The Business of Value Investing.pdf

x Contents

Ignorance Can Be Bliss 158

The Benefits of a Buy-and-Hold Approach 162

Conservative Tests of Safety a Must 171

Key Takeaways 172

Chapter 9 Invest Significantly at the Maximum

Point of Pessimism

The Sixth Element 173

Putting It All Together 174

Pessimism Leads to Value 179

Avoid That Which Is Most Valuable 181

Remain Flexible in the Approach 186

All or Nothing 192

Key Takeaways 193

Chapter 10 More Than One Way to Find Value

Case Studies Showing the Approach

at Work 195

A Reminder: Process First, Outcome

Second 197

Case Study #1: Finding Value in an

Unloved Industry

Sunrise Senior Living (SRZ) 198

Case Study #2: Money Machine South

of the Border

Ternium Steel 205

Case Study #3: A Tale of Two Shares

Mueller Water Products 214

ftoc.indd xftoc.indd x 9/2/09 6:56:42 PM9/2/09 6:56:42 PM