Book of Value

The Fine Art of Investing Wisely

Anurag Sharma

Columbia University Press

Book of Value

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Pub Date: September 2016

ISBN: 9780231175425

360 Pages

Format: Hardcover

List Price: $29.95£24.95

Pub Date: September 2016

ISBN: 9780231541695

360 Pages

Format: E-book

List Price: $28.99£23.95

Book of Value

The Fine Art of Investing Wisely

Anurag Sharma

Columbia University Press

Financial markets are noisy and full of half-baked opinions, innuendo, and misinformation. With deep insights about investor psychology, Book of Value shows how to apply tools of business analysis to sort through the deceptions and self-deceptions in financial markets. Anurag Sharma joins philosophy with practical know-how to launch an integrated approach to building high-performance stock portfolios.

Investors at all skill levels should learn to be mindful of their psychological biases so they may better frame investment choices. Book of Value teaches novices that investing is not a game of luck but a skill—and it teaches the emotional and analytical tools necessary to play it well. Intermediate investors learn how to effectively control emotions when investing and think strategically about their investment program. Advanced investors see the formalization of what they already know intuitively: that the philosopher's methods for seeking truth can be profitably applied to make smart investments. A groundbreaking guide full of lasting value, Book of Value should be on the shelf of anyone who takes investing seriously.
Well organized and derived, Book of Value provides strong coverage of the philosophical grounding for value investing, a subject area that does not lend itself to academic presentation. David Nawrocki, Katherine M. Salisbury and Richard J. Salisbury, Jr. Endowed Professor of Finance, Villanova School of Business
Book of Value is long overdue. Let's hope it is the beginning of a backlash against the day-trading, quarterly profit obsession style investing that now dominates global markets. Anurag Sharma provides insight into an investment process that is so old-fashioned that it appears revolutionary. This is a true investment philosophy that has the added benefit of letting the investor sleep better at night. Bob Saul, managing director, Wood Creek Capital
Preface
Acknowledgments
Prologue: A Short History of Investing
Introduction: Noise
Part I: Illusion
1 Opinions and Beliefs
2 Correlation of Errors
3 The Dark Arts
4 Purveyors of the Dark Arts
5 Victims of the Dark Arts
Part II: Verity
6 Logic—Data—Doubt
7 Investing as a Negative Art
8 Shaping the Investment Thesis
9 How to Be a Wise Investor
10 The Art of Looking
Part III: Foundations
11 Price and Value
12 How to Value a Business
13 Risk and Uncertainty
14 The Simple Math of Valuation
15 Yield—Stability—Strength
Part IV: Diligence
16 Depth Analysis
17 Dive for Strength
18 Define Good Business
19 Watch the Game
20 Meet the Managers
Part V: Policy
21 Diversification
22 Another Way to Portfolio
23 Core Holdings
24 Growth
25 The Buffett Portfolio
Conclusion: Noise Control
Notes
Bibliography
Index

About the Author

Anurag Sharma is associate professor of management at the Eugene M. Isenberg School of Management, University of Massachusetts, Amherst.