Invest Like a Guru: How to Generate Higher Returns At Reduced Risk With Value Investing
Adopt the investment strategy that built Warren Buffett's fortune
Invest Like a Guru provides an invaluable resource for high-quality-focused value investing, with expert insight and practical tools for implementation. Written by the man behind GuruFocus.com, this book expands on the site's value strategies and research tools to provide a primer for those exploring pathways to higher returns at lower risk. The book begins with an insightful explanation of high-quality-focused value investing concepts, then quickly moves into practical, detailed guidance on analysis, valuation, key factors, and risks to avoid. Case studies demonstrate real-world application of various analysis methods, and the discussion walks you through important calculations using real examples. Author Charlie Tian draws upon his own experiences and lessons learned to provide true insight on high-quality-focused value investing as a strategy, providing both reference and expert advice in this singularly useful guide.
Warren Buffett once said, "I would rather buy good companies at fair prices than buy fair companies at good prices." That's how he built his fortune, and his method is what we now call high-quality-focused value investing. This book shows you how to determine what constitutes "good companies" and "fair prices," with practical tools for real-world application.
- Learn the principles and concepts of high-quality-focused value investing
- Understand the analysis process and valuation of prospective investments
- Avoid the value traps that can trigger permanent losses
- Study clear examples of key ratios and calculations
We can't all become the next Warren Buffett, but we can boost returns while reducing risk using the right investment strategy. High-quality-focused value investing provides a path to profit, and Invest Like a Guru is the one-of-a-kind guidebook for getting on track.
Chapter 1 The Gurus 1
Chapter 2 Deep-Value Investing and Its Inherent Problems 24
Chapter 3 Buy Only Good Companies! 38
Chapter 4 Again, Buy Only Good Companiesand Know Where to Find Them 62
Chapter 5 Buy Good Companies at Fair Prices 80
Chapter 6 Buy Good Companies: The Checklist 101
Chapter 7 Failures, Errors, and Value Traps 115
Chapter 8 Passive Portfolios, Cash Level, and Performance 132
Chapter 9 How to Evaluate Companies 142
Chapter 10 Market Cycles and Valuations 168
About the Author 190
Charlie Tian, PhD, is the founder and CEO of the value-investing website GuruFocus.com. He is the creator of the website's value screeners, strategies, and research tools, which are used by more than half a million investors monthly, as well as professors and students from more than 100 universities worldwide.
Do you think you've discovered an error in this book? Please check the list of errata below to see if we've already addressed the error. If not, please submit the error via our Errata Form. We will attempt to verify your error; if you're right, we will post a correction below.
|Acknowledgement||ix||Errata in text
In "Acknowledgement", page ix,
paragraph 5, "Formula Investing"
|12||Errata in text
Page 12, first paragraph,
"His operating margin should be $40-$15=$25"
"His operating profit should be $40-$15=$25"
|154||Errata in text
On page 154, Figure 9.11,
"Berkshire Hathaway Inc. Class B"