How to Think Like Benjamin Graham and Invest Like Warren Buffett

262

SUBJECT INDEX

AAA approach, at Coca-Cola, 237, 241

Accountability, 211

Accounting:

auditing and, 217–220

globalization and, 181–183, 219

internal financial controls, 218

for mergers and acquisitions, 154–155

Accounting goodwill, 137, 154

Accounting trickery, 52, 153–167

examples of aggressive accounting, 161–

167

perennial techniques, 153–157

satire of, 157–161

Accounts receivable turnover, 125–126

Acid test ratio, 122–123

Analyst effect, 11

Annual reports, 105–106

Anomaly effects, 10–11, 21

Arbitrage, 27, 79–80

Ask, 59–60

Asset allocation, 76–77

At-will employment, 173

Auditing, 217–220

Balance sheet, 134–138

Bargain hunting, 137

Behavioral finance, 47–49

Beta, 29–32

Bid, 59–60

Bid-as kspread, 60, 61

Big bath accounting, 154

Board of directors (seeCorporate gover-

nance)

Boo kvalue, 92–93, 134–138, 147

Boundarylessness, at General Electric, 223,

224, 226, 228, 229, 230

Branded products, 112, 136, 236–237

British South Sea bubble, 9–10

Brownian motion, 18

Bullet-train thinking, 227

Bulletin boards, 54, 56–57

Business climate, 85–86

Business value, 70–75

(See alsoValuation)

Business volatility, 31–32

Butterfly effect, 37–38, 47

Capital allocation, 215–217

Capital asset pricing model (CAPM), 29–32,

34, 72

Capital markets, globalization and, 186–

187

Capitalization of earnings method of valua-

tion, 95–96, 98, 99, 133, 138–142

Capitalization rate, 140

Care, duty of, 177–178

Cash-burn, 83, 159–160

Cash flow, in discounted cash flow method

of valuation, 96–98, 99, 133, 144–

145

Chaos(Gleick), 36–37

Chaos theory, 31, 36–46

butterfly effect and, 37–38, 47

fractals and, 44–46

hockey puck problem and, 38, 47

Lyapunov exponents and, 43–44

origins of, 37–38

phase portraits and, 38–43

pricing discontinuity and, 46–47

pricing persistency in, 46–47

time-series data and, 38–43, 45

Chartists, 24

Chat rooms, 54, 56–57

Chief executive officers (CEOs):

Michael Eisner, 230–235

Roberto Goizueta, 235–241

Jac kWelch, 222–230

key characteristics of, 221–222

selection of, 206–207

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