Applied Value Investing: The Practical Application of Benjamin Graham and Warren Buffett's Valuation Principles to Acquisitions, Catastrophe Pricing ... Execution (McGraw-Hill Finance & Investing)

Given the numerous footnotes and references of this advanced book the novice investor may want to consult other resources before digging into this one. However, with a little effort, the novice will get through and find his efforts well worth it. The serious investors and students of the business will find it engaging and, at times, thought provoking. Klarman's endorsement indicates this book takes value investing to the next level, which certainly appears to be the case.I am impressed with the depth of authors knowledge of value investing and the attention to detail put into his analysis. All assumptions were transparent and rigorously explained in the context of the modern value investing framework.This book belongs on the shelf of every serious investor.

Great book for those looking to understand how to apply Graham and Dodd’s teachings. Easy to understand and follow. Very recommended.

Great book, has a smooth flow and highly recommended to help you garner a greater understanding of how to value investments.

This book provides a more holistic view on Value Investing, encompassing the perspective of Business Model and Strategy, to help the readers uderstand and clarify the source of sustainable competitive advantage, which is the root of so-called "Franchise" by Graham, Dodd and Buffett, i.e., a firm that generates economic profit (or income in excess of the opportunity cost of capital). The Value Drivers Diagram used in the book to illustrate the valuations for the four reference cases is a very good tool to put the linkage between the firm's value and its competitive advantages into context.I also would resonate a keen obervation of the author about Warren Buffett."Buffett rarely receives accolades for his strategic abilities, but I would argue that strategy is actually his core competency; valuation, investment, and M&A are simply the logical outputs of his strategic insights." (Page 194 of the book).However, I need to point out a not so insignificant mistake in the book, namely, the treatment of Growth Value on Page 56 & 80. Essentially, the author was using the Growth Value determination formula referenced in Bruce Greenwald's "Value Investing" (2001) book, however, the Growth Value formula was not correctly used in the book. In the original Greenwald's formula for Growth Value (Page 142 of Greenwald's book), The Net Present Value (NPV)of a Franchise with a constant Earning Growth Rate of G and a Return of Capital Rate, ROC, is: NPV = ((ROC-G)/(R-G))* Net Asset Value, Note that R is the Prevailing Cost of Capital and a Franchise's ROC has to be higher than R, the Prevailing Cost of Capital, so as to generate economic profits.When G is zero, this formula provides the Earning Power Value of a franchise.But in the Applied Value Investing book, the Growth Value is determined by the following formula (Page 56 & 80) which is incorrect and also independent of the earning growth rate (G): NPV = (ROC/R) * Earning Power Value = (ROC/R) * (Earning/R) = (ROC/R) * ((Net Asset Value * ROC)/R) = (ROC/R) * (ROC/R) * Net Asset ValueIn the original formula of Greenwald, Earning Growth Rate is explicit in the determination of the Growth Value at a certain constant Growth Rate, but in this book, somehow the Greenwald's formula was mistakenly adopted which became totally independent of the Earning Growth Rate.Nevertheless, this is still a great book to expand the horizon of Value Investing. I would rate this book with a 5-star if it didn't have the mistake on Growth Value calculation. So it ended up being a 4-star recommendation.C.T. Wu, Ph.D.Cupertino, CA

An excellent copy. Barring a black smudge mark on the book, the book is as good as new.

I had to return it. As it's basically the same as "Value investing: from graham to buffet and beyond". I couldn't find any value in it.

All I can say is "fabulous book".Worth reading!

Joe Calandro solidly lays out the case for investing building historically on Graham and Dodd but recognizing that today's market practitioners face an increasingly sophisticated capital market structure. As a student of and expert in risk assessment, Calandro makes the case that patient, value-based investing in the updated modern Graham-Dodd model would serve corporations well in pondering their M&A activity. He lays out how even the world's most admired holding company, Berkshire-Hathaway, had success with GEICO but made mistakes in their valuation profile for arguably their most important acquisition, General Reinsurance.Opportunities to value the key factors that seemingly drive corporations' M&A--franchise, growth, and margin of safety--are both values and risks, and should be viewed as such. But the upside potential must be carefully scrutinized and, as Calandro so poignantly discusses throughout his book, brought down the understandable, calculable factors that can be widely socialized and agreed. To do otherwise simply nourishes the hyperbole of the proposed merger and perpetuates that they hunch-based `synergy' model of merger will work. Really. This time the synergies will come true. For sure. We are thankful for Applied Value Investing and its ability to ignore hyperbole at the individual company level and particularly in the current market crises, whether it is in currency markets, real-estate markets, bond markets, or equity markets.So stop wondering if value investing is passe and the world has moved onto a more 'mature' model. A century ago, no wiser words were said: `those who cannot remember the past, are condemned to repeat it'...sage advice in this era of uncertainty and market disruption. This book is a MUST READ for serious investors and those who assess risk.

Fantástico! Boa didática e direto ao ponto.

Enjoying this book. Straight to the point and well written. I think if you want to get the most out of this book; you need to get competition demystified for the qualitative analysis and value investing by Bruce Greenwald to complete the collection.