The Business of Value Investing.pdf

252 Notes

S & P 500 lost 38.5 percent, the second worst stock market performance since

1825.

6. “ Hedge Funds Lost 18.3% in 2008. ” New York Times , January 9, 2009: http://
   dealbook.blogs.nytimes.com/2009/01/08/hedge - funds - lost - 183 - in - 2008 -
   market - turmoil/.


7. Indeed, in 2008, Johnson & Johnson shares declined 10 percent versus a mar-
   ket decline of 38.5 percent for the S & P 500 Index.

Chapter 9

1. Seth Klarman, in Graham and Dodd, Security Analysis , 6th ed. (New York:
   McGraw - Hill, 2008), p. xvi.


2. Barron ’ s , December 18, 2008.


3. The terms “ bull market ” and “ bear market ” often are used to describe the gen-
   eral direction of stock market prices over a given period of time. A bull market
   identifies a rising stock market, so named because when a bull charges, it starts
   with its head down and pushes up. Similarly, a declining or bear market is so
   named because bears attack by first rising and coming down.


4. http://www.sirjohntempleton.org/articles_details.asp?a  16.


5. “ Sir John M. Templeton, Philanthropist, Dies at 95, ” New York Times , July 9,
   2008: http://www.nytimes.com/2008/07/09/business/09templeton - cnd.html.


6. John Rothchild, The Davis Dynasty: Fifty Years of Successful Investing on Wall Street
   (Hoboken, NJ: John Wiley & Sons, 2001), p. 137.


7. Graham and Dodd, Security Analysis , p. 35.


8. Mark Hirschey, Tech Stock Valuation (New York: Academic Press, 2003), pp. 1 – 2.

Chapter 11

1. “ Stocks Hit ’ 97 Level, Signaling Long Slump, ” Wall Street Journal , March 3, 2009.


2. Investors need to look no further than the credit crisis that engulfed the econ-
   omy in 2008 to appreciate the severe consequences that can face a business
   when credit is restricted or no longer available. Indeed, the credit crisis of 2008
   is a very severe example, but maximum severity should always be the litmus test
   for a value investor.


3. Peter Lynch, One Up on Wall Street (New York: Penguin, 1989), p. 198.


4. Value Line Investment Survey, Issue 9. July 24, 2009.


5. Ibid.


6. John Burr Williams, The Theory of Investment Value (Cambridge: Harvard
   University Press, 1938).


7. “ P & G to buy Gillette for $ 57B, ” CNNMoney.com , January 28, 2005: http://
   money.cnn.com/2005/01/28/news/fortune500/pg_gillette/.

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