{"product_id":"common-stocks-and-common-sense-isbn-9781119913245","title":"Common Stocks and Common Sense","description":"\u003cp\u003e\u003cb\u003eAn incisive and comprehensive exploration of value investing in the real world\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eIn the newly revised second edition of \u003ci\u003eCommon Stocks and Common Sense: The Strategies, Analyses, Decisions, and Emotions of a Particularly Successful Value Investor,\u003c\/i\u003e celebrated Wall Street value investor Ed Wachenheim walks readers through eleven revealing case studies of real-world investments made by the author's firm, Greenhaven Associates. Each case uncovers unique insights into the technical and human elements that go into any profitable investment transaction.\u003c\/p\u003e \u003cp\u003eThis latest edition includes brand-new content with coverage of the electric vehicle (EV) market, and in-depth discussions of General Motors. Refreshed and renewed content also appears throughout the book, with several new investment theses appearing for the first time in this edition. Readers will also find:\u003c\/p\u003e \u003cul\u003e \u003cli\u003eAn emphasis on the softer, human side of value investing, including the biases and emotions that can get in the way of successful investments\u003c\/li\u003e \u003cli\u003eNew material covering emerging and high-growth industries\u003c\/li\u003e \u003cli\u003eValue investing advice that goes beyond balance sheets and technical ratios\u003c\/li\u003e \u003c\/ul\u003e \u003cp\u003eAn essential handbook for retail value investors everywhere, \u003ci\u003eCommon Stocks and Common Sense\u003c\/i\u003e will also earn a place on the bookshelves of portfolio and fund managers, securities analysts, and anyone else with a personal or professional interest in the financial markets.\u003c\/p\u003e \u003cp\u003eIntroduction ix\u003c\/p\u003e \u003cp\u003e\u003cb\u003e1 My Approach to Investing \u003c\/b\u003e\u003cb\u003e1\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003e2 The Brief Story of My Life \u003c\/b\u003e\u003cb\u003e17\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003e3 IBM \u003c\/b\u003e\u003cb\u003e31\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eSuccessful investing is about predicting the future more accurately than the majority of other investors; we predict a change in IBM’s cost structure\u003c\/p\u003e \u003cp\u003e\u003cb\u003e4 Interstate Bakeries \u003c\/b\u003e\u003cb\u003e49\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eSuccessful investing often is heavily dependent on the capabilities and incentives of corporate leadership\u003c\/p\u003e \u003cp\u003e\u003cb\u003e5 U.S. Home Corporation \u003c\/b\u003e\u003cb\u003e63\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eInvestors can become frustrated when their swans are priced as if they are ugly ducks\u003c\/p\u003e \u003cp\u003e\u003cb\u003e6 Centex Corporation \u003c\/b\u003e\u003cb\u003e67\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eLarge profits can be earned by successfully predicting a major positive change in the fundamentals of a company or an industry\u003c\/p\u003e \u003cp\u003e\u003cb\u003e7 Union Pacific (Railroad) \u003c\/b\u003e\u003cb\u003e79\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eInvestors often do not adequately differentiate between shortterm discrete problems and long-term systemic weaknesses\u003c\/p\u003e \u003cp\u003e\u003cb\u003e8 American International Group (AIG) \u003c\/b\u003e\u003cb\u003e91\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eI went to bed with Miss America and woke up with a witch; this can happen to even the most careful of investors\u003c\/p\u003e \u003cp\u003e\u003cb\u003e9 Lowe’s \u003c\/b\u003e\u003cb\u003e101\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eUsing common-sense logic, we conclude there is a high probability that the U.S. housing market will improve markedly in the near future; investing is logical and probabilistic\u003c\/p\u003e \u003cp\u003e\u003cb\u003e10 Whirlpool Corporation \u003c\/b\u003e\u003cb\u003e113\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eExtraordinary patience is required when a deeply undervalued stock continually remains deeply undervalued\u003c\/p\u003e \u003cp\u003e\u003cb\u003e11 Boeing \u003c\/b\u003e\u003cb\u003e137\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eOpportunities can occur when great companies develop temporary problems\u003c\/p\u003e \u003cp\u003e\u003cb\u003e12 Southwest Airlines \u003c\/b\u003e\u003cb\u003e157\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eWhen tight markets lead to sharply higher prices for goods or services, earnings and share prices can become buoyant, even for normally unattractive businesses\u003c\/p\u003e \u003cp\u003e\u003cb\u003e13 Goldman Sachs \u003c\/b\u003e\u003cb\u003e169\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eLarge profits can be earned when perceptions temporarily differ from realities\u003c\/p\u003e \u003cp\u003e\u003cb\u003e14 General Motors \u003c\/b\u003e\u003cb\u003e187\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eOne must rely on judgment and a sixth sense when the fundamentals of a company become unclear\u003c\/p\u003e \u003cp\u003e\u003cb\u003e15 A Letter to Jack Elgart \u003c\/b\u003e\u003cb\u003e221\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eA letter that summarizes my approach to investing and that includes a number of do’s and don’ts I found useful in my career\u003c\/p\u003e \u003cp\u003eAbout the Author 233\u003c\/p\u003e \u003cp\u003eIndex 235\u003c\/p\u003e \u003cp\u003e\u003cb\u003eEDGAR WACHENHEIM III\u003c\/b\u003e is Founder, Chairman, and CEO of Greenhaven Associates and one of Wall Street’s preeminent investors. Greenhaven manages approximately $8.5 billion in funds for wealthy families, college endowments, and charitable foundations. Wachenheim is a graduate of Williams College and Harvard Business School and is a former securities analyst at Goldman Sachs. \u003c\/p\u003e  \u003cp\u003e While more academic works on common stock investing would have you believe that the discipline is largely mathematical and analytical, any accurate and realistic study of the subject must include a detailed examination of the “softer” side of stock selection and investment, including the feelings, emotions, and biases that can turn an otherwise successful transaction into an unsuccessful one. \u003c\/p\u003e \u003cp\u003eIn the newly revised second edition of the popular book, \u003ci\u003eCommon Stocks and Common Sense: The Strategies, Analyses, Decisions, and Emotions of a Particularly Successful Value Investor\u003c\/i\u003e, renowned Wall Street investor Ed Wachenheim delivers a startlingly insightful and practical take on the investment strategies and experiences that have allowed the author to enjoy an annual return of close to 18% between 1990 and 2021.  \u003c\/p\u003e\u003cp\u003eIn the book, readers will find eleven in-depth case studies, each detailing a particular investment made by Wachenheim and explaining the investing process from start to finish. Each case includes a particular emphasis on the human side of investing: the emotions, intensities, and pressures that often dictate how well an individual investor can ride out the ups and downs of the market.  \u003c\/p\u003e\u003cp\u003eThe latest edition offers brand-new content on the electric vehicle (EV) market and an in-depth discussion on General Motors. Revamped and refreshed content appears throughout, and new and updated case studies showcasing real world investments made by the author are also included.  \u003c\/p\u003e\u003cp\u003eAn essential handbook for retail investors, fund and portfolio managers, and securities analysts, \u003ci\u003eCommon Stocks and Common Sense\u003c\/i\u003e will earn a place in the libraries of anyone with a professional or personal interest in value investing.   \u003c\/p\u003e\u003cp\u003e\u003cb\u003ePRAISE FOR \u003ci\u003eCommon Stocks \u0026amp; Common Sense \u003c\/i\u003e\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e“Ed Wachenheim has been an extraordinarily successful value investor for decades, and in this well written and engrossing book, he explains his investment approach through case studies, including investments that went well but also some that went badly. The key takeaways are that success requires intense commitment to research, a probabilistic mindset, and the temperament to remain rational in the face of market irrationality.”\u003cbr\u003e\u003cb\u003e—ROBERT E. RUBIN,\u003c\/b\u003e Former U.S. Secretary of the Treasury\u003c\/p\u003e\u003cp\u003e “Ed Wachenheim often emphasizes the great value of using one’s ‘common sense’ as an investor. But after he describes how he has analyzed every imaginable dimension and variable of several organizations before deciding whether to buy their stock, we quickly realize that there is nothing even remotely ‘common’ about his ability to be both prescient and wise. This is a fascinating and enlightening book that is completely accessible to the layman, and should be required reading for professionals.”\u003cbr\u003e\u003cb\u003e—NEIL L. RUDENSTINE,\u003c\/b\u003e Former President of Harvard University  \u003c\/p\u003e\u003cp\u003e“Ed Wachenheim is a very successful investor who has never sought the limelight. He has written a book on investing which is a kind of confessional, talking openly about his stock picking experiences with humor and candor. Reading about his odyssey over the past several decades will prove to be a useful apprenticeship for both the novice and the experienced investor. I learned a lot and I’ve been doing it longer than he has.”\u003cbr\u003e\u003cb\u003e—BYRON R. WIEN,\u003c\/b\u003e Vice Chairman, Blackstone Group LP\u003c\/p\u003e","brand":"Wiley","offers":[{"title":"Default Title","offer_id":47988950794469,"sku":"NP9781119913245","price":34.95,"currency_code":"USD","in_stock":false}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/1842\/7735\/files\/9781119913245.jpg?v=1761782179","url":"https:\/\/k12savings.com\/es\/products\/common-stocks-and-common-sense-isbn-9781119913245","provider":"K12savings","version":"1.0","type":"link"}