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- Wiley
More About This Title The Art of Value Investing: How the World's Best Investors Beat the Market
English
"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.
English
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.
English
Introduction 1
Chapter 1 “All Sensible Investing Is Value Investing” 5
What It Means to Be a Value Investor 6
Does Quality Matter? 13
The Value of Growth 19
The Value Mindset 25
Part One Field of Play 33
Chapter 2 Circle of Competence 35
The Right Size 36
Industry Preference 45
Where in the World? 57
Chapter 3 Deficient Market Hypothesis 65
The Human Element 66
It’s a Matter of Time 74
Chapter 4 Fertile Ground 81
In Search of Uncertainty 82
Special Situations 86
Operating Turnarounds 93
Chapter 5 Generating Ideas 99
Behind the Screen 99
Follow the Lead 106
Reliable Sources 111
Part Two Building the Case 115
Chapter 6 Cutting Through the Noise 117
Second-Level Thinking 118
Macro versus Micro 120
Business First 127
What Quality Means 131
Crunching the Numbers 135
What Could Go Wrong? 139
From the Top 147
How Important Is Management? 147
Handicapping the Jockeys 149
Red Flags 157
Catalysts 164
Getting It Done 169
Organizing Principles 174
Chapter 7 Getting to Yes 183
Cash (Flow) Is King 184
Multiple Angles 190
The Informed Buyer 192
Model Behavior 194
Playing the Odds 199
Theories of Relativity 202
Pulling the Trigger 206
Part Three Active Management 213
Chapter 8 The Portfolio 215
Concentration versus Diversification 215
The Size That Fits 222
Cognizance of Correlation 227
Chapter 9 Playing the Hand 233
Trading Mentality 233
Dealing with Adversity 239
Taking a Stand 248
Attracting Activists’ Attention 251
Chapter 10 Guarding Against Risk 257
Margin of Safety 258
Building a Position 261
Cash Management 263
Midas Touch 267
Hedging Bets 268
To Short or Not to Short? 268
Value Destroyers 271
Portfolio Hedging 276
Is Shorting Inherently Evil? 277
Chapter 11 Making the Sale 281
Why to Sell 282
Selling by the Numbers 286
Getting the Timing Right 290
Sale Process 293
Part four Of Sound Mind 297
Chapter 12 Of Sound Mind 299
Competitive Spirit 300
Independent Thought 303
Perpetual Student 306
To Err Is Human 309
Be Ever So Humble 312
The Final Word 315
About the Authors 317
Index 319
English
“John Heins and Whitney Tilson, co-founders of the Value Investor Insight newsletter, have done a thorough job of explaining how to look for stocks that are trading at significant discounts to what they are worth — the concept known as the value style of investing.…the authors present a clear framework for ferreting out undervalued companies.”
—The New York Times
“[The Art of Value Investing] is packed with invaluable insights and is relevant to both the novice and the experienced investor. …This book provides a valuable contribution to the industry literature on value investing. It is well written, well organized, and quite enjoyable. The Art of Value Investing should be read by all investors who are seriously interested in enhancing their understanding of this important field.”
—CFA Institute Book Review
