The Business of Value Investing.pdf

216 The Business of Value Investing many value investors devote ample time and effort to investigating spin - offs simply for th ...

More Than One Way to Find Value 217 Equity prices across all industries have fallen to levels not seen for decades. Mr. Market, ...

218 The Business of Value Investing rate has been astonishing, and in 2008, it replaced more than 200 percent of its production. ...

More Than One Way to Find Value 219 In March, AgFeed shares hit $ 0.90, valuing the company at $ 38 million, against 2008 net pr ...

220 The Business of Value Investing price is usually paid when investing alongside the crowd. Value investors are wired to avoid ...

11 CHAPTER Avoiding Common Stumbling Blocks I ’ d rather be approximately right than precisely wrong. — Warren Buffett Investing ...

222 The Business of Value Investing asset classes assume when participating in the capital markets. But these business risks are ...

Avoiding Common Stumbling Blocks 223 is like crossing the street after only looking straight ahead. The destination might be cle ...

224 The Business of Value Investing The multiple that investors are willing to pay for the underlying earning and growth potent ...

Avoiding Common Stumbling Blocks 225 be scrutinized before blindly relying on equity, or book value. Investing can yield some as ...

226 The Business of Value Investing The obvious preference is to have intrinsic value grow; the lat- ter situation, which is com ...

Avoiding Common Stumbling Blocks 227 was trading for a P/E of 12 may now command a P/E of 15, leading to a stock price of $ 30 v ...

228 The Business of Value Investing of this suggests that, over time, the market will value such excep- tional fundamentals with ...

Avoiding Common Stumbling Blocks 229 Gamble is usually afforded a fair multiple because of its decades - long record of superior ...

230 The Business of Value Investing environment, the P/E ratio afforded to individual securities may refl ect undervaluation, fa ...

Avoiding Common Stumbling Blocks 231 an investor still hasn ’ t lost any money from the original $ 18 pur- chase price. These ar ...

232 The Business of Value Investing participants to abandon ship at the fi rst sign of trouble. As a result, the potential for s ...

Avoiding Common Stumbling Blocks 233 On paper, book value looks painfully simple: Assets $ 800 million  Liabilities $ 500 milli ...

234 The Business of Value Investing However, the book value issue is a paradoxical one, because it can reward those investors wh ...

Avoiding Common Stumbling Blocks 235 Horsehead were trading for $ 4. Many intriguing valuation fi gures jump out from the balanc ...