Summary of Bruce C. Greenwald, Judd Kahn & Paul D. Sonkin's Value Investing

By IRB Media

Please note: This is a companion version & not the original book.

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#1 Value investing is the process of buying securities only when their market prices are significantly below their calculated intrinsic value. It is a simple process, but it requires a lot of discipline.

#2 There are two types of fundamental investors: macrofundamentalists, who are concerned with broad economic factors that affect the entire market, and microfundamentalists, who are concerned with the economics of specific securities.

#3 There are many different approaches to microfundamentalist investing, and each one focuses on a different set of economic fundamentals and securities. The most common approach focuses on current price of a stock or other security as the point of departure, and then studies the history of this security to anticipate how the critical variables will change.

#4 The case for value investing is both theoretical and factual. It has been proven that value investing strategies have worked, and over extended periods, they have produced better returns than have both the leading alternatives and the market as a whole.

• Language: English
• Publisher: IRB Media
• Release date: Mar 22, 2022
• ISBN: 9781669365150

IRB Media

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Insights on Bruce C. Greenwald and Judd Kahn & Paul D. Sonkin's Value Investing

Contents

Insights from Chapter 1

Insights from Chapter 2

Insights from Chapter 3

Insights from Chapter 4

Insights from Chapter 5

Insights from Chapter 6

Insights from Chapter 7

Insights from Chapter 8

Insights from Chapter 9

Insights from Chapter 10

Insights from Chapter 11

Insights from Chapter 12

Insights from Chapter 13

Insights from Chapter 14

Insights from Chapter 1

#1

Value investing is the process of buying securities only when their market prices are significantly below their calculated intrinsic value. It is a simple process, but it requires a lot of discipline.

#2

There are two types of fundamental investors: macrofundamentalists, who are concerned with broad economic factors that affect the entire market, and microfundamentalists, who are concerned with the economics of specific securities.

#3

There are many different approaches to microfundamentalist investing, and each one focuses on a different set of economic fundamentals and securities. The most common approach focuses on current price of a stock or other security as the point of departure, and then studies the history of this security to anticipate how the critical variables will change.

#4

The case for value investing is both theoretical and factual. It has been proven that value investing strategies have worked, and over extended periods, they have produced better returns than have both the leading alternatives and the market as a whole.

#5

The three sources of support for the argument that value investing produces superior returns are the mechanical studies, which demonstrate that value portfolios are similar to those produced by a diligent value investor analyzing stocks one by one.

#6

The three-phase process of value investing is to locate potentially rich areas, identify value, and construct an investment portfolio that reduces risk. It is a mental discipline, but it may be that the qualities essential for success are less mental than temperamental.

#7

Value investing requires patience. You must wait for Mr. Market to offer you a bargain. After you buy a security, you must wait for the market to come around and recognize its true value.

#8

The company's intrinsic value is calculated by examining its stream of earnings over a period of years and estimating how much the company should earn on average over the course of a business cycle. This figure should correspond to a market-level return on the intrinsic value of the assets.

#9

There are three types of variables used to rank stocks: fundamental, growth, and profitability. Value stocks outperformed glamour stocks in studies that used several fundamental variables to rank them.

#10

The most common