"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." (DAVID A. SYLVESTER, Published Sunday, Oct. 21, 2001, in the San Jose Mercury News) "...Greenwald is an excellent guide on this subject..." (Sunday Times, 21 October, 2001)
"...Greenwald is an excellent guide on this subject..." (Sunday Times, 21 October, 2001) "...contemporary advice can be found in Bruce Greenwald′s excellent Value Investing..." (Sunday Times 23 December 2001)
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From the Inside Flap
Described by the New York Times as the "guru to Wall Street′s gurus," Bruce Greenwald is a leading authority on value investing. His courses and seminars on the subject have drawn some of the savviest people in the investment world. Now, along with some colleagues, Greenwald reveals the fundamental principles that have made value investing one of the most consistently profitable investment techniques. In an investment world frequently blinded by excessive optimism, short–term speculation, and other practices ranging from unsound to downright shady, value investing remains a reliable discipline even as it moves into a new century. Built on the works of Benjamin Graham, the father of security analysis, value investing is based on the premise that the underlying value of a financial security is measurable and stable, even though the market price fluctuates widely. The core of value investing is to buy securities when their market prices are significantly below their intrinsic values. Graham called the gap between price and value the "margin of safety." A large margin of safety both increases the potential return and reduces the risk of loss. In Value Investing, the authors enrich the discipline by exploring its history, explaining its underlying principles, and setting guidelines for its successful application. The book covers such indispensable issues as: ∗ Where to look for underpriced securities ∗ How to determine the intrinsic value of a stock ∗ Alternative methods for constructing a portfolio that control risk without restricting investment returns After discussing the basis of value investing, the book describes the proven techniques of some of the greatest value investors in history, including Warren Buffett, Walter Schloss, Mario Gabelli, and Michael Price. By adapting Graham′s strategies to accommodate new investment climates, each has contributed a distinctive thread to make the discipline of value investing stronger and more flexible. Value Investing is a must for any serious investor wishing to gain a better understanding of the principles and practices behind this time–tested approach. It will earn a place on the bookshelf next to Graham and Dodd′s Security Analysis and Graham′s The Intelligent Investor.
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From the Back Cover
"This book deserves a place on every serious investors shelf." FINANCIAL TIMES "A must–read for all disciples of value investing. In 1934, Graham and Dodd created fundamental security analysis. Greenwald reinforces the worth of this approach, incorporates new advances, and takes their work into the twenty–first century." Mario J. Gabelli, Chairman, Gabelli Asset Management, Inc. "The new title most deserving of your time is Value Investing . . . . Its authors aim to place their work next to Benjamin Grahams 1950 classic, The Intelligent Investor. My 1986 edition came with Warren Buffetts endorsementby far the best book on investing ever written. Value Investing is better." Robert Barker, BusinessWeek "Greenwald is an economist (PhD from MIT) who caught the value bug. He has updated and expanded Grahams ideas, and his summer seminars ($2,900 for two days) have become popular with everyone from well–known money managers to Columbia MBAs who couldnt get into Greenwalds class. But now there is a cheaper way . . . Greenwald probably wont outsell Graham, but I think he ought to." Paul Sturm, SmartMoney magazine "Greenwalds book is a lively defense of, and handbook for, value investing, complete with glimpses of how its practiced by pros like Warren Buffett and Mario Gabelli." George Mannes, TheStreet.com "Essential reading for anyone looking for a fresh perspective on analyzing companies and selecting investments." Pat Dorsey, Morningstar.com
About the Author
BRUCE C. N. GREENWALD is the Robert Heilbrunn Professor of Finance and Asset Management at Columbia University Graduate School of Business. 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. MICHAEL van BIEMA is a member of the finance faculty of Columbia Business School. 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.