J. V. Bruni and Company
1528 North Tejon Street
Colorado Springs, Colorado 80907
(719) 575-9880 or (800) 748-3409
J. V. Bruni and Company1528 North Tejon Street Colorado Springs, Colorado 80907 (719) 575-9880 or (800) 748-3409
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Value Investing,
by Martin Whitman.  Whitman, who has taught finance at both
Yale and Columbia, likes his stocks
“safe and cheap.” He has some 40
years of investing experience, and it is not an oxymoron to call his
approach to investing
“aggressive conservative” (Whitman’s term). While
most people rightfully identify the term
“value investor” with Benjamin
Graham or his disciples, Whitman is one of the most successful and
outspoken proponents of a type of value investing that’s different from
the traditional Graham approach. In Whitman’s brand of value investing,
the goal of analysis is to determine a business’s worth, especially in
the context of its possible or probable dynamics. This contrasts with a
focus on estimating the price at which a common stock might sell in a
market comprised of what Whitman refers to as
“OPMIs” (outside passive
minority investors). In more traditional value analysis stock
valuations depend on forecasted cash flows (discounted to the present),
while in Whitman’s analysis corporate valuation is linked to the quality
of corporate resources, the quantity of resources and to long-term
wealth creation. In this 1999 book Whitman explains and advocates his
“value” methods, while also explaining how his approach to investment
analysis differs from others. As he points out, unlike many investment
books, this one doesn’t require an understanding of higher math,
although a good knowledge of accounting would be helpful. |
“Value Investing is a must read for all thoughtful investors interested in a rational, disciplined, risk-averse template for successful long-term compounding.” Mason Hawkins
“An excellent book in investments. But, more importantly, this volume is a primer explaining to Main Street, especially Main Street businesspeople, how Wall Street really operates.” Eugene M. Isenberg |