The Business of Value Investing.pdf

18 The Business of Value Investing of buying a share of stock based on the business ’ s future earnings potential, asset values, ...

The Only Three Types of Investments You Need to Know 19 Year A^ B 1  10%  25% 2 10% 15% 3 12% 15% 4 12% 15% At the end of year ...

20 The Business of Value Investing Although Graham focused his investment activities primarily on quantitative aspects, qualitat ...

The Only Three Types of Investments You Need to Know 21 Another example is the Sequoia Fund, run by another Graham student, Bill ...

22 The Business of Value Investing understand the business. And to understand a business, you should really know it. Simply read ...

The Only Three Types of Investments You Need to Know 23 professional investors focus on two valuation metrics: the price-to- ear ...

24 The Business of Value Investing took all the stocks on the New York Stock Exchange, American Stock Exchange, and NASDAQ that ...

The Only Three Types of Investments You Need to Know 25 As I mentioned earlier, prices exist to inform investors. Any business i ...

26 The Business of Value Investing back over several years, I see that Mohawk has done excep t- ionally well: Year Sales ( $ bil ...

The Only Three Types of Investments You Need to Know 27 Year Free Cash Flow 2004 $ 136 million 2005 $ 314 million 2006 $ 616 mil ...

28 The Business of Value Investing think offi ce buildings, houses, schools, and hospitals are disap- pearing, the need for Moha ...

The Only Three Types of Investments You Need to Know 29 The sum of the present value of the cash fl ows is $ 1.53 billion. Given ...

30 The Business of Value Investing the world like Coke. For years, it seemed as if fi nancial institutions could continue to del ...

The Only Three Types of Investments You Need to Know 31 I would accept it, given the underlying qualities of this business. As y ...

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3 CHAPTER The Six Elements of Intelligent Investing One of the many unique and advantageous aspects of value investing is that t ...

34 The Business of Value Investing of construction and insurance. Even if the houses only were to get back to a value of $ 1 mil ...

The Six Elements of Intelligent Investing 35 demands for the borrowed money, then any short - term fl uctuations in the stock pr ...

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36 The Business of Value Investing Later, in 1949, Graham published the The Intelligent Investor , a much shorter yet equally ef ...