Product Description

"This book deserves a place on every serious investor’s shelf."
–FINANCIAL TIMES

"A must-read for all disciples of value investing. In 1934, Graham and Dodd created fundamental security analysis. Greenwald reinforces the worth of this approach, incorporates new advances, and takes their work into the twenty-first century."
–Mario J. Gabelli, Chairman, Gabelli Asset Management, Inc.

"The new title most deserving of your time is Value Investing . . . . Its authors aim to place their work next to Benjamin Graham’s 1950 classic, The Intelligent Investor. My 1986 edition came with Warren Buffett’s endorsement–‘by far the best book on investing ever written.’ Value Investing is better."
–Robert Barker, BusinessWeek

"Greenwald is an economist (PhD from MIT) who caught the value bug. He has updated and expanded Graham’s ideas, and his summer seminars ($2,900 for two days) have become popular with everyone from well-known money managers to Columbia MBAs who couldn’t get into Greenwald’s class. But now there is a cheaper way . . . Greenwald probably won’t outsell Graham, but I think he ought to."
–Paul Sturm, SmartMoney magazine

"Greenwald’s book is a lively defense of, and handbook for, value investing, complete with glimpses of how it’s practiced by pros like Warren Buffett and Mario Gabelli."
–George Mannes, TheStreet.com

"Essential reading for anyone looking for a fresh perspective on analyzing companies and selecting investments."
–Pat Dorsey, Morningstar.com

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A Small Warning        Rating:

This is a useful book, but potential buyers might want to consider that it was originally published (in hardback) in 2001. The 2004 paperback at hand appears to have few or no textual differences from the original edition. Thus investors and potential investors who want to see some factoring-in of the 2007-2008 housing depression and ensuing stock market crash might be disappointed. Even the most general and theoretical work can be helped with a little real-world reference, because it's from the real world and not spreadsheets that profit is taken, if there's any to be "took" ;)

Decent, but there are many better books out there.        Rating:

Greenwald is a horrendously dry, boring, and confusing author to read. This book isn't meant to be entertainment, but educational; but his writing style practically ensures you will have a horrible time reading this.

The first half of the book presents the authors theories of securities analysis. He gives several "case studies", but they offer little help in real-world application once you have put the book down. The ideas given in here are coated in Graham-esque language and philosophy, but at the core it is the author's flimsy and not entirely well-thought out theories which are rooted in the efficient market hypothesis. Some of the things he says are correct, but the whole idea leaves you with several, "yea, but..." sort of questions.

The second half of the book presents mini-biographies of a few well-known "value investors". These have some merit, but you can find better ones elsewhere.

Updating (or learning) Your Value Investing Playbook        Rating:

After reading the fine book 'Applied Value Investing', I knew that I needed to go to the source material which this book by Bruce Greenwald is. Though being introduced and coming late to this material, as it was first published in early 2001, it nevertheless and much like the bible 'Security Analysis', more then holds its own today in 2010 and surely beyond.

The book truly updates my own analysis and could improve anyone's value analysis process from expert to novice. In addition, the back-half of the book espouses the different types of the value playbook one can use by reviewing several value camp practitioners from Mario Gabelli, Seth Klarman, Michael Price, Walter and Edward Schloss, and of course Warren Buffett.

As a side note: An updated edition by Greenwald is due in early 2011 which I have already pre-ordered.

Reference:
Applied Value Investing: The Practical Application of Benjamin Graham and Warren Buffett's Valuation Principles to Acquisitions, Catastrophe Pricing and Business Execution

Very clear indeed.        Rating:

Absolutely right, buy strong companies for cheap. Problem this year, of course, is that they still keep getting cheaper, so my timing has been off a lot. Nonetheless it's the right system. Now if we could only foretell the bottom....

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