Skip to main content


Value Investing For Dummies, 2nd Edition

Peter J. Sander, Janet Haley

ISBN: 978-0-470-23222-4 March 2008 400 Pages


Want to follow in Warren Buffett’s investing footprints? Value Investing For Dummies, 2nd Edition, explains what value investing is and how to incorporate it into your overall investment strategy. It presents a simple, straightforward way to apply proven investment principles, spot good deals, and produce extraordinary returns.

This plain-English guide reveals the secrets of how to value stocks, decide when the price is right, and make your move. You’ll find out why a good deal is a good deal, no matter what the bulls and bears say, get tips in investing during jittery times, and understand how to detect hidden agendas in financial reports. And, you’ll uncover the keys to identifying the truly good businesses with enduring and growing value that continually outperform both their competition and the market as a whole. Discover how to:

  • Understand financial investments
  • View markets like a value investor
  • Assess a company’s value
  • Make use of value investing resources
  • Incorporate fundamentals and intangibles
  • Make the most of funds, REITs, and ETFs
  • Develop your own investing style
  • Figure out what a financial statement is really telling you
  • Decipher earnings and cash-flow statements
  • Detect irrational exuberance in company publications
  • Make a value judgment and decide when to buy

Complete with helpful lists of the telltale signs of value and “unvalue,” as well as the habits of highly successful value investors, Value Investing For Dummies, 2nd Edition, could be the smartest investment you’ll ever make!

Introduction 1

Part I: The What and Why of Value Investing 7

Chapter 1: An Investor’s Guide to Value Investing 9

Chapter 2: How Value Investors View the Markets — and Vice Versa 23

Chapter 3: The Value Investing Story 37

Part II: Fundamentals for Fundamentalists 57

Chapter 4: A Painless Course in Value Investing Math 59

Chapter 5: A Guide to Value Investing Resources 85

Chapter 6: Statements of Fact Part 1: Understanding Financial Statements 97

Chapter 7: Statements of Fact Part 2: The Balance Sheet 111

Chapter 8: Statements of Fact Part 3: Earnings and Cash Flow Statements 131

Chapter 9: Games Companies Play: Irrational Exuberance in the Financial Statements 151

Chapter 10: On Your Ratio Dial: Using Ratios to Understand Financial Statements 169

Part III: So You Wanna Buy a Business? 187

Chapter 11: Appraising a Business 189

Chapter 12: Running the Numbers: Intrinsic Value 195

Chapter 13: Running the Numbers: Strategic Financials 217

Chapter 14: Beyond the Numbers: Strategic Intangibles 239

Chapter 15: Warren’s Way 257

Chapter 16: Shopping for Value: Deciding When the Price Is Right 267

Part IV: Becoming a Value Investor 285

Chapter 17: Special Packages: Funds, REITs, and ETFs for Value Investors 287

Chapter 18: Shopping for Value: A Practical Approach 315

Part V: The Part of Tens 329

Chapter 19: Ten Signs of Value 331

Chapter 20: Ten Signs of Unvalue 337

Chapter 21: Ten Habits of Highly Successful Value Investors 343

Index 347