New Era Value Investing: A Disciplined Approach to Buying Value and Growth Stocks - Hardcover

Tengler, Nancy

Hardcover

ISBN 10: 0471266086 ISBN 13: 9780471266082

Publisher: John Wiley & Sons Inc, 2003

Synopsis

A unique guide that combines the best of traditional value theory with an innovative approach to assessing value in low or non-dividend paying stocks

In the 1990s, America's focus on productivity and innovation led to huge gains in technology, communication, and healthcare stocks, and contributed to the transformation of the U.S. stock market from a value (dividend-paying orientation) to a growth (nondividend-paying) bias. During this time, forward thinking value managers began to develop analytical tools for valuing nondividend paying stocks. These tools allowed them to evaluate and identify the best investments in both traditional and nontraditional value sectors. At the forefront of this movement was author Nancy Tengler who, along with Noel DeDora, developed "Relative Value Discipline," an approach-which combines two proven methods for valuing growth stocks: Relative Dividend Yield and Relative-to-Price Sales. The combination of these approaches allows individuals to invest across the investment universe regardless of dividend policies. New Era Value Investing introduces the proven method known as Relative Value Discipline by combining the excitement of developing a new investment discipline with the lessons learned through the application of this new methodology in the real world. In addition to providing an insider's look at an investment manager's experience in adopting a new investment approach, this book creates a context for understanding the transformation of the U.S. economy, and offers expert insights beyond those of traditional value theory.

Nancy Tengler (San Francisco, CA) is President and Chief Investment Officer of Fremont Investment Advisors. She is coauthor of Relative Dividend Yield: Common Stock Investing for Income and Appreciation (Wiley: 0-471-53652-0). She has appeared on numerous financial radio and television programs, including CNN/fn and is frequently quoted in financial publications such as The Wall Street Journal.

About this title

About the Author

NANCY TENGLER joined Fremont Investment Advisors as President and Chief Investment Officer in 2000, and was named Chief Executive Officer of the firm in April 2001. At Fremont, Ms. Tengler oversees all the firm?s investments and is a member of the strategy team managing the Fremont New Era Value Fund. Ms. Tengler coauthored a book entitled Relative Dividend Yield: Common Stock Investing for Income and Appreciation, also from Wiley. She has appeared on numerous financial radio and television programs including CNBC, CNNfn, and Bloomberg, and has been quoted in financial publications such as The Wall Street Journal, Barron?s, Fortune, Forbes, and BusinessWeek.

From the Back Cover

Praise for New Era Value Investing

"No other book reveals so much about how a portfolio manager looks at the world. You will see how the transformation in the U.S. economy and stock market in the 1990s caused this seasoned value investor to transform her investing discipline to keep pace with the times, and you will gain invaluable insight into how an investment discipline is crafted to maximize gain and control risk for real, paying clients. This book is a must-read for every serious investor, and anyone who aspires to manage money for others."
?Dr. Arthur Laffer, Chairman, Laffer Associates

"If you invest real money in the stock market, you have to read this book. In New Era Value Investing, Nancy Tengler gives you an inside look at the real work a serious value investor does in constructing a diversified portfolio of high-quality stocks. Nancy?s review of the history of value investing is worth the price of admission by itself. She explains how to use her Relative Dividend Yield and Relative Price-to-Sales Ratio frameworks to assess the value of both old-fashioned manufacturing companies and growth companies. She shows you how to use her Twelve Fundamental Factors analysis as a work plan to evaluate the strength and value of a company, helping the reader to understand that value investing is a lot of work. The genius of the book, however, is the way Nancy helps the reader understand how to balance the disciplines needed to be a value investor and the flexibility you need to adapt value methods to changing market fundamentals. New Era Value Investing is a book you are going to keep on your shelf."
?Dr. John Rutledge, Chairman, Rutledge Capital

From the Inside Flap

Value investing has come a long way, from Graham and Dodd to Warren Buffett.

Traditionally, value investors seek to identify high-quality, income-generating companies that are currently selling at less than their true value. But in the 1990s, America?s focus on productivity and innovation led to huge gains in technology, communication, and healthcare stocks, transforming the U.S. stock market from a value (dividend-paying orientation) to more of a growth (nondividend-paying) bias. This market environment has challenged value-oriented investors who are dependent on yield or relative yield to find a discipline that can identify under-valued stocks.

In New Era Value Investing: A Disciplined Approach to Buying Value & Growth Stocks, author and investment expert Nancy Tengler addresses this "new era" in value investing by introducing you to an innovative investment strategy called "Relative Value Discipline" (RVD). This discipline will allow you to identify undervalued stocks by combining a more traditional value approach with a new methodology that focuses on identifying undervalued high-quality stocks that do not pay dividends.

New Era Value Investing lays the foundation for RVD by first discussing the cornerstones of this methodology:

• Relative Price-to-Sales Ratio (RPSR), a solid value approach to investing that allows investors to participate in technology and other fallen-angel growth stocks
• Relative Dividend Yield (RDY), which provides a good comparative tool for evaluating dividend-paying stocks
• The critical Twelve Fundamental Factors process used to evaluate a stock before investing in it

After a comprehensive discussion of the nuts and bolts of this innovative investment discipline, New Era Value Investing provides case studies that illustrate the application of this new methodology in the real world. You?ll gain valuable knowledge from a variety of examples including oil, pharmaceutical, technology, consumer, bank, and other classic fallen-angel growth stocks. You?ll also learn how to pull everything together by constructing a value-driven portfolio using RVD.

If you are looking for a way to apply value investing to the new stock market rising around us, you have found it. Relative Value Discipline allows professional as well as individual investors to invest in a wide range of stocks regardless of dividend policies. Filled with in-depth insight and expert advice, New Era Value Investing will enable you to enhance your own or your institution?s investment decisions, and achieve the elusive goal of superior long-term investment returns.

Edition details

• Publisher: John Wiley & Sons Inc
• Publication date: 2003
• Language: English
• ISBN 10: 0471266086
• ISBN 13: 9780471266082
• Binding: Hardcover
• Edition number: 1
• Number of pages: 240