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Applied Value Investing: The Practical Application of Benjamin Graham and Warren Buffett's Valuation Principles to Acquisitions, Catastrophe Pricing ... Execution
Since Benjamin Graham fathered value investing in the 1930s, the method of analysis has spawned a large number of highly successful investors, such as Graham’s own former student and employee, Warren Buffett, who is regarded as one of the most successful investors of modern times.
Over the years, numerous books have been published on Benjamin Graham’s approach. Most of these books present different interpretations of value investing and are generally introductory based. Until now, there has not been an advanced hands-on guide for investors and executives who may want to apply the powerful value investing discipline outside of stocks and bonds.
Applied Value Investing takes the same time-proven approach Graham introduced with David Dodd in their 1934 masterpiece, Security Analysis, and extends it in a variety of unique and practical ways―including mergers and acquisitions, alternative investments, and financial strategy.
This in-depth guide shows financially sophisticated readers how to use value investing in a macroinvesting framework and how to apply it to the emerging area of super catastrophe valuation. It illustrates how to put value investing to use with case studies Eddie Lampert’s acquisition of Sears Warren Buffett’s acquisitions of GEICO and General Reinsurance Corporation The recent “new economy” boom and bust, and its aftermath The underwriting of the Pepsi Play for a Billion sweepstakes Applied Value Investing also demonstrates how to incorporate the cornerstones of valuation into an integrated business framework that can be used to assess and manage a franchise (or a firm operating with a sustainable competitive advantage).
In addition to its cutting-edge applications of value investing principles, Applied Value Investing sets itself apart by drawing on material published in leading academic journals to form the foundation of its presentation. However, value investing is inherently practical, and this comprehensive resource provides helpful guidance for successfully implementing value investing strategies in the real world.
To profit like the masters you have to think like them. Applied Value Investing can open new doors to value creating opportunities.
Over the years, numerous books have been published on Benjamin Graham’s approach. Most of these books present different interpretations of value investing and are generally introductory based. Until now, there has not been an advanced hands-on guide for investors and executives who may want to apply the powerful value investing discipline outside of stocks and bonds.
Applied Value Investing takes the same time-proven approach Graham introduced with David Dodd in their 1934 masterpiece, Security Analysis, and extends it in a variety of unique and practical ways―including mergers and acquisitions, alternative investments, and financial strategy.
This in-depth guide shows financially sophisticated readers how to use value investing in a macroinvesting framework and how to apply it to the emerging area of super catastrophe valuation. It illustrates how to put value investing to use with case studies Eddie Lampert’s acquisition of Sears Warren Buffett’s acquisitions of GEICO and General Reinsurance Corporation The recent “new economy” boom and bust, and its aftermath The underwriting of the Pepsi Play for a Billion sweepstakes Applied Value Investing also demonstrates how to incorporate the cornerstones of valuation into an integrated business framework that can be used to assess and manage a franchise (or a firm operating with a sustainable competitive advantage).
In addition to its cutting-edge applications of value investing principles, Applied Value Investing sets itself apart by drawing on material published in leading academic journals to form the foundation of its presentation. However, value investing is inherently practical, and this comprehensive resource provides helpful guidance for successfully implementing value investing strategies in the real world.
To profit like the masters you have to think like them. Applied Value Investing can open new doors to value creating opportunities.
304 pages, Hardcover
First published July 24, 2009
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Displaying 1 - 6 of 6 reviews
July 16, 2016
A well presented introduction to Graham & Dodd-style valuation and investment framework. Goes through most of the major considerations and gives ideas about how a solid foundation should be built.
Not very in-depth though and has some serious flaws in its valuation-assumptions, so I wouldn't recommend it exclusively. However, a good complement (to Security Analysis or The Intelligent Investor) for G&D-fans who'd like to get started with practical valuation. Just don't read too much into the author's "guesstimates" in valuation, see it as his way of showing how the process is accomplished.
As a sidenote I should say that I bought this book because of Seth Klarman's blessing on the cover, and it's an understatement to say I'm disappointed. His comment "This thought-provoking work takes value investing to the next level" is utterly misleading. My hope is that it was taken out of context or simply a HUGE favor to the author, because it certainly does NOT take value investing to the next level. EDIT: I realized after reading the inside of the cover that Klarman was talking about the book's application of using value investing in corporate stragegy and decision-making, so OK; it was taken somewhat out of context.
Not very in-depth though and has some serious flaws in its valuation-assumptions, so I wouldn't recommend it exclusively. However, a good complement (to Security Analysis or The Intelligent Investor) for G&D-fans who'd like to get started with practical valuation. Just don't read too much into the author's "guesstimates" in valuation, see it as his way of showing how the process is accomplished.
As a sidenote I should say that I bought this book because of Seth Klarman's blessing on the cover, and it's an understatement to say I'm disappointed. His comment "This thought-provoking work takes value investing to the next level" is utterly misleading. My hope is that it was taken out of context or simply a HUGE favor to the author, because it certainly does NOT take value investing to the next level. EDIT: I realized after reading the inside of the cover that Klarman was talking about the book's application of using value investing in corporate stragegy and decision-making, so OK; it was taken somewhat out of context.
May 28, 2020
Good handbook. Very interesting references to Austrian School, the tech boom. And good tool for calculating value of companies. However you need to be deeply interested in the field to find this book readable.
August 16, 2020
Excellent
Great book for those looking to understand how to apply Graham and Dodd’s teachings. Easy to understand and follow. Very recommended.
Great book for those looking to understand how to apply Graham and Dodd’s teachings. Easy to understand and follow. Very recommended.
August 7, 2011
Good second-level book for understanding value investing. Very practical chapters that walk through the valuation process, plus an insightful chapter on the macro-view of market activity according to the Austrian theory of the business cycle. Still, it was difficult to make it through with little background in the subject already. I'm reading The New Buffettology now, which is written much more simply. I think I'll come back to this one after I've learned a little more.
January 27, 2011
Excellent book with walk-through case studies of valuation using Ben Graham methods.
May 16, 2015
Really enjoyed the walk through case studies of well known investments that follow a value/ margin of safety approach.
Displaying 1 - 6 of 6 reviews