{"product_id":"value-investing-in-growth-companies-isbn-9781118567791","title":"Value Investing in Growth Companies","description":"\u003cb\u003eHow to apply the value investing model to today's high-growth Asian companies\u003c\/b\u003e \u003cp\u003eThis revised edition of \u003ci\u003eValue Investing in Growth Companies\u003c\/i\u003e serves as a step-by-step guide that lets investors combine the value investing and growth investing models to find excellent investment opportunities in emerging Asian companies. Though these two investing styles are very different, the authors' proprietary \"jigsaw puzzle\" model integrates them into a holistic investing approach that will help readers enjoy the kind of extraordinary results that investors like Warren Buffett or Peter Lynch built their fortunes on. This model focuses on four vital criteria that, when combined, pinpoint excellent companies in which to invest. Those criteria are: simple business models, quality management, healthy financial numbers, and accurate valuation. This book shows investors how to find growth companies in Asia that combine these four criteria for nearly surefire profits.\u003c\/p\u003e \u003cul\u003e \u003cli\u003eOffers a sensible and stress-free investing strategy that is ideal for anyone looking for investment opportunities in fast-growing Asian countries\u003c\/li\u003e \u003cli\u003eThis revised edition includes new case studies focused specifically on Asian companies and their unique characteristics\u003c\/li\u003e \u003cli\u003ePerfect for investors who want to focus on high-growth, small-cap companies that offer excellent potential returns\u003c\/li\u003e \u003c\/ul\u003e  \u003cp\u003eForeword xi\u003c\/p\u003e \u003cp\u003ePreface xiii\u003c\/p\u003e \u003cp\u003eRusmin Ang’s Journey xiv\u003c\/p\u003e \u003cp\u003eVictor Chng’s Journey xvi\u003c\/p\u003e \u003cp\u003eHow We Met xvii\u003c\/p\u003e \u003cp\u003eOverview of the Contents xix\u003c\/p\u003e \u003cp\u003eAcknowledgments xxi\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 1 The Making of a Value-Growth Investor 1\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eThe Common Journey of New Investors 1\u003c\/p\u003e \u003cp\u003eShort-Term Trading to Long-Term Investing 2\u003c\/p\u003e \u003cp\u003eGrowth Investors 4\u003c\/p\u003e \u003cp\u003eValue Investors 6\u003c\/p\u003e \u003cp\u003eValue Investors versus Growth Investors 7\u003c\/p\u003e \u003cp\u003eValue-Growth Investors 9\u003c\/p\u003e \u003cp\u003eWarren Buffett’s Journey 10\u003c\/p\u003e \u003cp\u003eValue-Growth Investors 12\u003c\/p\u003e \u003cp\u003eDefinition of Growth Companies 13\u003c\/p\u003e \u003cp\u003eCommon Misconceptions about Growth Companies 14\u003c\/p\u003e \u003cp\u003eMyth 1: The Higher the Growth Rate, the Better the Company 15\u003c\/p\u003e \u003cp\u003eMyth 2: Fast Growers Are Companies in Fast-Growing Industries 16\u003c\/p\u003e \u003cp\u003eMyth 3: You Cannot Buy Growth Companies at Bargain Prices 16\u003c\/p\u003e \u003cp\u003eMyth 4: Fast Growers Are Companies That Have Small Market Capitalization 17\u003c\/p\u003e \u003cp\u003eMyth 5: Small and Fast-Growing Companies Are Not Covered by Analysts and Institutions 18\u003c\/p\u003e \u003cp\u003eMyth 6: Growth Companies Pay Very Little Dividend 18\u003c\/p\u003e \u003cp\u003eWhy Value-Growth Investing? 19\u003c\/p\u003e \u003cp\u003eCapital Appreciation or Intrinsic Value Appreciation 20\u003c\/p\u003e \u003cp\u003eDividend Growth and Passive Incomes 23\u003c\/p\u003e \u003cp\u003eSummary 26\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 2 The Secrets of Successful Value-Growth Investors 29\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eHealthy Thoughts Lead to Sustainable Results 29\u003c\/p\u003e \u003cp\u003eMindset 1: Understand the Power of Compound Interest 29\u003c\/p\u003e \u003cp\u003eMindset 2: Start Young! 33\u003c\/p\u003e \u003cp\u003eMindset 3: Be a Long-Term Investor! 35\u003c\/p\u003e \u003cp\u003eMindset 4: Never Leverage to Invest in the Long Run! 36\u003c\/p\u003e \u003cp\u003eMindset 5: Exercise Independent Thinking 38\u003c\/p\u003e \u003cp\u003eMindset 6: Be Emotionally Stable 39\u003c\/p\u003e \u003cp\u003eMindset 7: Think Contrarian When Investing 41\u003c\/p\u003e \u003cp\u003eMindset 8: Understand Mr. Market (Effi cient Market Theory versus Mr. Market) 43\u003c\/p\u003e \u003cp\u003eSummary 46\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 3 The Jigzaw Puzzle—Four Pieces to Value-Growth Investing 47\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eThe Jigsaw Puzzle Model 47\u003c\/p\u003e \u003cp\u003eThe Art and Science of Investing 49\u003c\/p\u003e \u003cp\u003eLooking for the Right Information 53\u003c\/p\u003e \u003cp\u003eInformation Released by the Company 53\u003c\/p\u003e \u003cp\u003eInformation from Outsiders 57\u003c\/p\u003e \u003cp\u003eSummary 58\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 4 Business—The First Piece of the Puzzle 61\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eUnderstand a Company’s Business Model 61\u003c\/p\u003e \u003cp\u003eSimple Business 63\u003c\/p\u003e \u003cp\u003eCircle of Competence 65\u003c\/p\u003e \u003cp\u003eGoing Beyond the Limit 67\u003c\/p\u003e \u003cp\u003eCompetitive Advantage 70\u003c\/p\u003e \u003cp\u003eKnowing the Competitors 73\u003c\/p\u003e \u003cp\u003eThink Like a Customer through the Scuttle-Butting Process 74\u003c\/p\u003e \u003cp\u003eFinding Future Growth Drivers 76\u003c\/p\u003e \u003cp\u003eUnderstanding Risks—What Can Go Wrong? 78\u003c\/p\u003e \u003cp\u003eSummary 79\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 5 Management—The Second Piece of the Puzzle 81\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eManagement Forms the Cornerstone of a Business 81\u003c\/p\u003e \u003cp\u003eCriterion 1: Trustworthiness 83\u003c\/p\u003e \u003cp\u003eCriterion 2: Candid in Reporting 86\u003c\/p\u003e \u003cp\u003eCriterion 3: Aligned with Shareholders’ Interests 88\u003c\/p\u003e \u003cp\u003eCriterion 4: Track Record\/Experience 90\u003c\/p\u003e \u003cp\u003eCriterion 5: Visionary Managers 92\u003c\/p\u003e \u003cp\u003eSummary 96\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 6 Numbers—The Third Piece of the Puzzle 97\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eNumbers Do Not Lie 97\u003c\/p\u003e \u003cp\u003eNumbers to Look at When Reading the Income Statement 98\u003c\/p\u003e \u003cp\u003eRevenue 98\u003c\/p\u003e \u003cp\u003eCost of Goods Sold 100\u003c\/p\u003e \u003cp\u003eGross Profit 100\u003c\/p\u003e \u003cp\u003eExpenses 102\u003c\/p\u003e \u003cp\u003eNet Profit 103\u003c\/p\u003e \u003cp\u003eEarnings per Share (EPS) 106\u003c\/p\u003e \u003cp\u003eNumbers to Look at When Reading the Balance Sheet 109\u003c\/p\u003e \u003cp\u003eNoncurrent Assets 110\u003c\/p\u003e \u003cp\u003eCurrent Assets 112\u003c\/p\u003e \u003cp\u003eNoncurrent Liabilities 114\u003c\/p\u003e \u003cp\u003eCurrent Liabilities 115\u003c\/p\u003e \u003cp\u003eShareholders’ Equity 116\u003c\/p\u003e \u003cp\u003eCurrent Ratio 117\u003c\/p\u003e \u003cp\u003eReturn on Equity 118\u003c\/p\u003e \u003cp\u003eDebt-to-Equity Ratio 120\u003c\/p\u003e \u003cp\u003eNumbers to Look at When Reading the Cash-Flow Statement 122\u003c\/p\u003e \u003cp\u003eCash Flow from Operations 123\u003c\/p\u003e \u003cp\u003eCash Flow from Investment 124\u003c\/p\u003e \u003cp\u003eCash Flow from Finance 127\u003c\/p\u003e \u003cp\u003eSummary 129\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 7 Valuation—The Fourth Piece of the Puzzle 131\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eThe Valuation of a Stock 131\u003c\/p\u003e \u003cp\u003ePrice-to-Earnings Ratio 133\u003c\/p\u003e \u003cp\u003eTypes of PE Ratio 136\u003c\/p\u003e \u003cp\u003ePrice-to-Earnings-to-Growth Ratio 137\u003c\/p\u003e \u003cp\u003eDiscounted Earnings Model 141\u003c\/p\u003e \u003cp\u003eIntrinsic Value 141\u003c\/p\u003e \u003cp\u003eMargin of Safety 148\u003c\/p\u003e \u003cp\u003eUndervalued 149\u003c\/p\u003e \u003cp\u003eFair Value 149\u003c\/p\u003e \u003cp\u003eOvervalued 150\u003c\/p\u003e \u003cp\u003eSummary 154\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 8 Screening—Buy—Monitor—Sell 155\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eScreening (Using Numbers against Competitors) 155\u003c\/p\u003e \u003cp\u003eStage 1: Consistency in Key Performance Indicators 156\u003c\/p\u003e \u003cp\u003eStage 2: Comparing the Compound Annual Growth Rate 157\u003c\/p\u003e \u003cp\u003eStage 3: Finding Consistency or Increases In Margins 158\u003c\/p\u003e \u003cp\u003eStage 4: Digging Further into a Company’s Debt and Cash Position 159\u003c\/p\u003e \u003cp\u003eStage 5: Digging Further into Other Numbers to Confi rm Your Pick 159\u003c\/p\u003e \u003cp\u003eConclusion 161\u003c\/p\u003e \u003cp\u003eBuy, Monitor, and Sell 162\u003c\/p\u003e \u003cp\u003eBuy, Buy, and Buy 163\u003c\/p\u003e \u003cp\u003eMonitor, Monitor, and Monitor 166\u003c\/p\u003e \u003cp\u003eOnline Monitoring 169\u003c\/p\u003e \u003cp\u003eOffl ine Process 170\u003c\/p\u003e \u003cp\u003eSell, Sell, and Sell 171\u003c\/p\u003e \u003cp\u003eSummary 177\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 9 Portfolio Management for Growth Companies 179\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eUnderstanding Your Portfolio 179\u003c\/p\u003e \u003cp\u003eTypes of Diversifi cation 180\u003c\/p\u003e \u003cp\u003ePersonal Diversifi cation 181\u003c\/p\u003e \u003cp\u003eCompany Diversifi cation 182\u003c\/p\u003e \u003cp\u003eIndustry Diversifi cation 183\u003c\/p\u003e \u003cp\u003eThe Sky Is the Limit 184\u003c\/p\u003e \u003cp\u003eSummary 185\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 10 Avoid Common Mistakes 187\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eThe Dos and Don’ts of Investing 187\u003c\/p\u003e \u003cp\u003eMistake 1: You Think You Are a Long-Term Investor but You Are Really a Speculator 187\u003c\/p\u003e \u003cp\u003eMistake 2: Timing the Market 189\u003c\/p\u003e \u003cp\u003eMistake 3: Investing in High-Technology and IPO Companies 190\u003c\/p\u003e \u003cp\u003eMistake 4: Investing in Companies that Are Not Consistent 192\u003c\/p\u003e \u003cp\u003eMistake 5: Buying a Growth Trap (Not Focusing on the Quantitative Side) 194\u003c\/p\u003e \u003cp\u003eMistake 6: Buying a Value Trap (Not Focusing on the Qualitative Side) 195\u003c\/p\u003e \u003cp\u003eMistake 7: Sell Your Winners; Keep Your Losers 198\u003c\/p\u003e \u003cp\u003eMistake 8: Diversification Mistakes 199\u003c\/p\u003e \u003cp\u003eSummary 200\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 11 Case Studies and Conclusion 201\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eBibliography 205\u003c\/p\u003e \u003cp\u003eAbout the Authors 207\u003c\/p\u003e \u003cp\u003eIndex 209 \u003c\/p\u003e  \u003cp\u003e\u003cb\u003eRusmin Ang\u003c\/b\u003e and \u003cb\u003eVictor Chng\u003c\/b\u003e are the Chief Investment Analysts at 8 Investment Pte Ltd. Together they specialize in unearthing high-growth, small-cap companies. 8 Investment was founded in 2008 with the founders' intention of inspiring investors through the sharing of successful learning experiences in business and investing. Driven by the values of integrity, responsibility, mastery and growth, the company has achieved excellent financial results with an average 139% growth in revenue annually over the last three years. Subscribing to its FASS business model (Feasibility, Adaptability, Sustainability and Scalability), 8 Investment has built one of the largest networks of value investors in Asia and developed a comprehensive range of investing books, CDs and digital learning programmes to cater to this growing audience. Their seminars and courses have been attended by over 70,000 people throughout Asia in the last six years.\u003c\/p\u003e  \u003cp\u003eIf you're looking for a surefire, get-rich-quick stock trading scheme, this book is not for you.\u003c\/p\u003e \u003cp\u003eIf you're in the market for magic algorithms, bullet-proof charting techniques, automated trading systems or other financial gimmickry designed to separate you from your hard-earned money, look elsewhere, because you won't find any of that here.\u003c\/p\u003e \u003cp\u003eHere's what you will find in this book: A low-stress approach to building up a fortune steadily, over an extended period of time. It's an approach to investing intelligently and methodically, using similar techniques to those utilized by the world's most successful investor, Warren Buffett.\u003c\/p\u003e \u003cp\u003eBuffett has used this approach to amass a fortune in excess of $46 billion, making him the third-richest man on the planet. But if you're like most people, you don't want to become the next Warren Buffett. You'd be happy to quietly make millions in your spare time.\u003c\/p\u003e \u003cp\u003eAnd that's exactly what authors Rusmin Ang and Victor Chng offer you an opportunity to do. They introduce you to a unique value\/growth investing strategy based on their proprietary Jigsaw Puzzle approach—an approach that lets you identify the best investment prospects and build up a solid portfolio of high-yield growth stocks that will increase steadily from year to year.\u003c\/p\u003e \u003cp\u003eYou'll assemble a highly accurate picture of a company before deciding whether or not to invest in it; you'll drill deep into the heart of a business to uncover stellar growth potential; and you'll know when and how to buy into high-growth, small-cap companies at pennies on the dollar for market-beating compound returns.\u003c\/p\u003e \u003cp\u003eWriting in plain, jargon-free English—with a generous dose of humor—the authors walk you, step by-step, through the value investing basics. Then, with the help of real-world examples and five, full-length case studies focusing on Asian markets, they fill you in on how to:\u003c\/p\u003e \u003cul\u003e \u003cli\u003eDevelop good value investing habits and financial discipline\u003c\/li\u003e \u003cli\u003eAnalyze a company's business model and its management structure\u003c\/li\u003e \u003cli\u003eMake sense of its financial statements and get a clear picture of its financial health\u003c\/li\u003e \u003cli\u003eAccurately calculate a company's future earnings potential\u003c\/li\u003e \u003cli\u003eDecide whether to buy or sell a stock\u003c\/li\u003e \u003cli\u003eScreen a stock that could become the next big money-maker\u003c\/li\u003e \u003cli\u003eManage risk and maximize returns in a growth stock investment portfolio\u003c\/li\u003e \u003c\/ul\u003e \u003cp\u003eBased on the authors' philosophy that \"Anyone with a nine-to-five job and the diligent application of value investing can retire with millions,\" \u003ci\u003eValue Investing in Growth Companies\u003c\/i\u003e is your ticket to the wealth and financial independence you want and deserve.\u003c\/p\u003e  \u003cp\u003e\"There is no such thing as the right formula for investing. There is, however, the right mindset for better investing. In the search for Asian value stocks, Ang and Chng lay out some fundamental guidelines and observations for successful stock picking. Investors who are eager to gain exposure to the Asian market should read this book.\"\u003cbr\u003e \u003cb\u003e—Ronald W. Chan, CIO of Chartwell Capital Ltd, author of \u003ci\u003eThe Value Investors: Lessons from the World's Top Fund Managers\u003c\/i\u003e\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e\"Bottom-up investing is all about discovering value early, getting into the stock well before the crowds and exiting as mainstream investors move in and push up the valuation. The techniques outlined herein are timeless and can be referred to over and over again as you progress in your investment journey. This is is an enlightening read and thoroughly enjoyable for those interested in learning about value investing and starting their investing journey.\"\u003cbr\u003e \u003cb\u003e—Digby Falkiner, former Indonesian research director at Deutsche Bank, former regional research operations head at Societe Generale, private investor and lead trainer for MIP Advanced\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e\"Rusmin and Victor have broken down the complex and arcane art of stock picking through fundamental analysis into easy-to-understand concepts and examples. Most of the examples used were of Asian companies and that made it easy for me to relate to them. I highly recommend this informative book to everyone who wants to learn more about value investing.\"\u003cbr\u003e \u003cb\u003e—Lim Dau Hee, Group IT Director of ShareInvestor Pte Ltd\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e\u003ci\u003e\"Value Investing in Growth Companies\u003c\/i\u003e is a solid piece of work where you will find real-life tried-and-tested strategies to help you become a successful value investor if you're looking into high-growth, small-cap companies. Rusmin and Victor have unleashed everything they know about picking companies that will multiply in value many times over. The book is easy to read and keeps things simple to understand for the everyman—you can only find golden nuggets of investing wisdom between its covers.\"\u003cbr\u003e \u003cb\u003e—Adam Wong, coauthor of the national bestseller \u003ci\u003eLucky Bastard!\u003c\/i\u003e\u003c\/b\u003e\u003c\/p\u003e","brand":"Wiley","offers":[{"title":"Default Title","offer_id":47990445342949,"sku":"NP9781118567791","price":44.0,"currency_code":"USD","in_stock":false}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/1842\/7735\/files\/9781118567791.jpg?v=1761787857","url":"https:\/\/k12savings.com\/es\/products\/value-investing-in-growth-companies-isbn-9781118567791","provider":"K12savings","version":"1.0","type":"link"}