Table of Contents
Cover
Title Page
Copyright
Dedication
Acknowledgments
Introduction
The Bloodbath
The Bubbles
Notes
Chapter 1: The Gurus
Peter Lynch
Warren Buffett
Donald Yacktman
Notes
Chapter 2: Deep-Value Investing and Its Inherent Problems
Deep-Value Investing
The Problem with Deep-Value Investing
Notes
Chapter 3: Buy Only Good Companies!
What Are Good Companies?
Notes
Chapter 4: Again, Buy Only Good Companies—and Know Where to Find Them
Asset Plays
Turnarounds
Cyclicals
Slow Growers
The Stalwarts
Fast Growers
The Cyclicity of Businesses
Shooting for the Stars versus Shooting Fish in a Barrel
Notes
Chapter 5: Buy Good Companies at Fair Prices
Discounted Cash Flow Model
Reverse DCF
Fair P/E Ratio
Growth of Value
How Can a Good Company Be Sold at a Low Price?
Wouldn't It Be Even Better to Buy Good Companies at Lower Prices?
Summary
Notes
Chapter 6: Buy Good Companies: The Checklist
Checklist for Buying Good Companies at Reasonable Prices
The Warning Signs
Positive Signs
Notes
Chapter 7: Failures, Errors, and Value Traps
The Wrong Companies
Value Traps
Options, Margins, and Shorts
Notes
Chapter 8: Passive Portfolios, Cash Level, and Performance
A Basket of Good Companies
Dividend-Income Investing
How to Look at the Performances
Notes
Chapter 9: How to Evaluate Companies
Valuation Ratio Approach
Intrinsic Value Calculations
Rate of Return
Notes
Chapter 10: Market Cycles and Valuations
Over the Long Term, the Market Will Always Go Up
It Will Be Cyclical
Market Valuations
Projected Future Market Returns
Notes
Epilogue
About the Author
Index
End User License Agreement
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Guide
Cover
Table of Contents
Begin Reading
List of Illustrations
Introduction
Figure I.1: Price Chart of Corning
Chapter 2
Figure 2.1 Value Investing and Margin of Safety
Figure 2.2 Price vs. Value for Mediocre Business
Chapter 3
Figure 3.1 Price vs. Value for Good Businesses
Figure 3.2 S&P 500 Gain vs. Years of Profitability
Figure 3.3 S&P 500 Loss vs. Years of Profitability
Figure 3.4 Profit Margin Distribution
Figure 3.5 Gain vs. Profit Margin
Figure 3.6 ROIC vs. Capex Out of Cashflow
Figure 3.7 ROIC Distribution
Figure 3.8 Gain vs. ROIC
Figure 3.9 ROE Distributions
Figure 3.10 Gain vs. ROE
Figure 3.11 Growth Distribution
Figure 3.12 Gain vs. Growth
Figure 3.13 Gain vs. Predictability
Figure 3.14 Interest Coverage Profitable 10y
Figure 3.15 Interest Coverage Profitable 7/8y
Chapter 4
Figure 4.1 CVS DOW Net Income
Figure 4.2 Basic Materials Revenue
Figure 4.3 Basic Materials Net Income
Figure 4.4 Energy Net Income
Figure 4.5 Consumer Cyclical Net Income
Figure 4.6 Healthcare Net Income
Figure 4.7 Consumer Defensive Net Income
Chapter 5
Figure 5.1 CHD EPS vs. FCF
Chapter 6
Figure 6.1 Financial Strength Distribution
Figure 6.2 Profitability Distribution
Chapter 9
Figure 9.1 WMT P/E
Figure 9.2 LUV P/E
Figure 9.3 LUV EPS
Figure 9.4 GD Peter Lynch Chart
Figure 9.5 CVS Median P/E Chart
Figure 9.6 CVS Max/Min P/E Chart
Figure 9.7 LUV Median P/E Chart
Figure 9.8 LUV P/S Bands
Figure 9.9 JNJ P/S Bands
Figure 9.10 AMZN P/S Bands
Figure 9.11 BRK P/B Bands
Figure 9.12 Oil Price vs. XOM Net Income
Figure 9.13 CVX P/E, P/B, Shiller P/E
Chapter 10
Figure 10.1 Profit Margin and SP500
Figure 10.2 TMC/GDP
Figure 10.3 Projected Return vs. Actual Return
Figure 10.4 Insider Sales
Figure 10.5 Insider Buys
Figure 10.6 Insider Buy/Sell Ratio
List of Tables
Chapter 5
Table 5.1 Dependence of Value on the Growth Rate
Table 5.2 See's Candy Earnings and Discounted Earnings
Table 5.3 See's Candy Pretax Earnings as Discounted to the Year 1972 at Different Discount Rates