Valuegrowth Investing [Paperback]

Glen Arnold (Author)

Book Description

Publication Date: January 15, 2002 | ISBN-10: 0273656252 | ISBN-13: 978-0273656258 | Edition: 1

"Drawing on the principles of some of the most successful investors of the last century, this book is both a valuable guide to the ideas of these gurus and a fascinating elucidation of the author's own investment philosophy of 'valuegrowth'." Romesh Vaitilingam, author of The Financial Times Guide to Using the Financial Pages "Glen Arnold explores and endorses all the investment concepts that I try to promote every week in the Investors Chronicle and his portraits of the great investors are right on the mark. Despite being a professor of finance, he is eminently readable." Alistair Blair, No Free Lunch column, Investors Chronicle "Market commentators and investment managers who glibly refer to growth' and value' styles as contrasting approaches to investment are displaying their ignorance, not their sophistication." Warren Buffett, 2001 Valuegrowth Investing answers the key question for investors: "What are the crucial elements leading to the successful analysis of shares?" To be a successful investor you have to be a good evaluator of businesses. There are too many so-called investors who occupy their time analysing the stock market, identifying trends and forecasting. Valuegrowth investors understand the companies in which they buy stocks as living businesses. This book draws on the rigorous investment techniques developed by the great investors of the last 100 years, such as Peter Lynch, Benjamin Graham and Warren Buffett. These ideas are combined with modern finance frameworks and with recent developments in the field of business strategy analysis, to create a new way of valuing shares. All investors are searching for the Holy Grail of a set of sound and profitable investment principles to guide them in share selections. Valuegrowth Investing shows that the Grail has been found. Valuegrowth Investing: *draws on investment principles discovered by world-renowned investors such as Peter Lynch and Warren Buffett *combines these principles with insights provided by recent developments in the field of business strategy to provide a coherent investment philosophy for tomorrow's investment strategies *describes what the ordinary investor should focus on and then offers evaluation techniques to identify underpriced shares *provides tools for analysing key investment factors *shows that successful investing does not require great intellect, it requires great principles.

Editorial Reviews

Review

"Drawing on the principles of some of the most successful investors of the last century, this book is both a valuable guide to the ideas of these gurus and a fascinating elucidation of the author's own investment philosophy of 'valuegrowth'." Romesh Vaitilingam, author of The Financial Times Guide to Using the Financial Pages

"Glen Arnold explores and endorses all the investment concepts that I try to promote every week in the Investors Chronicle and his portraits of the great investors are right on the mark.  Despite being a professor of finance, he is eminently readable." Alistair Blair, No Free Lunch column, Investors Chronicle

"An excellent introduction to rational stock picking...  Glen Arnold discusses the philosophies of some of the world's greatest contrarians, and shows how the non-expert can exploit the private investor's natural advantages by a patient, common-sense approach to fundamental analysis.  This is a book for every investor's library." Leo Gough, Investment writer and author of How the Stock Market Really Works

From the Back Cover

"Market commentators and investment managers who glibly refer to 'growth' and 'value' styles as contrasting approaches to investment are displaying their ignorance, not their sophistication."

—Warren Buffett, 2001

The stock market will present magnificent opportunities for those who know what to look for over the next ten years. It will also be littered with the same old traps for those unaware of the vital principles for good investing. Those using an intellectually cheap and easy way to fortune will find their path strewn with dangerous temptations. Valuegrowth investing will help investors move adeptly and avoid the potential pitfalls on the path to fortune.

Valuegrowth Investing:

• draws on investment principles discovered by world-renowned investors such as Peter Lynch and Warren Buffett
• combines these principles with insights provided by recent developments in the field of business strategy to provide a coherent investment philosophy for tomorrow's investment strategies
• describes what the ordinary investor should focus on and then offers evaluation techniques to identify underpriced shares
• provides tools for analyzing key investment factors
• shows that successful investing does not require great intellect, it requires great principles.

Valuegrowth investing is an integrated approach that brings together the requirements of growth and value in selected shares and answers the key question for investors: "What are the crucial elements leading to the successful analysis of shares?" It provides a sound intellectual framework for understanding the behavior of shares and making investment selections, as well as providing a bulwark against emotions corroding that framework.

Valuegrowth Investing is divided into two parts. The first part describes the philosophies of the world's most influential investors:

• Peter Lynch
• John Neff
• Benjamin Graham
• Philip Fisher
• Warren Buffett
• Charles Munger

The second part fuses the main elements of these approaches with modern strategic and financial analysis to develop a philosophy and set of guidelines for the valuegrowth investor.

All investors are searching for the Holy Grail of a set of sound and profitable investment principles to guide them in share selections. Valuegrowth Investing shows that the Grail has been found. It was hidden in the writings of the great investors of the twentieth century.

See all Editorial Reviews

Product Details

• Paperback: 256 pages
• Publisher: FT Press; 1 edition (January 15, 2002)
• Language: English
• ISBN-10: 0273656252
• ISBN-13: 978-0273656258
• Product Dimensions: 9.2 x 6.2 x 1.1 inches
• Shipping Weight: 1.6 pounds
• Average Customer Review: 4.0 out of 5 stars  See all reviews (4 customer reviews)
• Amazon Best Sellers Rank: #724,633 in Books (See Top 100 in Books)

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Customer Reviews

Most Helpful Customer Reviews

10 of 12 people found the following review helpful:

2.0 out of 5 stars Big Hat, No Cattle, April 26, 2002

By 

"wallingford_scott" (Austin, Texas United States) - See all my reviews

This review is from: Valuegrowth Investing (Paperback)

This book talks a good game about showing a new, long term way of investing. Unfortunately, no real action - just talk.

The book does a decent overview of different schools of thought on investing from some leading do-ers - Lynch, Buffet, Graham, etc. However, the book spends its pages on this "overview" and fails to get at the "what to do to acheive" the Valuegrowth promises. I found this book to talk a lot about a new way to view the world of investing, but virtually silent on how you do it. No one would disagree with selecting companies with good management or strong product pipelines, but the path an individual investor can take to answer these questions was strangely absent.

If you want a book that reads like a college essay on "comparing and contrasting" the views of Lynch, Buffet, etc. this would be fine. You won't see a path to improved investing results, but you will get an overview.

If you are interested in "how" to achieve improved investment results, this book will do nothing to help - although that sure is the implication from its PR. Save your money and your time.

9 of 11 people found the following review helpful:

5.0 out of 5 stars Excellent Summary of Great Investors, March 14, 2003

By A Customer

This review is from: Valuegrowth Investing (Paperback)

This is a great guide to investing, in my opinion. The author compiles profiles of the great practitioners of investing and distills their philosophies. Warren Buffett, Charlie Munger, Peter Lynch, John Neff, Benjamin Graham, and Philip Fisher are the thinkers he's tapped for his book, and he captures the essence very well.

Of course the author can't give you and exact how-to of investing. Much of it is business sense that can't be taught. However, with this as a guide, any person with business sense can succeed.

Also, one reviewer's comment that "the value of a company isn't SOLELY determined by fundamentals, but by investor PERCEPTION of those fundamentals, in addition to other factors" is completely wrong. Obviously you haven't been paying attention to the lessons of the great investors. A business has an intrinsic value regardless of market price. Market price is merely a vote of the value, not the value itself.

Be sure to read Chapter 8, "The Valuegrowth Investor," and Chapter 9, "The Analysis of Industries."

A copy of his "Key Principles of Buffett's and Munger's Approach" (pg 228) is going right above my desk.

5 of 8 people found the following review helpful:

5.0 out of 5 stars A pleasurable and fulfilling read!!!, April 3, 2002

By A Customer

This review is from: Valuegrowth Investing (Paperback)

I have read numerous books on the value approach to investing and I found this book to be the most complete and enjoyable to read. The book compares several value investors and provides insights into each of their investment approaches. What is unique about this book is that it consolidates all of the views presented in Part I of the book into one cohesive value investing approach in Part II. Comparing this book to others that talk about Warren Buffet, Benjamin Graham and others, I feel that this book got into the thought processes of the individuals better that any other book I have read on the subject. I am a business traveler and where ever I go I carry this book to use as a reference.