Value Investing For Dummies

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