Value Investing

Explore the modern extension of value investing in this essential text from "the guru to Wall Street's gurus"

The substantially rewritten Second Edition of Value Investing: From Graham to Buffett and Beyond delivers an incisive and refined approach to investing grounded on almost 100 years of history, beginning with Graham and Dodd. Founded on the value investing course taught for almost twenty-five years by co-author Bruce Greenwald at Columbia Business School, the book helps investors consistently land on the profitable side of the trade.

Readers will learn how to search for underpriced securities, value them accurately, hone a research strategy, and apply it all in the context of a risk management practice that mitigates the chance of a permanent loss of capital.

The new edition includes:

• Two innovative new chapters discussing the valuation of growth stocks, a perennial problem for investors in the Graham and Dodd tradition
• New profiles of successful investors, including Tom Russo, Paul Hilal, and Andrew Weiss

• An extended discussion of risk management, including modern best practices in an environment where it is often divorced from individual security selection

  A substantive expansion of an already highly regarded book, Value Investing: From Graham to Buffett and Beyond is the premier text discussing the application of timeless investing principles within a transformed economic environment. It is an essential resource for portfolio managers, retail and institutional investors, and anyone else with a professional or personal interest in securities valuation and investing.

  Successful value investing practitioners have graced both the course and this book with presentations describing what they really do when they are at work. Find brief descriptions of their practices within, and video presentations available on the web site that accompanies this volume:

  http://www.wiley.com/go/greenwald/valueinvesting2e

  Autorentext

  BRUCE C. GREENWALD was Founding Director of the Heilbrunn Center for Graham and Dodd Investing at Columbia Business School from 2001 until his retirement in 2019. In addition to training thousands of students in the mysteries of value investing, he taught oversubscribed courses on the economics of business strategy and globalization. His book Competition Demystified, published in 2005, is still in print. He has also been Chairman of Paradigm Capital Management since its founding in 2007 and the Director of Research at First Eagle Funds from 2007-11, serving as a senior advisor since. JUDD KAHN is currently a partner in Davidson Kahn Capital Management. He started his professional career as a historian, worked as a consultant and financial executive, and has been involved in investment management since 2000. He has a doctorate in history from UC Berkeley. ERIN BELLISSIMO is the Managing Director of Notre Dame's Institute for Global Investing. She was a founding director of Columbia's Heilbrunn Center, has worked in hedge funds and banking, and sits on the board of Girls Who Invest. She has a BSBA from Bucknell and an MBA from the Wharton School at the University of Pennsylvania. MARK COOPER is CIO and Co-founder of MAC Alpha Capital Management and an adjunct professor at Columbia Business School. He previously worked at First Eagle Investment Management, PIMCO, Omega Advisors, Pequot Capital, and JPMorgan. He holds an MBA from Columbia Business School and a SB from MIT. TANO SANTOS is the David L. and Elsie M. Dodd Professor of Finance and the Faculty Director of Columbia's Heilbrunn Center. He has succeeded Bruce Greenwald as the professor teaching the value investing course. He has a doctorate in economics from the University of Chicago.

  Zusammenfassung

• A second edition to the classic and widely popular Value Investing, which was hailed as better than Benjamin Graham s 1950, The Intelligent Investor.

  Inhalt

  Dedication v

  Acknowledgments ix

  Introduction xi

  1 Value Investing: Definitions, Distinctions, Results, Risks, Principles 1

  2 Searching for Value: Finding the Right Side of the Trade 17

  3 Valuation in Principle, Valuation in Practice 41

  4 Valuing the Assets: From Book Value to Replacement Costs 71

  Example One: Hudson General 91

  5 Earnings Power Value 103

  Example Two: Magna International 123

  6 Growth 141

  7 "Good" Businesses 161

  8 The Valuation of Franchise Stocks 187

  Appendix to Chapter 8: Return Calculations for Franchise Businesses 217

  Example Three: WD-40 231

  Example Four: Intel 253

  9 Research Strategy 301

  10 Risk Management and Building Portfolios 321

  Investor Profiles 339

  Warren Buffett 343

  Robert H. Heilbrunn 375

  Walter and Edwin Schloss 381

  Mario Gabelli 393

  Glenn Greenberg 395

  Paul Hilal 399

  Jan Hummel 403

  Seth Klarman 407

  Michael Price 411

  Thomas Russo 415

  Andrew Weiss 419

  Index 423