Reveals the proprietary framework used by an exclusive community of top money managers and value investors in their never-ending quest for untapped investment ideas Considered an indispensable source of cutting-edge research and ideas among the world's top investment firms and money managers, the journal The Manual of Ideas boasts a subscribers list that reads like a Who's Who of high finance. Written by that publication s managing editor and inspired by its mission to serve as an "idea funnel" for the world's top money managers, this book introduces you to a proven, proprietary framework for finding, researching, analyzing, and implementing the best value investing opportunities. The next best thing to taking a peek under the hoods of some of the most prodigious brains in the business, it gives you uniquely direct access to the thought processes and investment strategies of such super value investors as Warren Buffett, Seth Klarman, Glenn Greenberg, Guy Spier and Joel Greenblatt.
* Written by the team behind one of the most read and talked-about sources of research and value investing ideas * Reviews more than twenty pre-qualified investment ideas and provides an original ranking methodology to help you zero-in on the three to five most compelling investments * Delivers a finely-tuned, proprietary investment framework, previously available only to an elite group of TMI subscribers * Step-by-step, it walks you through a proven, rigorous approach to finding, researching, analyzing, and implementing worthy ideas
John Mihaljevic, CFA, is a Managing Editor of The Manual of Ideas, the monthly idea-oriented research publication for value-oriented investors, and a Managing Director of ValueConferences, a series of fully online investment conferences for value-oriented investors. He has also served as Managing Partner of the investment firm Mihaljevic Capital Management LLC since 2005. He is a member of Value Investors Club, an exclusive community of top money managers, and has won the club's prize for best investment idea. John is a trained capital allocator, having studied under Yale University Chief Investment Officer David Swensen and served as research assistant to Nobel laureate James Tobin. John holds a BA in economics, summa cum laude, from Yale and is a CFA charterholder. He resides in Zurich, Switzerland, with his wife, two sons, and a daughter.
Preface xiii CHAPTER 1 A Highly Personal Endeavor: What Do You Want to Own? 1 Give Your Money to Warren Buffett, or Invest It Yourself? 2 Cast Yourself in the Role of Capital Allocator 7 Owner Mentality 14 Stock Selection Framework 17 Key Takeaways 18 Notes 20 CHAPTER 2 Deep Value: Ben Graham Style Bargains Inelegant but Profi table Strategy of Cigar Butt Investing 23 The Approach: Why It Works 24 Uses and Misuses of Ben Graham Style Investing 34 Screening for Graham-Style Bargains 41 Beyond Screening: Working through a List of Deep Value Candidates 44 Asking the Right Questions of Graham-Style Bargains 49 Key Takeaways 53 Notes 54 CHAPTER 3 Sum-of-the-Parts Value: Investing in Companies with Excess or Hidden Assets 57 The Approach: Why It Works 58 Uses and Misuses of Investing in Companies with Overlooked Assets 60 Screening for Companies with Multiple Assets 64 Beyond Screening: Proven Ways of Finding Hidden Assets 69 Asking the Right Questions of Companies with Hidden Assets 78 Key Takeaways 81 Notes 82 CHAPTER 4 Greenblatt s Magic Search for Good and Cheap Stocks 83 The Approach: Why It Works 84 Uses and Misuses of Investing in Good and Cheap Companies 91 Screening for Good and Cheap Companies 98 Beyond Screening: Hope for Improvement Springs Eternal 102 Asking the Right Questions of Greenblatt-Style Bargains 106 Key Takeaways 113 Notes 114 CHAPTER 5 Jockey Stocks: Making Money alongside Great Managers 117 The Approach: Why It Works 118 Uses and Misuses of Investing in Jockeys 121 Screening for Jockey Stocks 131 Beyond Screening: Building a Rolodex of Great Managers 141 Asking the Right Questions of Management 146 Key Takeaways 150 Notes 151 CHAPTER 6 Follow the Leaders: Finding Opportunity in Superinvestor Portfolios 153 Superinvestors Are Super for a Reason 154 Uses and Misuses of Superinvestor Tracking 157 Screening for Companies Owned by Superinvestors 160 The Superinvestors of Buffettsville 163 Beyond Screening: What Makes a Company Attractive to Superinvestors? 171 Key Takeaways 175 Notes 177 CHAPTER 7 Small Stocks, Big Returns? The Opportunity in Underfollowed Small- and Micro-Caps 179 The Approach: Why It Works 180 Uses and Misuses of Investing in Small Companies 185 Screening for Promising Small- and Micro-Caps 189 Beyond Screening: Other Ways of Finding Compelling Small- and Micro-Cap Ideas 197 Asking the Right Questions of Small-Cap Prospects 207 Key Takeaways 212 Notes 214 CHAPTER 8 Special Situations: Uncovering Opportunity in Event-Driven Investments 215 The Approach: Why It Works 216 Uses and Misuses of Investing in Special Situations 220 Uncovering Special Situations 227 Asking the Right Questions of Special Situations 231 Key Takeaways 236 Notes 237 CHAPTER 9 Equity Stubs: Investing (or Speculating?) in Leveraged Companies 239 The Approach: Why It Works 241 Uses and Misuses of Investing in Equity Stubs 242 Screening for Equity Stubs 251 Beyond Screening: An Ambulance-Chasing Approach 253 Asking the Right Questions of Equity Stubs 257 Key Takeaways 264 Notes 265 CHAPTER 10 International Value Investments: Searching for Value beyond Home Country Borders 267 The Approach: Why It Works 269 Uses and Misuses of Investing in International Equities 272 Screening for International Equities 280 Beyond Screening: Riding the Coattails of Regional Experts 283 Asking the Right Questions of International Equities 285 Key Takeaways 291 Notes 292 References 295 About the Author 303 Index 305