The Intelligent Investor - The Definitive Book On Value Investing

The conclusion to be drawn from these figures is not that con- vertible issues are in themselves less desirable than nonconverti ...

mon shareholder, since if the stock goes down your bond will go down too. A conservative person is likely to say that beyond 125 ...

problem of “what to do” with a convertible when it goes up. We believe it still merits inclusion here. Like several of our refer ...

that the investor should look more than twice before he buys them. After such hostile scrutiny he may find some exceptional offe ...

Effect of Convertible Issues on the Status of the Common Stock In a large number of cases convertibles have been issued in con- ...

true if the preferred stock had a conversion privilege close to the market. The reverse is generally true at present. As a resul ...

of 1968 and again in 1970 the preferred sold 15 points higher than 11 ⁄ 2 shares of common. Its conversion privilege guarantees ...

finance.” In fact a standard procedure has developed for raising the capital for new real-estate ventures, affiliates of large b ...

The simplest and probably the best method of allowing for the existence of warrants is to add the equivalent of their market val ...

equally well to one invention or another—such as the following (in Bayard Taylor’s translation): Faust:Imagination in its highes ...

Practical Postscript The crime of the warrants is in “having been born.”* Once born they function as other security forms, and o ...

COMMENTARY ON CHAPTER 16 That which thou sowest is not quickened, except it die. —I. Corinthians, XV:36. THE ZEAL OF THE CONVERT ...

From 1957 through 2002, according to Ibbotson Associates, con- vertible bonds earned an annual average return of 8.3%—only two p ...

It’s expensive to trade small lots of convertible bonds, and diversifi- cation is impractical unless you have well over $100,000 ...

Commentary on Chapter 16 421 UNCOVERING COVERED CALLS As the bear market clawed its way through 2003, it dug up an old fad: writ ...

CHAPTER 17 Four Extremely Instructive Case Histories The word “extremely” in the title is a kind of pun, because the his- tories ...

The Penn Central Case This is the country’s largest railroad in assets and gross rev- enues. Its bankruptcy in 1970 shocked the ...

The fact that the company paid no income taxes over so long a period should have raised serious questions about the validityof ...

A railroad analyst would have long since known that the operating picture of the Penn Central was very bad in comparison with t ...

The rise and fall of Ling-Temco-Vought can be summarized by setting forth condensed income accounts and balance-sheet items for ...