The Financial Times Guide to Value Investing How to Become a Disciplined Investor

by Arnold, Glen

• ISBN13: 9780273724520
• ISBN10: 0273724525
• Edition: 2nd
• Format: Paperback
• Copyright: 2009-04-23
• Publisher: FT Press

Summary

What are the key principles that have served great investors for over half a century?

Table of Contents

Preface	p. xi
Introduction - A Challenge	p. xiii
Investment Philosophies	p. 1
Peter Lynch's niche investing	p. 3
The private investor versus the professional fund manager
The Characteristics of good niche stocks
Other factors in managing a portfolio
What he avoids
When to sell
Difficulties and drawbacks of this approach
Summary of Peter Lynch's approach
John Neff's sophisticated low price-earnings ratio investing	p. 28
Principles
Finding valuable low P/E ratio stocks
What he avoids
Selling policy
Difficulties and drawbacks of this approach
Key principles of Neff's approach
Benjamin Graham - the father of modern security analysis	p. 49
Early influences
Key elements of his philosophy
Three types of share buyers
Make market fluctuations your friend
What he avoids
Benjamin Graham's three forms of value investing	p. 71
Current asset value investing
Defensive value investing
Enterprising value investing
When to sell
Difficulties and drawbacks of Graham's approach
Key principles of Graham's approaches
Philip Fisher's bonanza investing	p. 94
Key elements of Fisher's approach
What he avoids
When to Sell
Difficulties and drawbacks of this approach
Summary of Fisher's approach
Warren Buffett's and Charles Munger's business perspective investing - part 1	p. 132
The investment record
Warren Buffett - the road to being a billionaire
GEICO
A 'peasant' at Graham-Newman
The Buffett partnerships
Amex and Disney
Bull market
Berkshire Hathaway
The Washington Post Company
Return to GEICO
Non-quoted businesses
See's Candy
Nebraska Furniture Mart
Charles Munger - from store assistant to billionaire
The evolution of an investment philosophy
Investment principles
Warren Buffett's and Charles Munger's business perspective investing - part 2	p. 175
Economic franchise
Indications of honest and competent managers
What to avoid
When to sell
Difficulties and drawbacks of this approach
Key principles of Buffett's and Munger's approach
The Valuegrowth Method	p. 213
The Valuegrowth investor	p. 215
Expensive distractions
The Valuegrowth model
Growth of owner earnings
Margin of safety
Low diversification
Holding for the very long term
Character traits and personal qualities
Key principles of Valuegrowth investing
Appendix 8.1 - a discussion on the effect of taxation on the discount rate	p. 246
The analysis of industries	p. 247
The competitive floor
The five competitive forces
Threat of entry
Intensity of rivalry of existing companies
The threat from substitutes
Buyer (customer) power
Supplier Power
Industry evolution
Key elements of industry analysis
Competitive resource analysis	p. 277
The TRRACK system
What makes resources extraordinary?
Investment in resources
Leveraging resources
Key elements of competitive resource analysis
Glossary	p. 309
References	p. 319
Bibliography	p. 350
Index	p. 359
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