holds an MBA from Stanford University's Graduate School of Business.
- WHITNEY TILSON is the cofounder of hedge funds Kase Capital and T2 Partners, the Tilson Mutual Funds, Value Investor Media, Inc. and the Value Investing Congress. He coauthored the book, More Mortgage Meltdown: 6 Ways to Profit in These Bad Times, is a CNBC Contributor, has written for Forbes, the Financial Times, Kiplinger's, the Motley Fool and TheStreet.com, and was one of the authors of Poor Charlie's Almanack, the definitive book on Berkshire Hathaway Vice Chairman Charlie Munger. He was one of five investors included in SmartMoney's 2006 "Power 30," and was named by Institutional Investor in 2007 as one of "20 Rising Stars." Previously, Mr. Tilson was a founding member of Teach for America and the Initiative for a Competitive Inner City, and was a consultant at The Boston Consulting Group. He received an MBA with High Distinction from the Harvard Business School and graduated magna cum laude from Harvard College with a bachelor's degree in Government.
Book Details
- Hardcover: 336 pages
- Publisher: Wiley; 1 edition (April 29, 2013)
- Language: English
- ISBN-10: 0470479779
- ISBN-13: 978-0470479773
- Product Dimensions: 9.2 x 6.5 x 1 inches
- List Price: $45.00