The Nature of Value

How to Invest in the Adaptive Economy

Nick Gogerty

Columbia University Press

The Nature of Value

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Pub Date: July 2014

ISBN: 9780231162449

368 Pages

Format: Hardcover

List Price: $29.95£24.95

Pub Date: July 2014

ISBN: 9780231535212

368 Pages

Format: E-book

List Price: $28.99£23.95

The Nature of Value

How to Invest in the Adaptive Economy

Nick Gogerty

Columbia University Press

Using evolution as the template to understand growth, The Nature of Value takes a first-principles approach to explore the parallels between economic and ecological systems. Not only does Gogerty show how value is born out of tiny sparks of adaptive innovation, but he also explores the full scope of the economy as a complex network. He borrows from an array of disciplines—including anthropology, psychology, ecology, physics, sociology, and ethics—and, most revealing of all, examines how evolution's processes can help investors avoid risk and improve their allocation decisions.

Starting with a look at how innovation creates value for firms, Gogerty considers the economic niches where companies compete and explores how they can create defensive moats to enhance their ability to survive. Throughout the book, Gogerty demonstrates how this ecological understanding of the economy can help allocators improve their performance, supporting his arguments with extensive data and years of practitioner experience from scientific, social, and economic disciplines. Gogerty's practical takeaways, couched in vivid explanations and accompanied by intuitive illustrations, help investors of all backgrounds gain fresh insight into the behavior of corporations and the economy in general.
The Nature of Value is a well-reasoned, thought-provoking book that belongs in the library of every investor, professional and retail, value and growth. Reading the Markets Blog
[Gogerty's] arguments will stretch the reader's investment intellect. Library Journal
Gogerty... provides considerable sound advice to individual investors and professional capital allocators. The volume is packed with interesting information and questions serious investors should ask themselves, such as when and how a firm's earnings stream will ultimately die. CHOICE
Lucid and thought-provoking... The Nature of Value will help all investors attain a more robust understanding of the dynamics that create and sustain value. Financial Analysts Journal
Preface
Part I: Value
1. The Problem with Price? It's Not Value
2. Value and Why It Matters
3. The Theory of Value
Part II: Inos
4. Knowledge and Innovation
5. How Innovative Capabilities Enable Value Creation
6. Allocating to Firms with a Unique Capability Mix
Part III: Clusters
7. Birth and Growth of Clusters
8. Cluster Convergence, Maturation, and Death
9. Stable and Unstable Clusters
Part IV: Moats
10. The Value of Moats
11. How Moats Affect Cost, Competition, and Customer Forces
12. Managing Moats, for Value Creation Today and Wealth Tomorrow
Part V: The Economy
13. The Economy as a Macroprocessing Network
14. Monetary Shocks and Their Implications for the Allocator
Part VI: The Nature of Value
15. The Nature of Value Allocation
16. Conclusion
Notes
Index

Read the chapter, "The Problem with Price? It's Not Value":

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About the Author

Nick Gogerty is a private account strategist and general problem solver for the world's leading hedge funds, banks, technology firms, and scientific research institutes. He has worked as a quantitative developer and trader on a proprietary foreign exchange desk in London, advised major institutions and the government on risk, and been a serial entrepreneur at the convergence of technology and media. He is deeply interested in growing sustainable economic value and reducing global poverty.