Applied Value Investing

Abstract

Books on Graham and Dodd-based valuation tend to be predominantly introductory in nature, and essentially present different interpretations of value investing, broadly defined. This book takes a different approach; rather than introduce a new variation on the value investing theme, it adopts the modern Graham and Dodd approach and applies it in a variety of unique and practical ways. For example, it evaluates major acquisitions undertaken by noted value investors (such as Warren Buffett and Eddie Lampert) through the lens of Graham and Dodd in formal case studies. It also presents a Graham and Dodd-based catastrophe pricing approach and applies it to an alternative investment-like case study. The book further presents a practical macro-based framework that can be used in a value investing context as an opportunity screening tool. Finally, it presents an integrated business framework that can be used to either assess or manage a franchise (or a firm operating with a sustainable competitive advantage). [Note: The downloadable document is the book’s Preface without endnotes.]

Keywords: value investing, valuation, M&A, business cycles, catastrophe pricing, business analysis

JEL Classification: G34, G39, L21, M21