Value Investing: Tools and Techniques for Intelligent Investment

Hardcover

ISBN 10: 0470683597 ISBN 13: 9780470683590

Publisher: Wiley, 2009

"As with his weekly column, James Montier's Value Investingis a must read for all students of the financial markets. In shortorder, Montier shreds the 'efficient market hypothesis', elucidatesthe pertinence of behavioral finance, and explains the crucialdifference between investment process and investment outcomes.Montier makes his arguments with clear insight and spirited goodhumor, and then backs them up with cold hard facts. Buy this bookfor yourself, and for anyone you know who cares about theircapital!"
—Seth Klarman, President, The Baupost Group LLC

The seductive elegance of classical finance theory is powerful,yet value investing requires that we reject both the precepts ofmodern portfolio theory (MPT) and pretty much all of its tools andtechniques.

In this important new book, the highly respected andcontroversial value investor and behavioural analyst, James Montierexplains how value investing is the only tried and tested method ofdelivering sustainable long-term returns.

James shows you why everything you learnt at business school iswrong; how to think properly about valuation and risk; how to avoidthe dangers of growth investing; how to be a contrarian; how toshort stocks; how to avoid value traps; how to hedge ignoranceusing cheap insurance. Crucially he also gives real time examplesof the principles outlined in the context of the 2008/09 financialcrisis.

In this book James shares his tried and tested techniques andprovides the latest and most cutting edge tools you will need todeploy the value approach successfully.

It provides you with the tools to start thinking in a differentfashion about the way in which you invest, introducing the ways ofover-riding the emotional distractions that will bedevil thepursuit of a value approach and ultimately think and actdifferently from the herd.

From the Inside Flap:

"James Montier combines a profound understanding of behaviorialfinance with a fierce adherence to the tried and tested principlesof value-investing. He is always readable, thought-provoking and,above all, correct."
—Edward Chancellor, author of Devil Take theHindmost: A history of financial speculation

"James' latest effort is a must read. It combines great academicand practitioner approaches written in a humorous and entertainingstyle. It has practical real world examples that don't requireadvanced mathematics to comprehend. I advise everyone to read andstudy this wonderful book. All of my students now have ValueInvesting: Tools and Techniques for Intelligent Investment toadd to their required reading."
—Mark Cooper, Partner at Omega Advisors & AdjunctProfessor at Columbia Business School

"A preponderance of evidence shows that successful long-terminvesting requires a strong value orientation and a propertemperament, virtues commonly blunted by behavioural andincentive-based biases. Montier, a leading light in value investingand behavioural finance, shows you what’s wrong with standardinvestment thinking and offers important insight into how toimprove your process. Read Value Investing, live itslessons, and prosper."
—Michael J. Mauboussin, Chief Investment Strategist atLegg Mason Capital Management, and author of Think Twice:Harnessing the Power of Counterintuition

About the Author:

James Montier is a member of GMO's asset allocation team. Prior to that he was global strategist for Société Générale and Dresdner Kleinwort. He has been the top rated strategist in the annual extel survey for most of the last decade. He is also the author of three other books – Behavioural Finance (2000, Wiley), Behavioural Investing (2007, Wiley) and The Little Book of Behavioral Investing (Forthcoming, Wiley). James is a regular speaker at both academic and practitioner conferences, and is regarded as the leading authority on applying behavioural finance to investment. He is a visiting fellow at the University of Durham and a fellow of the Royal Society of Arts. He has been described as a maverick, an iconoclast, an enfant terrible by the press.