Value Investing: Tools and Techniques for Intelligent Investment

Value Investing has been pioneered and is used by the world's most famous investors, including Warren Buffett, Ben Graham, John Templeton, Joel Greenblatt, Bruce Greenwald and many more.  It offers tried and tested techniques to making money out of buying underpriced shares and securities. 

In this important new book, the highly respected and controversial value investor and behavioural analyst, James Montier explains how value investing is the only tried and tested method of delivering sustainable long-term returns. This begs the question why isn't everyone a value investor? In part, it is because value investing requires a different mindset and the methods, approach and conclusions of value investing are very different from those taught in business schools and finance courses. In this book James shares his tried and tested techniques and provides the latest and most cutting edge tools and techniques you will need to deploy the value approach successfully.

James shows you why everything you learnt at business school is wrong; how to think properly about valuation and risk; how to avoid the dangers of growth investing; how to be a contrarian; how to short stocks; how to avoid value traps; how to hedge ignorance using cheap insurance.  Crucially he also gives real time examples of the principles outlined in the context of the last 18 months.

Contents:

Part I: Everything you learnt in Business School is wrong

1) The dead parrot of finance

2) Psuedoscience and finance

3) The relative performance derby: a key source of poor performance

4) The dangers of DCF

5) Is Value really risker than growth

6) Deflation, depression and value

Part II) Behavioural Foundations of Value Investing

7) Overpaying for the hope of growth

8) Placebos, booze and glamour stocks

9) Tears before bedtime

10) Clear and present danger: The Trinity of Risk

11) Maximum pessimism, profit warnings and heat of the moment

12) The behavioural stumbling blocks to value investing

Part III) The Philosophy of Value Investing

13) The ten tenets of investing

14) Process not outcomes

15) Beware of Action man

16) The Bullish bias and the need for scepticism

17) Keep it simple stupid

18) Dark days for deep value

Part IV) The Empirical Evidence

19) Global Value Investing

20) Graham's net-nets: outstanding or out-dated?

Part V) The 'Dark Side' Of Value Investing: Short Selling

21) Pirates, Spies and Short Sellers

22) Cooking the books

23) Bad business

Part VI) Real time value investing

24) The case against emerging markets

25) Financials: opportunity or value trap

26) Bonds: speculation not investment

27) Cyclicals and value traps

28) The road to revulsion and the creation of value

29) Psychology of bear markets

30) Revulsion and value

31) Buy when its cheap, if not then, when?

32) Roadmap to inflation and sources of cheap insurance