2 of 4 people found the following review helpful
Validates several value investing approaches through data,
This review is from: Value Investing: Tools and Techniques for Intelligent Investment (Hardcover)
James Montier discusses several areas related to value investing. The book is a collection of articles he wrote. The book provides several insights - several of these have been tested for data going back a couple of centuries. Quite a bit of data / analysis overlaps amongst the different articles.
1. The first seven chapters are devoted to showing data and inferences that debunk the efficient market hypothesis. For those who have already bought into this argument, this may be a tad tiring.
2. The next seven chapters discuss theory and practical ways to incorporate behavioral aspects into investment decisions.
3. The third section discusses his philosophy of investing, focusing on process instead of outcomes, becoming aware of confirmation bias, becoming aware of action bias, and need for skepticism.
4. The fourth section validates value investing approaches by analyzing data from companies across the globe.
5. The fifth section deals with shorting from a value investing perspective. Past results in this section are the least compelling compared to the other sections.
6. The final section is a collection of articles analyzing financial events as they unfolded over the last couple of years around the globe.
The book could have been shorter if articles were combined into a cogent book form. We would, however, lose real-time aspects of analysis as events unfolded.