Value investing isn't about excitement, or headline-making discoveries, or any of the other things that light up journalists' eyes and stockbrokers' phones. Value investing is instead about companies with solid business fundamentals that, for whatever reason, have a current stock price that is less than their intrinsic value. It is about looking under the hood, kicking the tires, and buying the stock in those companies for seventy cents on the dollar or less.
Value Investing Today, Third Edition, is written for investors who understand the importance of knowing what they buy, and who have learned--often through hard, costly experience--that quick fixes more often than not just as quickly fail. This hands-on value investing guidebook will show you how to:
- Identify value companies ahead of the crowd--what to look for, what to avoid, when to buy, when to sell
- Create an objective investment process to identify--and overcome--the pressures of today's marketplace
- Think globally, and extend the application of value investing principles to companies in newer or less well-known markets
- Learn and implement the skills necessary to build and maintain a portfolio of value stocks
- Establish and adhere to a dispassionate, often contrarian investment philosophy and process
Most traders and investors want excitement in their stocks, news events that will propel stock prices into the stratosphere regardless of their true worth. Value investors, on the other hand, want stocks that are unnoticed by the crowd and, most important, selling for less than they are worth. They believe, and history has shown, that these solid companies will continue to perform well, and the gap between their market price and fair value will eventually close.
If you're looking for a stock poised to take the world by storm, a quick "ten-bagger," you should probably move on to more adventurous trading how-tos. If however, you are one of those serious investors willing to trade the dazzle of bright lights for the stability of substance and true worth, Value Investing Today is destined to show you how to construct a portfolio poised to stand the test of time, and get you to the finish line far
About the Author
Charles H. Brandes, CFA is founder and a managing partner of Brandes Investment Partners, LLC, an investment firm serving institutional and private clients with more than $50 billion under management as of December 31, 2002. A Chartered Financial Analyst for more than 25 years, Brandes had the tremendous fortune early in his career to meet and learn from Benjamin Graham, long considered the father of security analysis and value investing. He was able to learn firsthand the techniques Graham used to uncover bargain securities, and has used those basic principles as the foundation to achieve consistently superior results for his clients.