A Modern Approach to Graham and Dodd Investing

ISBN-13: 9780471584155 / Angielski / Twarda / 2004 / 352 str.

Thomas P. Au

Opis

An updated approach to classic security analysis
The principles of value investing outlined by Graham and Dodd in the 1940s continues to be used today by individuals and companies who face challenging investment decisions. A Modern Approach to Graham and Dodd Investing examines the classic Graham and Dodd approach to valuation and updates it for the twenty-first century. Thomas Au, a credentialed analyst with a leading insurance company and an ex-Value Line analyst, reworks the basics of value investing from net present value, financial statement analysis, and return on capital to return and leverage, asset allocation, and diversification. Through case studies and real-time analysis, A Modern Approach to Graham and Dodd Investing presents readers with examples that will make analysis and portfolio theory more relevant and powerful.
Thomas P. Au (Hartford, CT) is a Vice President and Portfolio Manager for the investment arm of a large insurance and healthcare provider. His specialty is emerging and international markets. He received his BA, cum laude, with a double major in economics and history, from Yale University, and an MBA in finance from New York University.

Recenzje

A worthwhile read for investors interested in fundamental analysis following along upon the concepts of Benjamin Graham and David Dodd. The author remains true to the general principles and discipline of the two original fundamental investors when evaluating . . . more modern investments. Many readers may find these sections of particular interest. . . Mr. Au has attempted to extrapolate the thinking of two great investment authors of yesteryear. On balance, he has successfully completed the mission. (Seeking Alpha)

Spis treści

PREFACE xi

PART I Basic Concepts 1

CHAPTER 1 Introduction 3

CHAPTER 2 Investment Evaluations and Strategies 16

PART II Fixed–Income Evaluation 29

CHAPTER 3 Foundation of Fixed Income 31

CHAPTER 4 Fixed–Income Issues of Corporations 47

CHAPTER 5 Distressed Fixed Income 63

PART III Equity Evaluation 79

CHAPTER 6 Cash Flows and Capital Expenditures 81

CHAPTER 7 Analysis of Asset Value 96

CHAPTER 8 Some Observations on the Value of Dividends 112

CHAPTER 9 Some Warnings about the Use of Earnings in Valuation 127

CHAPTER 10 Sales Analysis 143

PART IV Special Vehicles for Investment 157

CHAPTER 11 A Graham and Dodd Approach to Mutual Funds 159

CHAPTER 12 A Graham and Dodd Approach to International Investing 174

CHAPTER 13 A Graham and Dodd View of Real Estate 187

PART V Portfolio Management 203

CHAPTER 14 The Question of Asset Allocation 205

CHAPTER 15 The Concepts of Graham and Dodd versus Modern Theories and Practices 220

CHAPTER 16 Case Studies in Graham and Dodd Investing 234

CHAPTER 17 A Real–Time Experiment 257

PART VI Some Contemporary Issues 271

CHAPTER 18 A Historical View of the Dow and the Market 273

CHAPTER 19 Some Disquieting Thoughts on Excessive Credit Creation 292

CHAPTER 20 Generational Cycles in the American Stock Market 306

ENDNOTES 321

BIBLIOGRAPHY 327

INDEX 329

O autorze

THOMAS P. AU is a Vice President and Portfolio Manager for the investment arm of a large insurance and healthcare provider. His specialty is emerging and international markets. He has also worked for Unifund, an emerging markets firm in Geneva, Switzerland. Previously, he was an analyst for Value Line, an investment information company in New York City, serving in various capacities from 1983 to 1994. Mr. Au has received his BA, cum laude, with a double major in economics and history, from Yale University, and an MBA in finance from New York University.

Blurb

Reviews of A Modern Approach to Graham and Dodd Investing

"What happened in the market? What lies ahead? Investors should be required to read Tom Au’s A Modern Approach to Graham and Dodd Investing. Tom delivers a commonsense road map for baby boomer professional and individual investors navigating the treacherous investment waters. This is the best investment book I have read in twenty–three years."
Scott Kingsley Swift, Vice President, Merrill Lynch, CFM

"Many times I’ve found myself reading through investment classics, wishing that they were more relevant to our present world; the information companies report, market conditions, today’s business culture, and the expectations modern stock investors have developed based on a large set of alternative investment choices. Finally, my wish, and those of other investors who’ve felt the same, has been granted by Thomas Au and his soon–to–be classic, A Modern Approach to Graham and Dodd Investing."
Marc H. Gerstein, Director of Investment Research, Reuters

"In an age of easy money and easy credit, Thomas Au’s A Modern Approach to Graham and Dodd Investing reminds us that successful investing is a product of long–term prudent strategies based on disciplined investment decisions. This work is an excellent and timely in–depth analysis on value investing which is a must read, particularly during these volatile financial times."
David Marshall, President, Emerson Partners, LLC

"This is an informative, readable book that presents a comprehensive framework for practitioners of deep value investing. Thomas Au, a proven investor in the value world, shows that the principles of value investing can be applied to a broad range of investment issues from analyzing the key line items on the corporate balance sheet to international investing and dynamic asset allocation. Au’s underlying message is that value investors have long time horizons, both in looking back at historical precedents and in looking forward, well beyond the next quarterly earnings report. Most importantly, the book is filled with real–time, real–world examples where Au applied the value approach to construct a winning portfolio. Au is gold!"
Leland Crabbe, Portfolio Manager, Credit Suisse Asset Management

"A refreshing look at the methods for ensuring a margin of safety in one’s investments developed by one of the true masters. Sadly, in this liquidity–driven bubble market, investors have once again lost their way. This book will grow in acknowledgement as today’s stock market ‘sheep’ are once again led to their slaughter for having ignored such wisdom."
Richard J. Greene, Thunder Capital Management

"Tom Au’s update of Graham and Dodd’s security analysis is a must read for any serious investor. With the technology bubble behind us, investors have come back to the proven principles of value investing. Tom has put together a powerful framework for value investing in the twenty–first century."
Gerard Watson, Managing Director, Santander Investments