How to Think Like Benjamin Graham and Invest Like Warren Buffett

264 SubjectIndex

European Union (EU):
corporate governance and, 175–176, 183
integration of finance and governance,
181
(See also names of specific countries)
Expenses, matching revenues with, 93–94

Filter technique, 21
Financial alchemy, 81–86
Financial leverage index, 130
401(k) accounts, 76, 77
Fractals, 44–46
France, mergers and acquisitions, 185
Fraud detection, 219
Free rider strategy, 73, 76
Fundamental analysis, 70–75
Fundamental efficiency, 26

Germany:
corporate governance and, 175
globalization and, 187
information and, 188, 189
mergers and acquisitions and, 180, 185
social responsibility and, 177
Glass-Steagall Act, 174, 187, 190
Globalization, 52, 113, 171–191
accounting and, 181–183, 219
capital markets and, 186–187
corporate governance and, 172–176, 183–
184
information and, 188–189
mergers and acquisitions, 178–180, 184–
186
orientation of board, 195–200
shareholder primacy and, 172–176, 180,
189–190
social responsibility and, 176–179
Goodwill, 136–137, 154
Greater fool theory, 69

Hexponent, 35–36
Half Movement, at General Electric, 227
Hedge funds, 15
Hoaxes, 53–58
Hockey puck problem, 38, 47
Holding period, 87
Hostile takeovers, 178–180, 184–186, 214–215

Implied cap rate, 149
Income allocation, 77–78

Index funds, 73–74, 99

Individual retirement accounts (IRAs), 76,

77

Inflation, in valuation process, 103, 136

Information volatility, 51–59

negative, 52–59

positive, 52

Informational efficiency, 26

Infrastructure fortification, at Coca-Cola,

238

Initial public offerings (IPOs), 8–9

Inside tips, 56

Insider effect, 11

Integrated diversity, at General Electric,

223, 225, 226

Intelligent Investor, The(Graham), 22, 134

Interest rates:

risk-free, 102, 141, 142

in valuation process, 102

Internet, 8–9

and Disney, 232

and General Electric, 228–229

rise of, 113

Webcasting, 54

Interpretation of Financial Statements, The

(Graham), 121

Intrinsic time, 46–47

Inventory turnover, 124–125

Investment banking, 174, 187, 190

Italy, mergers and acquisitions, 185

January effect, 11

Japan:

accounting and, 181–182

corporate governance and, 176, 184

globalization and, 185, 187

information and, 189

stoc kmar ket bubble, 9, 84

Joseph effect, 46–47

Lake Woebegon syndrome, 117

Learning culture:

at Coca-Cola, 239–240

at General Electric, 227, 228

Leverage, 123–124, 129, 130

Limit cycle attractors, 43

Linear testing, 33–36

Liquidation value, 135–136

Liquidity ratio, 122–123

Long-term approach, 86–88

Loyalty, duty of, 178

Lyapunov exponents (LEs), 43–44