E-Book Overview
As with his weekly column, James Montier's Value Investing is a must read for all students of the financial markets. In short order, Montier shreds the 'efficient market hypothesis', elucidates the pertinence of behavioral finance, and explains the crucial difference between investment process and investment outcomes. Montier makes his arguments with clear insight and spirited good humor, and then backs them up with cold hard facts. Buy this book for yourself, and for anyone you know who cares about their capital!—Seth Klarman, President, The Baupost Group LLCThe seductive elegance of classical finance theory is powerful, yet value investing requires that we reject both the precepts of modern portfolio theory (MPT) and pretty much all of its tools and techniques.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.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 2008/09 financial crisis.In this book James shares his tried and tested techniques and provides the latest and most cutting edge tools you will need to deploy the value approach successfully.It provides you with the tools to start thinking in a different fashion about the way in which you invest, introducing the ways of over-riding the emotional distractions that will bedevil the pursuit of a value approach and ultimately think and act differently from the herd.
E-Book Content
P1: JYS FM JWBK424-Montier September 23, 2009 17:22 Printer: Yet to come ii P1: JYS FM JWBK424-Montier September 23, 2009 17:22 Printer: Yet to come Value Investing i P1: JYS FM JWBK424-Montier September 23, 2009 17:22 Printer: Yet to come ii P1: JYS FM JWBK424-Montier September 23, 2009 17:22 Printer: Yet to come Value Investing Tools and Techniques for Intelligent Investment James Montier A John Wiley and Sons, Ltd., Publication iii P1: JYS FM JWBK424-Montier September 23, 2009 17:22 Printer: Yet to come C 2009 James Montier Copyright Each of the individual articles contained in this work is the copyright of either The Soci´et´e G´en´erale Group, or Dresdner Kleinwort, a Brand of Commerzbank AG, as indicated in the footnotes to each chapter. The articles are reproduced in this collection for John Wiley & Sons Ltd with permission. Registered office John Wiley & Sons Ltd, The Atrium, Southern Gate, Chichester, West Sussex, PO19 8SQ, United Kingdom For details of our global editorial offices, for customer services and for information about how to apply for permission to reuse the copyright material in this book please see our website at www.wiley.com. The right of the author to be identified as the author of this work has been asserted in accordance with the Copyright, Designs and Patents Act 1988. All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, except as permitted by the UK Copyright, Designs and Patents Act 1988, without the prior permission of the publisher. Wiley also publishes its books in a variety of electronic formats. Some content that appears in print may not be available in electronic b