Value Investing Tools and Techniques
In Value Investing, the controversial behavioral analyst James Montier unravels how value investing has proven its worth to be the only method of delivering sustainable long-term returns. Montier shows the correct process of dealing with valuation and risk; how to be a contrarian; how to avoid the dangers of growth investing; how to avoid value traps; how to short stocks; and how to hedge ignorance using cheap insurance. He also gives real time examples of the principles outlined in the context of the 2008 financial crisis. This book also provides the latest and most cutting edge tools needed to deploy the value approach successfully.
"James Montier combines a profound understanding of behaviorial finance with a fierce adherence to the tried and tested principles of value-investing. He is always readable, thought-provoking and, above all, correct."
— Edward Chancellor, author of Devil Take the Hindmost: A history of financial speculation
"James' latest effort is a must read. It combines great academic and practitioner approaches written in a humorous and entertaining style. It has practical real world examples that don't require advanced mathematics to comprehend. I advise everyone to read and study this wonderful book. All of my students now have Value Investing: Tools and Techniques for Intelligent Investment to add to their required reading."
— Mark Cooper, Partner at Omega Advisors & Adjunct Professor at Columbia Business School
"A preponderance of evidence shows that successful long-term investing requires a strong value orientation and a proper temperament, virtues commonly blunted by behavioural and incentive-based biases. Montier, a leading light in value investing and behavioural finance, shows you what’s wrong with standard investment thinking and offers important insight into how to improve your process. Read value investing, live its lessons, and prosper."
— Michael J. Mauboussin, Chief Investment Strategist at Legg Mason Capital Management, and author of Think Twice: Harnessing the Power of Counterintuition
"As with his weekly column, James Montier's Value Investing is a must read for all students of the financial markets. In short order, Montier shreds the 'efficient market hypothesis', elucidates the pertinence of behavioral finance, and explains the crucial difference between investment process and investment outcomes. Montier makes his arguments with clear insight and spirited good humor, and then backs them up with cold hard facts. Buy this book for yourself, and for anyone you know who cares about their capital!"
— Seth Klarman, President, The Baupost Group LLC