The Business of Value Investing: Six Essential Elements to Buying Companies Like Warren Buffett By Sham M. Gad
Publisher: Wiley 2009-10-19 | 268 Pages | ISBN: 0470444487 | PDF | 1.3 MB







A blueprint to successful value investing

Successful value investors have an ingrained mental framework throughwhich all investments decisions are made. This framework, which stemsfrom the father of value investing, Benjamin Graham–who believed thatinvestment is most intelligent when it is most businesslike–can put youin a better position to improve the overall performance of yourportfolio.

Written by Sham Gad–founder of the Gad Partners Funds, a value–focusedinvestment partnership inspired by the 1950s Buffett Partnerships–TheBusiness of Value Investing effectively examines the fundamentaltenants of this approach and skillfully illustrates the six essentialelements of the entire process. Opening with some informativediscussions of how value investing focuses more on buying a piece of abusiness, and less on buying a company′s stock, this reliable resourcequickly moves on to detail exactly what it takes to become a successfulvalue investor.

•Outlines the six essential elements required for a successful risk averse value investment approach
•Contains case studies that illustrate how to approach investing in an intelligent, businesslike fashion
•Walks you through the pitfalls that most investors initially fall into
With The Business of Value Investing as your guide, you′ll quicklybecome familiar with one of the most effective investment strategiesever created.



From the Inside Flap "Buy a business, don′t rent stocks."—Warren Buffett
While you′ve probably heard numerous "financial experts" talk about themany ways to make money in the markets, the fact is, there′s only onestrategy that has truly proven itself over the years. Thanks to thefoundation laid out by Benjamin Graham and expanded upon by WarrenBuffett and others, value investing—which consists of buying the stockof companies that trade for less than their intrinsic value in order tomaximize return while minimizing risk—has helped countless individualsconsistently build wealth by avoiding permanent capital loss.

Successful value investors have an ingrained mental framework throughwhich all investment decisions are made. This framework, which stemsfrom Graham′s belief that "investment is most intelligent when it ismost businesslike," can put you in a better position to improve theoverall performance of your portfolio.

Written by Sham Gad—founder of the Gad Partners Funds, a value–focusedinvestment partnership inspired by the 1950s Buffett Partnerships—TheBusiness of Value Investing effectively examines the fundamentaltenants of this approach and skillfully illustrates the six essentialelements of the entire process. Opening with informative discussions ofhow value investing focuses more on buying a piece of a business andless on buying a company′s stock, this reliable resource quickly moveson to detail exactly what it takes to become a successful valueinvestor.

•Develop a sound investment philosophy

•Have a good search strategy

•Know how to value a business and assess the quality of management

•Have the discipline to say no

•Practice the art of patience

•Have the courage to make a significant investment at the point of maximum pessimism

Along the way, you′ll become familiar with specific case studies thatillustrate how to approach investing in an intelligent, businesslikefashion. Each one—all of which were actual investments made by theauthor at one time or another in his career—offers a different way todetermine whether a company under investigation is indeed a bargaininvestment opportunity.

For those willing to put forth the effort and show some patience, thestock market offers the greatest forum for wealth accumulation. Filledwith in–depth insights and practical advice, this reliable resource canhelp you make the most of your time in today′s markets, by following avalue–oriented approach to investing that continues to make sense.