Invest Like a Guru : How to Generate Higher Returns At Reduced Risk With Value Investing

Introduction -- The gurus -- Deep-value investing and its inherent problems -- Buy only good companies! -- Again, buy only good companies! -- Buy good companies at fair prices -- Buy good companies: the checklist -- Failures, errors, and value traps -- Passive portfolios, cash level, and performance -- How to evaluate companies -- Market cycles and valuations -- Epilogue.;"Adopt the investment strategy that built Warren Buffett's fortune Invest Like a Guru provides an invaluable resource for high-quality-focused value investing, with expert insight and practical tools for implementation. Written by the man behind GuruFocus.com, this book expands on the site's value strategies and research tools to provide a primer for those exploring pathways to higher returns at lower risk. The book begins with an insightful explanation of high-quality-focused value investing concepts, then quickly moves into practical, detailed guidance on analysis, valuation, key factors, and risks to avoid. Case studies demonstrate real-world application of various analysis methods, and the discussion walks you through important calculations using real examples. Author Charlie Tian draws upon his own experiences and lessons learned to provide true insight on high-quality-focused value investing as a strategy, providing both reference and expert advice in this singularly useful guide. Warren Buffett once said, 'I would rather buy good companies at fair prices than buy fair companies at good prices.' That's how he built his fortune, and his method is what we now call high-quality-focused value investing. This book shows you how to determine what constitutes 'good companies' and 'fair prices, ' with practical tools for real-world application. Learn the principles and concepts of high-quality-focused value investing Understand the analysis process and valuation of prospective investments Avoid the value traps that can trigger permanent losses Study clear examples of key ratios and calculations We can't all become the next Warren Buffett, but we can boost returns while reducing risk using the right investment strategy. High-quality-focused value investing provides a path to profit, and Invest Like a Guru is the one-of-a-kind guidebook for getting on track"--Provided by publisher.

Adopt the investment strategy that built Warren Buffett's fortune

Invest Like a Guru provides an invaluable resource for high-quality-focused value investing, with expert insight and practical tools for implementation. Written by the man behind GuruFocus.com, this book expands on the site's value strategies and research tools to provide a primer for those exploring pathways to higher returns at lower risk. The book begins with an insightful explanation of high-quality-focused value investing concepts, then quickly moves into practical, detailed guidance on analysis, valuation, key factors, and risks to avoid. Case studies demonstrate real-world application of various analysis methods, and the discussion walks you through important calculations using real examples. Author Charlie Tian draws upon his own experiences and lessons learned to provide true insight on high-quality-focused value investing as a strategy, providing both reference and expert advice in this singularly useful guide.

Warren Buffett once said, "I would rather buy good companies at fair prices than buy fair companies at good prices." That's how he built his fortune, and his method is what we now call high-quality-focused value investing. This book shows you how to determine what constitutes "good companies" and "fair prices," with practical tools for real-world application.

• Learn the principles and concepts of high-quality-focused value investing
• Understand the analysis process and valuation of prospective investments
• Avoid the value traps that can trigger permanent losses
• Study clear examples of key ratios and calculations

We can't all become the next Warren Buffett, but we can boost returns while reducing risk using the right investment strategy. High-quality-focused value investing provides a path to profit, and Invest Like a Guru is the one-of-a-kind guidebook for getting on track.

Cover -- Title Page -- Copyright -- Contents -- Acknowledgments -- Introduction -- The Bloodbath -- The Bubbles -- GuruFocus.com -- Chapter 1: The Gurus -- Peter Lynch -- "Earnings, Earnings, Earnings"--"Companies That Have No Debt Can't Go Bankrupt" -- "Go for a Business That Any Idiot Can Run" -- Warren Buffett -- "It's Far Better to Buy a Wonderful Company at a Fair Price Than a Fair Company at a Wonderful Price" -- "It's Crazy to Put Money in Your Twentieth Choice Rather Than Your First Choice" -- "Our Favorite Holding Period Is Forever" -- Donald Yacktman -- Buy Good Businesses That Are Not Cyclical -- Management -- Set Your Hurdle Rate -- Chapter 2: Deep-Value Investing and Its Inherent Problems -- Deep-Value Investing -- Tangible Book Value -- Net Current Asset Value -- Net-Net Working Capital -- Net Cash -- The Problem with Deep-Value Investing -- Erosion of Value Over Time -- Timing and Pain -- Not Enough Stocks Qualify -- Tax Inefficiency -- Chapter 3: Buy Only Good Companies! -- What Are Good Companies? -- No Worries About Timing -- More Forgiving with Purchase Price -- No Risk of Permanent Loss of Capital -- More Tax-Efficient -- You Sleep Better -- Management -- Financial Strength -- Valuation -- 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 -- Chapter 5: Buy Good Companies at Fair Prices -- Discounted Cash Flow Model -- Growth Rates -- Number of Years for Growth and Terminal Stage -- Discount Rate -- Excess Cash -- Earnings vs. FCF -- Margin of Safety -- 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? Adopt the investment strategy that built Warren Buffet's fortune Invest Like a Guru provides an invaluable resource for high quality-focused value investing, with expert insight and practical tools for implementation. Written by the man behind GuruFocus.com, this book expands on the site's value strategies and research tools to provide a primer for those exploring strategies for higher returns at lower risk. The book begins with an insightful explanation of high quality-focused value investing concepts, then quickly moves into practical, detailed guidance on analysis, valuation, key factors, and risks to avoid. Case studies demonstrate real-world application of various analysis methods, and the discussion walks you through important calculations using real examples. Author Charlie Tian draws upon his own experiences and lessons learned to provide true insight on high quality-focused value investing as a strategy, providing both reference and expert advice in this... Chapter 6: Buy Good Companies: The Checklist; Checklist for Buying Good Companies at Reasonable Prices; The Warning Signs; Positive Signs; Chapter 7: Failures, Errors, and Value Traps; The Wrong Companies; It Has a Hot Product with a Bright Future; It Has a Hot Product that Everyone Is Buying; It Is at the Peak of the Cycle; It Is Growing Fast; It Is an Aggressive Serial Acquirer; Its Business Is Too Competitive; It Does Everything to Gain Market Share; It Faces Regulatory Landscape Shifts; It Becomes Aged; Value Traps; Options, Margins, and Shorts The Gurus -- Deep-value Investing And Its Inherent Problems -- Buy Only Good Companies! -- Again, Buy Only Good Companies, And Know Where To Find Them -- Buy Good Companies At Fair Prices -- Buy Good Companies: The Checklist -- Failures, Errors, And Value Traps -- Passive Portfolios, Cash Level, And Performance -- How To Evaluate Companies -- Market Cycles And Valuations. Charlie Tian. Includes Bibliographical References And Index. Introduction The gurus Deep-value investing and its inherent problems Buy only good companies! Again, buy only good companies and know where to find them Buy good companies at fair prices Buy good companies: the checklist Failures, errors, and value traps Passive portfolios, cash level, and performance How to evaluate companies Market cycles and valuations Epilogue.