Summary of Value Investing

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Value Investing book summary


9 Overall

10 Applicability

7 Innovation

7 Style


This is a very lucid, practical introduction to the principles of value investing. It is detached, relatively objective considering the authors’ bias in favor of the subject, doesn’t hype or hard-sell and, on the whole, would be a valuable addition to any investor’s bookshelf. If you’re a relative beginner, your shelf will also need to include a dictionary of financial terms - the authors assume you already know the vocabulary. And who is the Graham cited in the title? He is Benjamin Graham, who all but invented security analysis. With coauthor David Dodd, he produced the book Security Analysis in 1934. Later, Graham wrote The Intelligent Investor. Both books are investment classics and have been revised and re-issued. This one may endure, as well, based on its thorough exposition on how to value a company and its instructive profiles of value investing heavyweights. recommendation: strong buy, long term hold.

In this summary, you will learn

  • the basic principles of value investing.

About the Authors

Bruce C.N. Greenwald is the Robert Heilbrunn Professor of Finance and Asset Management at the Columbia University Graduate School of Business, where Michael van Biema is a member of the finance faculty. Judd Kahn taught history, served in city government and worked as a securities analyst, CFO and management consultant. Paul D. Sonkin is investment manager of the Hummingbird Value Fund. All four authors are members of Morningside Value Investors, LLC, an investment advisory firm.



Why Value Investing Works
Modern investment theory holds that the market is efficient. If that is true, then a stock price already reflects all the available information about a company. And, thus, you can’t beat the market except by chance. Modern investment theory also defines risk as...

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