Table of Contents

  1. Cover
  2. Title Page
  3. Copyright
  4. Dedication
  5. Acknowledgments
  6. Introduction
    1. The Bloodbath
    2. The Bubbles
    3. Notes
  7. Chapter 1: The Gurus
    1. Peter Lynch
    2. Warren Buffett
    3. Donald Yacktman
    4. Notes
  8. Chapter 2: Deep-Value Investing and Its Inherent Problems
    1. Deep-Value Investing
    2. The Problem with Deep-Value Investing
    3. Notes
  9. Chapter 3: Buy Only Good Companies!
    1. What Are Good Companies?
    2. Notes
  10. Chapter 4: Again, Buy Only Good Companies—and Know Where to Find Them
    1. Asset Plays
    2. Turnarounds
    3. Cyclicals
    4. Slow Growers
    5. The Stalwarts
    6. Fast Growers
    7. The Cyclicity of Businesses
    8. Shooting for the Stars versus Shooting Fish in a Barrel
    9. Notes
  11. Chapter 5: Buy Good Companies at Fair Prices
    1. Discounted Cash Flow Model
    2. Reverse DCF
    3. Fair P/E Ratio
    4. Growth of Value
    5. How Can a Good Company Be Sold at a Low Price?
    6. Wouldn't It Be Even Better to Buy Good Companies at Lower Prices?
    7. Summary
    8. Notes
  12. Chapter 6: Buy Good Companies: The Checklist
    1. Checklist for Buying Good Companies at Reasonable Prices
    2. The Warning Signs
    3. Positive Signs
    4. Notes
  13. Chapter 7: Failures, Errors, and Value Traps
    1. The Wrong Companies
    2. Value Traps
    3. Options, Margins, and Shorts
    4. Notes
  14. Chapter 8: Passive Portfolios, Cash Level, and Performance
    1. A Basket of Good Companies
    2. Dividend-Income Investing
    3. How to Look at the Performances
    4. Notes
  15. Chapter 9: How to Evaluate Companies
    1. Valuation Ratio Approach
    2. Intrinsic Value Calculations
    3. Rate of Return
    4. Notes
  16. Chapter 10: Market Cycles and Valuations
    1. Over the Long Term, the Market Will Always Go Up
    2. It Will Be Cyclical
    3. Market Valuations
    4. Projected Future Market Returns
    5. Notes
  17. Epilogue
  18. About the Author
  19. Index
  20. End User License Agreement

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Guide

  1. Cover
  2. Table of Contents
  3. Begin Reading

List of Illustrations

  1. Introduction
    1. Figure I.1: Price Chart of Corning
  2. Chapter 2
    1. Figure 2.1 Value Investing and Margin of Safety
    2. Figure 2.2 Price vs. Value for Mediocre Business
  3. Chapter 3
    1. Figure 3.1 Price vs. Value for Good Businesses
    2. Figure 3.2 S&P 500 Gain vs. Years of Profitability
    3. Figure 3.3 S&P 500 Loss vs. Years of Profitability
    4. Figure 3.4 Profit Margin Distribution
    5. Figure 3.5 Gain vs. Profit Margin
    6. Figure 3.6 ROIC vs. Capex Out of Cashflow
    7. Figure 3.7 ROIC Distribution
    8. Figure 3.8 Gain vs. ROIC
    9. Figure 3.9 ROE Distributions
    10. Figure 3.10 Gain vs. ROE
    11. Figure 3.11 Growth Distribution
    12. Figure 3.12 Gain vs. Growth
    13. Figure 3.13 Gain vs. Predictability
    14. Figure 3.14 Interest Coverage Profitable 10y
    15. Figure 3.15 Interest Coverage Profitable 7/8y
  4. Chapter 4
    1. Figure 4.1 CVS DOW Net Income
    2. Figure 4.2 Basic Materials Revenue
    3. Figure 4.3 Basic Materials Net Income
    4. Figure 4.4 Energy Net Income
    5. Figure 4.5 Consumer Cyclical Net Income
    6. Figure 4.6 Healthcare Net Income
    7. Figure 4.7 Consumer Defensive Net Income
  5. Chapter 5
    1. Figure 5.1 CHD EPS vs. FCF
  6. Chapter 6
    1. Figure 6.1 Financial Strength Distribution
    2. Figure 6.2 Profitability Distribution
  7. Chapter 9
    1. Figure 9.1 WMT P/E
    2. Figure 9.2 LUV P/E
    3. Figure 9.3 LUV EPS
    4. Figure 9.4 GD Peter Lynch Chart
    5. Figure 9.5 CVS Median P/E Chart
    6. Figure 9.6 CVS Max/Min P/E Chart
    7. Figure 9.7 LUV Median P/E Chart
    8. Figure 9.8 LUV P/S Bands
    9. Figure 9.9 JNJ P/S Bands
    10. Figure 9.10 AMZN P/S Bands
    11. Figure 9.11 BRK P/B Bands
    12. Figure 9.12 Oil Price vs. XOM Net Income
    13. Figure 9.13 CVX P/E, P/B, Shiller P/E
  8. Chapter 10
    1. Figure 10.1 Profit Margin and SP500
    2. Figure 10.2 TMC/GDP
    3. Figure 10.3 Projected Return vs. Actual Return
    4. Figure 10.4 Insider Sales
    5. Figure 10.5 Insider Buys
    6. Figure 10.6 Insider Buy/Sell Ratio

List of Tables

  1. Chapter 5
    1. Table 5.1 Dependence of Value on the Growth Rate
    2. Table 5.2 See's Candy Earnings and Discounted Earnings
    3. Table 5.3 See's Candy Pretax Earnings as Discounted to the Year 1972 at Different Discount Rates