Authors: Bruce C. N. Greenwald, Judd Kahn, Paul D. Sonkin, Michael van Biema
ISBN-13: 9780471463399, ISBN-10: 0471463396
Format: Paperback
Publisher: Wiley, John & Sons, Incorporated
Date Published: January 2004
Edition: (Non-applicable)
BRUCE C. N. GREENWALD is the Robert Heilbrunn Professor of Finance and Asset Management at Columbia University Graduate School of Business. A leading authority on value investing, productivity, and the economics of information, he teaches executive seminars on value investing for professional investors from leading Wall Street firms. He holds a PhD in economics from MIT.
JUDD KAHN has taught history, served in city government, and worked as a securities analyst, a CFO, and a management consultant. He has a PhD in history from the University of California, Berkeley.
PAUL D. SONKIN is the investment manager of the Hummingbird Value Fund. He has worked at the SEC, Goldman Sachs, Royce Funds, and First Manhattan Company. He holds an MBA from Columbia, where he teaches courses on applied value investing.
MICHAEL van BIEMA is a member of the finance faculty of Columbia Business School, where he teaches corporate finance, entrepreneurial finance, and value investing. Prior to joining the faculty of Columbia, he was a principal at the RONIN Corporation, a management consulting firm, and the cofounder of several technology companies. He has a PhD from Columbia in computer science.
All four authors are members of Morningside Value Investors, LLC, an investment advisory firm.
From the "guru to Wall Street's gurus" comes the fundamental techniques of value investing and their applications
Bruce Greenwald is one of the leading authorities on value investing. Some of the savviest people on Wall Street have taken his Columbia Business School executive education course on the subject. Now this dynamic and popular teacher, with some colleagues, reveals the fundamental principles of value investing, the one investment technique that has proven itself consistently over time. After covering general techniques of value investing, the book proceeds to illustrate their applications through profiles of Warren Buffett, Michael Price, Mario Gabellio, and other successful value investors. A number of case studies highlight the techniques in practice.
Bruce C. N. Greenwald (New York, NY) is the Robert Heilbrunn Professor of Finance and Asset Management at Columbia University. Judd Kahn, PhD (New York, NY), is a member of Morningside Value Investors. Paul D. Sonkin (New York, NY) is the investment manager of the Hummingbird Value Fund. Michael van Biema (New York, NY) is an Assistant Professor at the Graduate School of Business, Columbia University.
No one can doubt there's an urgent need to think clearly about investing, since many investors in Silicon Valley companies have suffered a stock market decline comparable to the Crash of '29. The burned investor could find no better starting place than this superb book by four New York City value investors, all descended from the master of value investing, Benjamin Graham.... They have written one of the most intelligent overviews of investing I've ever read, combining analytical rigor with intuitive description.
Preface to the Paperback Edition | ix | |
Preface to the First Edition | xv | |
Part I | An Introduction to Value Investing | |
1 | Value Investing: Definitions, Distinctions, Results, Risks, and Principles | 3 |
2 | Searching for Value: Fish Where the Fish Are | 17 |
Part II | Three Sources of Value | |
3 | Valuation in Principle, Valuation in Practice | 31 |
Appendix | The Present Value of Future Cash Flows | 48 |
4 | Valuing the Assets: From Book Value to Reproduction Costs | 51 |
5 | Earnings Power Value: Assets Plus Franchise | 71 |
Appendix | The Value of Brands--Less than Meets the Eye? | 86 |
6 | A Wonderful Little Franchise: The Earnings Power of WD-40 | 89 |
7 | Inside Intel: The Value of Growth within the Franchise | 107 |
Appendix | Valuation Algebra: Return on Capital, Cost of Capital, and Growth | 138 |
8 | Constructing the Portfolio: Risk, Diversification, and Default Strategies | 147 |
Part III | Value Investing in Practice: Profiles of Eight Value Investors | |
9 | Warren Buffett: Investing Is Allocating Capital | 161 |
10 | Mario Gabelli: Discovering and Unlocking the Private Market Value | 197 |
11 | Glenn Greenberg: Investigate, Concentrate, and--Watch That Basket | 211 |
12 | Robert H. Heilbrunn: Investing in Investors | 225 |
13 | Seth Klarman: Distressed Sellers, Absent Buyers | 231 |
14 | Michael Price: Discipline, Patience, Focus, and Power | 245 |
15 | Walter and Edwin Schloss: Keep It Simple, and Cheap | 263 |
16 | Paul D. Sonkin: Small Is Beautiful, Especially When It's Ugly | 277 |
References | 293 | |
Acknowledgments | 296 | |
Index | 297 |