The Value Investors: Lessons from the World's Top Fund Managers
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Investing legend Warren Buffett once said that “success in investing doesn’t correlate with I.Q. once you’re above the level of 125. Once you have ordinary intelligence, what you need is the temperament to control the urges that get other people into trouble in investing.”
In an attempt to understand exactly what kind of temperament Buffett was talking about, Ronald W. Chan interviewed 12 value-investing legends from around the world, learning how their personal background, culture, and life experiences have shaped their investment mindset and strategy. The Value Investors: Lessons from the World’s Top Fund Managers is the result.
From 106-year-old Irving Kahn, who worked closely with “father of value investing” Benjamin Graham and remains active today, and 95-year-old Walter Schloss (described by Warren Buffett as the “super-investor from Graham-and-Dodsville”), to the co-founders of Hong Kong-based Value Partners, Cheah Cheng Hye and V-Nee Yeh, and Francisco García Paramés of Spain’s Bestinver Asset Management, Chan chose investment luminaries to help him understand the international appeal – and success – of value investing. All of these men became strong advocates of the approach despite considerable age and cultural differences. Chan finds out why.
In The Value Investors, readers will also discover how these investors, each of whom has a unique value perspective, have consistently beaten the stock market over the years. Do they share a trait that allows this to happen? Is there a winning temperament that turns the ordinary investor into an extraordinary one? This book answers these questions and more.
price-to-book (P/B), or price-to-earnings (P/E). So, Benjamin Graham, with his philosophy of finding cheap stocks, became Tweedy’s largest client because the brokerage firm had all of the connections to and held these stocks.” As the business relationship between Graham and Tweedy continued to strengthen, the brokerage firm even took over office space next to Graham at 52 Wall Street. That proximity meant the firm’s young runner had less distance to cover when settling trades with its major
are joined at the hip: Growth is always a component in the calculation of value, constituting a variable whose importance can range from negligible to enormous and whose impact can be negative as well as positive . . . In addition, we think the very term ‘value investing’ is redundant. What is ‘investing’ if it is not the act of seeking value at least sufficient to justify the amount paid?” When his boss left Bestinver in 1991, young Paramés was on his own in the research department. He said, “I
the philosophy of Ludwig von Mises and Friedrich Hayek. Unlike mainstream macroeconomic models, such as the Keynesian model or the Chicago School model, which involve a more mathematical way of analyzing the economy, the Austrian model has more to do with the observation of human action, also known as praxeology, the objective of which is to understand how different individuals affect economic phenomena. “Mainstream economics focuses on empirical data, which leads economists into analyzing data
the publisher and author have used their best efforts in preparing this book, they make no representations or warranties with respect to the accuracy or completeness of the contents of this book and specifically disclaim any implied warranties of merchantability or fitness for a particular purpose. No warranty may be created or extended by sales representatives or written sales materials. The advice and strategies contained herein may not be suitable for your situation. You should consult with a
“After working in journalism for 18 years, I came to the conclusion that I had quite an aptitude for in-depth investment research. Through a friend, I met Mr. Hsieh Fu Hua, then the head of investment bank Morgan Grenfell in Singapore. He asked me whether I would be interested in joining the bank as an investment researcher. With nothing to lose and a desire to try something different, I left journalism and became a stock analyst.” Starting an Investment Hobby Shop His new career could have had