Buying at the Point of Maximum Pessimism : Six Value Investing Trends from China to Oil to Agriculture

by Phillips, Scott; Templeton, Lauren

• ISBN13: 9780137038497
• ISBN10: 0137038496
• Edition: 1st
• Format: Hardcover
• Copyright: 2010-05-05
• Publisher: FT Press

Summary

The world's savviest investors are those who can recognize when the herd is running headlong in the wrong direction and can take advantage of their fear and confusion. That's never been truer than it is right now. Now, there's a book that will show you how to earn the same outside returns these savvy value investors do.Buying at the Point of Maximum Pessimismwill help you uncover enormous value opportunities that keep on emerging even as the economic crisis keeps spreading. Lauren Templeton Capital Management principal D. Scott Phillips, Jr., co-author of the best-sellerInvesting the Templeton Way, has systematically updated the proven techniques of value investing for today's radically new markets. Phillips carefully identifies crucial changes underway in the financial system and investing landscape, and offers investing solutions that respond to today's crucial new risks. You'll learn how to invest in markets facing an increased government role and lower access to capital; manage growing risk of inflation spikes; scavenge for profits in distressed sectors; find winning opportunities overseas; and much more. Every market offers opportunity to those who can find value where others aren't looking. Today, there's no more important investing skill andBuying at the Point of Maximum Pessimismis the one book that will teach it to you.

Author Biography

He is a principal and portfolio manager at Lauren Templeton Capital Management, LLC, an alternative and traditional asset management firm that invests based on the principles of the legendary value investor Sir John Templeton.

Before joining the firm, he served as research analyst and consultant to Green Cay Asset Management, where he was lead research analyst on the Siebels Hard Asset Fund, a long/short equity hedge fund focused on hard assets and commodities. With Lauren C. Templeton, he coauthored Investing the Templeton Way.

He currently writes the globally distributed quarterly newsletter, The Maximum Pessimism Report.

Table of Contents

Foreword	p. xiii
Acknowledgments	p. xv
About the Author	p. xvi
Introduction	p. 1
The Fed Sentences the Consumer to Debtor's Prison	p. 7
An Economic Recovery Built on Borrowed Money	p. 8
The Fed's Potion of Low Rates and Rising Home Prices Becomes an Economic Elixir	p. 14
A Chicken in Every Pot? Try a Hummer in Every Garage	p. 15
The Three Cs of Credit Give Way to Financial Innovation	p. 19
The Biggest Gamblers Go ôAll Inö on the Housing Bet	p. 35
Trouble in Paradise	p. 37
The Canary Died Unheard from the Boardrooms, Yachts, and Golf Courses	p. 39
The Credit Bubble Draws in Every Last Bull	p. 46
Financial Chaos	p. 53
The Crisis Moves from Subprime to Prime Time	p. 61
Quis Custodiet Ipsos Custodes?	p. 71
An Alphabet Soup of Rescue Acronyms Will Save Us	p. 72
Strategy Number Two: Spend Our Way Out of a Spending Problem	p. 75
The Vestigial Effects of the Crisis Come into Focus	p. 79
The Visible Hand Is Coming into View, and It's All Thumbs	p. 92
A New Landscape for Investors	p. 101
Entrepreneurialism Is Thriving in Many Key Emerging Markets	p. 105
Crisis Is an Opportunity for Those in a Position to Seize the Opportunity	p. 111
The New Landscape	p. 113
China: Ready for Prime Time	p. 117
A Culture Well Suited for Capitalism	p. 119
Putting Those Rainy-Day Savings to Work in the Worst Storm of the Past Century	p. 122
Urbanization Is the Growth Engine	p. 126
The Path Toward Consumerism and the Domestic Economy	p. 128
Prime-Time Products	p. 135
Proteins and Agribusiness: Billions and Billions to Be Served	p. 141
Where's the Beef (and Chicken and Pork, Too)?	p. 142
Eating Good in the Global Neighborhood	p. 146
Brazil Has the Competitive Advantages in Agribusiness	p. 152
Strong Fundamentals Across the Value Chain	p. 161
Formula for Success: Rise Early, Work Hard, Strike Oil	p. 165
In the Long Term, Healthy Demand Meets Higher Cost Supply	p. 170
Market Distortions from the Fed's Loose Credit and Easy Money	p. 179
Seeking Alternatives in the Hydrocarbon Space	p. 191
An All-Too-Common Tragedy	p. 201
Human Behavior Is Timeless	p. 202
Strong Demand Underscores the Overexploitation	p. 206
A Tragedy Leads to an Opportunity	p. 210
What Happens When 700 Million Students Want Extra Help?	p. 217
Spending on Education Takes Precedence in Many Emerging-Market Households	p. 220
The Role of Technology and Innovation	p. 223
10 Million Students Applying for 6 Million Spots in College-No Pressure	p. 225
Continuing Education	p. 227
Financial Crisis Portends Continued Growth in the Emerging-Market Education Services	p. 230
Education Plays and Their Fundamental Dynamics	p. 234
A Rare Opportunity	p. 241
Demand for Global Technology Remains Strong	p. 242
It's Not Easy Being Green	p. 245
There Is Oil in the Middle East; There Are Rare Earths in China	p. 249
Index	p. 257
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