[eBook Code] The Art of Value Investing (eBook Code, 1st)

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