Summary of How to Be a Value Investor

Looking for the book?
We have the summary! Get the key insights in just 10 minutes.

How to Be a Value Investor book summary
Start getting smarter:
or see our plans

Rating

6 Overall

8 Applicability

4 Innovation

6 Style


Recommendation

Lisa Holton describes the way value investors find bargain stocks. She looks at a variety of financial formulas that can help you unearth good deals. This is a useful primer for investors, since it offers clear explanations of financial ratios. The book includes plenty of specific examples of ways to apply formulas to a company’s financial statements. She clearly describes the contents of SEC documents and offers helpful advice about when to sell a stock. getAbstract recommends this book for beginner to intermediate investors, for those unfamiliar with "value investing," and for those interested in basic portfolio planning. This book focuses on the United States stock market and may be less useful in other countries.

In this summary, you will learn

  • What value investing is;
  • What tools and value measures to use to find bargains; and
  • Why intelligent investors are patient and do their homework.
 

About the Author

Lisa Holton is a business writer whose work has appeared in the Chicago Tribune and Better Homes and Gardens. She is the former business editor of the Chicago Sun-Times and a board member of the Society of American Business Editors and Writers.

 

Summary

Value investors buy a stock for less than they think it’s worth. Benjamin Graham, who died in 1976, created value investing theory. He outlined his strategies in two books, Security Analysis and The Intelligent Investor. According to Graham’s theory, a value stock is one whose price has sunk almost ...

More on this topic

Customers who read this summary also read

Warren Buffett and the Interpretation of Financial Statements
Warren Buffett and the Interpretation of Financial Statements
8
Security Analysis
Security Analysis
8
Warren Buffett's Ground Rules
Warren Buffett's Ground Rules
8
The End of Accounting and the Path Forward for Investors and Managers
The End of Accounting and the Path Forward for Investors and Managers
8
How a Pillar of German Banking Lost Its Way
How a Pillar of German Banking Lost Its Way
5
How to Speak Money
How to Speak Money
8

Related Channels

Comment on this summary