Table Of ContentAbout the authorAcknowledgementsPreface1. Mastering Your EmotionsSummaryThe Impact of Emotion When InvestingBasic Concepts in Emotional Control2. The Care Of Your Stock PortfolioSummarySound Portfolio DecisionsCompany and Industry DiversificationInternational DiversificationDiversifying Larger PortfoliosTrading ActivityPortfolio Versus Individual Stock PerformanceMeasuring Performance3. Tilting the Market In Your FavorSummaryThe Time Structure of Market ReturnsDeep Behavioral CurrentsCatching the Trade Winds of the Market4. Where To Find Investment IdeasSummaryThe Universe of IdeasYour Broker or Your Barber or Your BrotherStock Screening5. Value Investing FrameworkSummaryIdentifying Undervalued StocksValue Investing versus Future Growth InvestingValue AnalysisEstimating a Value RangeThe Art of SellingPerformance ExpectationsThe Holding Period6. Making Sense of the Economy and the MarketSummaryThe Relationship Between the Market and the EconomyThe Business CycleThe Federal Deficit and MoneyMarket-wide Valuations7. Untangling Financial StatementsSummaryThe Company's FlowsThe Balance SheetMaking Financial Statements Useful: Ratio AnalysisLies, Damn Lies and Financial Statements8. In Search of ValueSummaryThe Idea Behind ValuationDividend ValuationEarnings and Other Valuation Techniques9. Conducting A Value AnalysisValuation Example 1Valuation Example 210. A Closer Look At EarningsSummaryAccounting Issues in Reported EPSCompany 7 Example11. How The Pros Implement A Valuation StrategyMutual Fund ResearchImpact of ElementsPutting it All TogetherSome Final ThoughtsThe Art and Science of Value InvestingThe Three Secrets of Value Investing: Patience, Patience and More Patience!Don't Fall into the Popularity Trap
SynopsisThe aim of value investing is to identify stocks that are undervalued and which can be expected to produce an above average return in the future. And the message from the history of investing is clear: if you successfully pursue a value investing strategy over the long term, you will earn an above average return on your portfolio. The goal of The New Value Investing is to help you identify undervalued stocks and teach you how to build your own successful value investing portfolio. Added to this, it is important to understand that value investing is inextricably linked with behavioral finance, and research advances in this area in recent years strengthen the case for value investing. The author explains how stock prices are determined by emotional crowds, how this leads to mispriced stocks and opportunities for the value investor, and how you can harness the insights of behavioral finance to improve your value investing approach. As you work through this book, the author shows how to follow the path from analysis of the economy, to the industry, to company financial statements, to creating a value range for a company's stock. You will learn: - How to remove emotion from your investment process. - The essential elements of portfolio construction. - What a value investor should observe in the wider economy and the market. - Where to find investment ideas. - How to read a company's financial statements from a value investing perspective. - Dividend valuation, earnings valuation and other valuation techniques. - How to undertake a full valuation analysis, with two complete worked examples of stock valuation for real-life companies. - What professional value investors at investment funds analyse and how they make their decisions. Value investing is within everyone's reach, so why doesn't everyone use it? The key is patience. The approach works over the long term if you stick with it and the result could be extra hundreds, thousands or millions in your portfolio at the end of your investment horizon., The aim of value investing is to identify stocks that are undervalued and which can be expected to produce an above average return in the future. And the message from the history of investing is clear: if you successfully pursue a value investing strategy over the long term, you will earn an above average return on your portfolio. The goal of The New Value Investing is to help you identify undervalued stocks and teach you how to build your own successful value investing portfolio. Added to this, it is important to understand that value investing is inextricably linked with behavioral finance, and research advances in this area in recent years strengthen the case for value investing. The author explains how stock prices are determined by emotional crowds, how this leads to mispriced stocks and opportunities for the value investor, and how you can harness the insights of behavioral finance to improve your value investing approach. As you work through this book, the author shows how to follow the path from analysis of the economy, to the industry, to company financial statements, to creating a value range for a company's stock. You will learn: -- How to remove emotion from your investment process. -- The essential elements of portfolio construction. -- What a value investor should observe in the wider economy and the market. -- Where to find investment ideas. -- How to read a company's financial statements from a value investing perspective. -- Dividend valuation, earnings valuation and other valuation techniques. -- How to undertake a full valuation analysis, with two complete worked examples of stock valuation for real-life companies. -- What professional value investors at investment funds analyse and how they make their decisions. Value investing is within everyone's reach, so why doesn't everyone use it? The key is patience. The approach works over the long term if you stick with it and the result could be extra hundreds, thousands or millions in your portfolio at the end of your investment horizon.