New Insights for Corporate Strategists from a Renowned Value Investor
Strategy & Leadership, Vol. 42, No. 6, pp. 29-36, 2014
Posted: 1 Dec 2014
Date Written: November 29, 2014
Purpose of this Paper: This "masterclass" article explains how modern value investing analysis can guide corporate strategists and corporate development departments. It shows how executives can use some of the key insights from the recently published book by Martin J. Whitman and Fernando Diz, "Modern Security Analysis" (Hoboken, NJ: Wiley, 2013).
Design/Methodology/Approach: This "masterclass" article includes an interview with the lead author of the book, value investor Martin J. Whitman.
Findings: The insights contained within "Modern Security Analysis" can and should be leveraged by corporate executives and strategists to create wealth for their firms over time.
Research & Practical Limitations/Implications: This article supports earlier work published in "Strategy & Leadership" and other journals, which shows that Graham and Dodd-based valuation and analysis is a viable avenue of academic research and a viable method with which to assess corporate strategic initiatives (such as mergers and acquisitions, share buy-backs, risk management initiatives, etc.).
What is Original/Value of Paper: The analysis presented in this paper provides senior executives with a guide to the assessment tools used by the most successful value investors and an explanation of their relevance to corporate strategy.
Keywords: value investing, corporate management, corporate strategy, corporate development, M&A
JEL Classification: G30, G34, L1, M10, M12
Suggested Citation: Suggested Citation