{"product_id":"the-business-of-value-investing-isbn-9780470444481","title":"The Business of Value Investing","description":"\u003cp\u003eA blueprint to successful value investing\u003c\/p\u003e \u003cp\u003eSuccessful value investors have an ingrained mental framework through which all investments decisions are made. This framework, which stems from the father of value investing, Benjamin Graham-who believed that investment is most intelligent when it is most businesslike-can put you in a better position to improve the overall performance of your portfolio.\u003c\/p\u003e \u003cp\u003eWritten by Sham Gad-founder of the Gad Partners Funds, a value-focused investment partnership inspired by the 1950s Buffett Partnerships-\u003ci\u003eThe Business of Value Investing\u003c\/i\u003e effectively examines the fundamental tenants of this approach and skillfully illustrates the six essential elements of the entire process. Opening with some informative discussions of how value investing focuses more on buying a piece of a business, and less on buying a company's stock, this reliable resource quickly moves on to detail exactly what it takes to become a successful value investor.\u003c\/p\u003e \u003cul\u003e \u003cli\u003eOutlines the six essential elements required for a successful risk averse value investment approach\u003c\/li\u003e \u003cli\u003eContains case studies that illustrate how to approach investing in an intelligent, businesslike fashion\u003c\/li\u003e \u003cli\u003eWalks you through the pitfalls that most investors initially fall into\u003c\/li\u003e \u003c\/ul\u003e \u003cp\u003eWith \u003ci\u003eThe Business of Value Investing\u003c\/i\u003e as your guide, you'll quickly become familiar with one of the most effective investment strategies ever created.\u003c\/p\u003e \u003cp\u003eAcknowledgments xiii\u003c\/p\u003e \u003cp\u003eIntroduction xvii\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 1 \u003c\/b\u003e\u003cb\u003eInvest in the Business, Buy the Stock 1\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eStock Prices are More Noise Than Information 4\u003c\/p\u003e \u003cp\u003eA Businesslike Approach to Valuing the Business 6\u003c\/p\u003e \u003cp\u003eThe Making of a Legend 11\u003c\/p\u003e \u003cp\u003eA Simple Idea, Really 14\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 2 \u003c\/b\u003e\u003cb\u003eThe Only Three Types of Investments You Need to Know 15\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eStocks Prices aren’t Always Rational 16\u003c\/p\u003e \u003cp\u003eThe Business Side of Investing 17\u003c\/p\u003e \u003cp\u003eThree Buckets: Undervalued, Overvalued, and Fairly Valued 21\u003c\/p\u003e \u003cp\u003ePrice Determines Value 24\u003c\/p\u003e \u003cp\u003eKey Takeaways 31\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 3 \u003c\/b\u003e\u003cb\u003eThe Six Elements of Intelligent Investing 33\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eAll Investing is Value Investing 35\u003c\/p\u003e \u003cp\u003eLearn from the Masters 38\u003c\/p\u003e \u003cp\u003eThe Sum of Its Parts: A Fundamental Framework 39\u003c\/p\u003e \u003cp\u003eA Mental Latticework 42\u003c\/p\u003e \u003cp\u003eOverview of the Six Elements 43\u003c\/p\u003e \u003cp\u003eEmphasize the Process, Not the Outcome 46\u003c\/p\u003e \u003cp\u003eKey Takeaways 46\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 4 \u003c\/b\u003e\u003cb\u003eEstablish a Sound Investment Philosophy \u003ci\u003eThe First Element \u003c\/i\u003e47\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003ePreservation of Capital is the Name of the Game 49\u003c\/p\u003e \u003cp\u003ePrice Paid Determines Value Received 52\u003c\/p\u003e \u003cp\u003eThe Starting Point Matters 54\u003c\/p\u003e \u003cp\u003eAvoid Using Margin 61\u003c\/p\u003e \u003cp\u003eFocus on Absolute Returns 64\u003c\/p\u003e \u003cp\u003eKey Takeaways 66\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 5 \u003c\/b\u003e\u003cb\u003eDevelop a Search Strategy \u003ci\u003eThe Second Element \u003c\/i\u003e67\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eIgnore the Media 69\u003c\/p\u003e \u003cp\u003eImitation is the Sincerest Form of Flattery 72\u003c\/p\u003e \u003cp\u003eBasic Search Strategies 75\u003c\/p\u003e \u003cp\u003eAdvanced Search Strategy 85\u003c\/p\u003e \u003cp\u003eKey Takeaways 89\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 6 \u003c\/b\u003e\u003cb\u003eEffective Business Valuation \u003ci\u003eThe Third Element \u003c\/i\u003e91\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eValue Investing 101: Margin of Safety 92\u003c\/p\u003e \u003cp\u003eValue Investing 201: Intrinsic Value 95\u003c\/p\u003e \u003cp\u003eValue Investing 301: Seek Businesses with a Wide Moat 101\u003c\/p\u003e \u003cp\u003eValue Investing 401: Calculating a True Intrinsic Value 106\u003c\/p\u003e \u003cp\u003eThe Value of Management 111\u003c\/p\u003e \u003cp\u003eUnderstanding Return on Equity: Microsoft Corporation 121\u003c\/p\u003e \u003cp\u003eKey Takeaways 124\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 7 \u003c\/b\u003e\u003cb\u003eHave the Discipline to Say No \u003ci\u003eThe Fourth Element \u003c\/i\u003e125\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eIn Investing, Discipline is Everything 126\u003c\/p\u003e \u003cp\u003eDiscipline Affects the Price Paid, Which Determines the Value You Get 128\u003c\/p\u003e \u003cp\u003eBe Prepared to Look Stupid 132\u003c\/p\u003e \u003cp\u003eDon’t Split Hairs 137\u003c\/p\u003e \u003cp\u003eUnveiling Investor A: Warren Buffett 139\u003c\/p\u003e \u003cp\u003eDiscipline is Simple but Rarely Easy 145\u003c\/p\u003e \u003cp\u003eKey Takeaways 146\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 8 \u003c\/b\u003e\u003cb\u003ePracticing the Art of Patience \u003ci\u003eThe Fifth Element \u003c\/i\u003e147\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eSwimming against the Current 150\u003c\/p\u003e \u003cp\u003eThe Benefits of Waiting for a Good Pitch 151\u003c\/p\u003e \u003cp\u003eIgnorance Can Be Bliss 158\u003c\/p\u003e \u003cp\u003eThe Benefits of a Buy-and-Hold Approach 162\u003c\/p\u003e \u003cp\u003eConservative Tests of Safety a Must 171\u003c\/p\u003e \u003cp\u003eKey Takeaways 172\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 9 \u003c\/b\u003e\u003cb\u003eInvest Significantly at the Maximum Point of Pessimism \u003ci\u003eThe Sixth Element \u003c\/i\u003e173\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003ePutting it All Together 174\u003c\/p\u003e \u003cp\u003ePessimism Leads to Value 179\u003c\/p\u003e \u003cp\u003eAvoid That Which is Most Valuable 181\u003c\/p\u003e \u003cp\u003eRemain Flexible in the Approach 186\u003c\/p\u003e \u003cp\u003eAll or Nothing 192\u003c\/p\u003e \u003cp\u003eKey Takeaways 193\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 10 \u003c\/b\u003e\u003cb\u003eMore Than One Way to Find Value \u003ci\u003eCase Studies Showing the Approach at Work \u003c\/i\u003e195\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eA Reminder: Process First, Outcome Second 197\u003c\/p\u003e \u003cp\u003eCase Study #1: Finding Value in an Unloved Industry \u003ci\u003eSunrise Senior Living (SRZ) \u003c\/i\u003e198\u003c\/p\u003e \u003cp\u003eCase Study #2: Money Machine South of the Border \u003ci\u003eTernium Steel \u003c\/i\u003e205\u003c\/p\u003e \u003cp\u003eCase Study #3: A Tale of Two Shares \u003ci\u003eMueller Water Products \u003c\/i\u003e214\u003c\/p\u003e \u003cp\u003eFertile Hunting Ground 216\u003c\/p\u003e \u003cp\u003eConclusion 219\u003c\/p\u003e \u003cp\u003eKey Takeaways 220\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 11 \u003c\/b\u003e\u003cb\u003eAvoiding Common Stumbling Blocks 221\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eGrowth and Value: Two Sides of the Same Coin 225\u003c\/p\u003e \u003cp\u003eBook Value: More Than Meets the Eye 232\u003c\/p\u003e \u003cp\u003eWhat Matters Most 240\u003c\/p\u003e \u003cp\u003eKey Takeaways 242\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 12 \u003c\/b\u003e\u003cb\u003eStarting an Investment Partnership 243\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eTwo Key Considerations 244\u003c\/p\u003e \u003cp\u003eService Providers 245\u003c\/p\u003e \u003cp\u003eQuality Matters Most 247\u003c\/p\u003e \u003cp\u003eNotes 249\u003c\/p\u003e \u003cp\u003eAbout the Author 253\u003c\/p\u003e \u003cp\u003eIndex 255\u003c\/p\u003e  \u003cp\u003e\u003cb\u003eHESHAM M. GAD,\u003c\/b\u003e an up-and-coming value investor, is the Managing Partner of the Gad Partners Funds. Prior to managing the Gad Partners Fund, he ran the Gad Investment Group from 2002 to 2005, a concentrated value fund that delivered annualized returns of 22 percent. He has written hundreds of investment articles and currently contributes to TheStreet.com and Investopedia.com. Gad holds an MBA in finance from the University of Georgia, during which time he met with Warren Buffett for lunch.   \"Buy a business, don't rent stocks.\"—Warren Buffett  \u003c\/p\u003e\u003cp\u003eWhile you've probably heard numerous \"financial experts\" talk about the many ways to make money in the markets, the fact is, there's only one strategy that has truly proven itself over the years. Thanks to the foundation laid out by Benjamin Graham and expanded upon by Warren Buffett and others, \u003ci\u003evalue investing\u003c\/i\u003e—which consists of buying the stock of companies that trade for less than their intrinsic value in order to maximize return while minimizing risk—has helped countless individuals consistently build wealth by avoiding permanent capital loss.\u003c\/p\u003e \u003cp\u003eSuccessful value investors have an ingrained mental framework through which all investment decisions are made. This framework, which stems from Graham's belief that \"investment is most intelligent when it is most businesslike,\" can put you in a better position to improve the overall performance of your portfolio.\u003c\/p\u003e \u003cp\u003eWritten by Sham Gad—founder of the Gad Partners Funds, a value-focused investment partnership inspired by the 1950s Buffett Partnerships—\u003ci\u003eThe Business of Value Investing\u003c\/i\u003e effectively examines the fundamental tenants of this approach and skillfully illustrates the six essential elements of the entire process. Opening with informative discussions of how value investing focuses more on buying a piece of a business and less on buying a company's stock, this reliable resource quickly moves on to detail exactly what it takes to become a successful value investor.\u003c\/p\u003e \u003cul\u003e \u003cli\u003e \u003cp\u003eDevelop a sound investment philosophy\u003c\/p\u003e \u003c\/li\u003e \u003cli\u003e \u003cp\u003eHave a good search strategy\u003c\/p\u003e \u003c\/li\u003e \u003cli\u003e \u003cp\u003eKnow how to value a business and assess the quality of management\u003c\/p\u003e \u003c\/li\u003e \u003cli\u003e \u003cp\u003eHave the discipline to say no\u003c\/p\u003e \u003c\/li\u003e \u003cli\u003e \u003cp\u003ePractice the art of patience\u003c\/p\u003e \u003c\/li\u003e \u003cli\u003e \u003cp\u003eHave the courage to make a significant investment at the point of maximum pessimism\u003c\/p\u003e \u003c\/li\u003e \u003c\/ul\u003e \u003cp\u003eAlong the way, you'll become familiar with specific case studies that illustrate how to approach investing in an intelligent, businesslike fashion. Each one—all of which were actual investments made by the author at one time or another in his career—offers a different way to determine whether a company under investigation is indeed a bargain investment opportunity.\u003c\/p\u003e \u003cp\u003eFor those willing to put forth the effort and show some patience, the stock market offers the greatest forum for wealth accumulation. Filled with in-depth insights and practical advice, this reliable resource can help you make the most of your time in today's markets, by following a value-oriented approach to investing that continues to make sense.\u003c\/p\u003e  \u003cp\u003e\"Buy a business, don't rent stocks.\" \u003ci\u003e—Warren Buffett\u003c\/i\u003e \u003c\/p\u003e\u003cp\u003eWhile you've probably heard numerous \"financial experts\" talk about the many ways to make money in the markets, the fact is, there's only one strategy that has truly proven itself over the years. Thanks to the foundation laid out by Benjamin Graham and expanded upon by Warren Buffett and others, value investing—which consists of buying the stock of companies that trade for less than their intrinsic value in order to maximize return while minimizing risk—has helped countless individuals consistently build wealth by avoiding permanent capital loss. \u003c\/p\u003e\u003cp\u003eSuccessful value investors have an ingrained mental framework through which all investment decisions are made. This framework, which stems from Graham's belief that \"investment is most intelligent when it is most businesslike,\" can put you in a better position to improve the overall performance of your portfolio. \u003c\/p\u003e\u003cp\u003eWritten by Sham Gad—founder of the Gad Partners Funds, a value-focused investment partnership inspired by the 1950s Buffett Partnerships—\u003ci\u003eThe Business of Value Investing\u003c\/i\u003e effectively examines the fundamental tenants of this approach and skillfully illustrates the six essential elements of the entire process. Opening with informative discussions of how value investing focuses more on buying a piece of a business and less on buying a company's stock, this reliable resource quickly moves on to detail exactly what it takes to become a successful value investor. \u003c\/p\u003e\u003cul\u003e \u003cp\u003e1.\tDevelop a sound investment philosophy 2.\tHave a good search strategy 3.\tKnow how to value a business and assess the quality of management 4.\tHave the discipline to say no 5.\tPractice the art of patience 6.\tHave the courage to make a significant investment at the point of maximum pessimism \u003c\/p\u003e\n\u003c\/ul\u003e \u003cp\u003eAlong the way, you'll become familiar with specific case studies that illustrate how to approach investing in an intelligent, businesslike fashion. Each one—all of which were actual investments made by the author at one time or another in his career—offers a different way to determine whether a company under investigation is indeed a bargain investment opportunity. \u003c\/p\u003e\u003cp\u003eFor those willing to put forth the effort and show some patience, the stock market offers the greatest forum for wealth accumulation. Filled with in-depth insights and practical advice, this reliable resource can help you make the most of your time in today's markets, by following a value-oriented approach to investing that continues to make sense.\u003c\/p\u003e","brand":"Wiley","offers":[{"title":"Default Title","offer_id":47990179496165,"sku":"NP9780470444481","price":39.95,"currency_code":"USD","in_stock":false}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/1842\/7735\/files\/9780470444481.jpg?v=1761786808","url":"https:\/\/k12savings.com\/es\/products\/the-business-of-value-investing-isbn-9780470444481","provider":"K12savings","version":"1.0","type":"link"}