Value Investors: Lessons from the World's Top Fund Managers



[BOOKS] ⚡ Value Investors: Lessons from the World's Top Fund Managers ✯ Ronald Chan – E17streets4all.co.uk Investing legend Warren Buffett once said that success in investing doesn t correlate with IQ once you re above the level of Once you have ordinary intelligence, what you need is the temperament to c Investing legend Warren Buffett once said Lessons from Kindle Ï that success in investing doesn t correlate with IQ Value Investors: eBook Ü once you re above the level ofOnce you have ordinary intelligence, what you need is the Investors: Lessons from eBook ☆ temperament to control the urges that get other people into trouble in investing In an attempt to understand exactly what kind of temperament Buffett was talking about, Ronald W Chan interviewedvalue investing legends from around the world, learning how their personal background, culture, and life experiences have shaped their investment mindset and strategy The Value Investors Lessons from the World s Top Fund Managers is the resultFromyear old Irving Kahn, who worked closely with father of value investing Benjamin Graham and remains active today, andyear old Walter Schloss described by Warren Buffett as the super investor from Graham and Dodsville , to the co founders of Hong Kong based Value Partners, Cheah Cheng Hye and V Nee Yeh, and Francisco Garcia Parames of Spain s Bestinver Asset Management, Chan chose investment luminaries to help him understand the international appeal and success of value investing All of these men became strong advocates of the approach despite considerable age and cultural differences Chan finds out whyIn The Value Investors, readers will also discover how these investors, each of whom has a unique value perspective, have consistently beaten the stock market over the years Do they share a trait that allows this to happen Is there a winning temperament that turns the ordinary investor into an extraordinary one This book answers these questions and.Value Investors: Lessons from the World's Top Fund Managers

Is a well known author, some Lessons from Kindle Ï of his books are a fascination for readers like Value Investors: eBook Ü in the Value Investors: Lessons from the World's Top Fund Managers book, this is one of Investors: Lessons from eBook ☆ the most wanted Ronald Chan author readers around the world.

Value Investors: Lessons from the World's Top Fund
    Value Investors: Lessons from the World's Top Fund to understand exactly what kind of temperament Buffett was talking about, Ronald W Chan interviewedvalue investing legends from around the world, learning how their personal background, culture, and life experiences have shaped their investment mindset and strategy The Value Investors Lessons from the World s Top Fund Managers is the resultFromyear old Irving Kahn, who worked closely with father of value investing Benjamin Graham and remains active today, andyear old Walter Schloss described by Warren Buffett as the super investor from Graham and Dodsville , to the co founders of Hong Kong based Value Partners, Cheah Cheng Hye and V Nee Yeh, and Francisco Garcia Parames of Spain s Bestinver Asset Management, Chan chose investment luminaries to help him understand the international appeal and success of value investing All of these men became strong advocates of the approach despite considerable age and cultural differences Chan finds out whyIn The Value Investors, readers will also discover how these investors, each of whom has a unique value perspective, have consistently beaten the stock market over the years Do they share a trait that allows this to happen Is there a winning temperament that turns the ordinary investor into an extraordinary one This book answers these questions and."/>
  • ebook
  • 242 pages
  • Value Investors: Lessons from the World's Top Fund Managers
  • Ronald Chan
  • 27 July 2018
  • 1283546094

10 thoughts on “Value Investors: Lessons from the World's Top Fund Managers

  1. says:

    Value investing has always been a passion as has the debate on the efficient market theory In getting this book I hoped for some new perspective and insights from some of the masters on why they believe they are successful The interesting thing about value investors in general is they seem to be straight forward and accessible but never seem to give away their secrets This, along with their longevity, is probably a testament to their business acumen In the end, the book broke little new gr Value investing has always been a passion as has the debate on the efficient market theory In getting this book I hoped for some new perspective and insights from some of the masters on why they believe they are successful The interesting thing about value investors in general is they seem to be straight forward and accessible but never seem to give away their secrets This, along with their longevity, is probably a testament to their business acumen In the end, the book broke little new ground although I did appreciate that it wasinternationally represented than most value investing books In reading this I was took away the following attributes 1 LONGEVITY Most of these guys are old, as in 100 years old Seems like the ability to create a logical framework in which to work in all market conditions creates the ability to wait out the storms that create stress in investing In addition, these individuals seem to have done a good job cutting away extraneous items They have set schedules and tend to go home when the market closes I think it is telling since investments in general seem to be one of the most stressful poor health inducing jobs when you think of traditional Wall Street 2 PATIENCE CONVICTION INDEPENDENT THINKERS Their ability to shut out the noise seems amazing Warren Buffett s quote about Walter Schloss, That s one of his strengths, no one has much influence over him This has to do with tempermentthan almost anything else seems central to thoughtfulness They are able to sit on their hands for long periods of time when no opportunities are there, or wait quarters or years for a investment to pan out 3 WELL READ All these folks read a great deal and not just financial newspapers and annual reports Thought provoking books, history, science, etc Thomas Kahn I don t know of any successful investors who come up with good ideas without reading All in all this a good 50,000 foot view of value investors and what makes them tick As with most value investing biographies summarizes, it seems to simple to be true or useful, but in the end, the magic bullet is the combination of the simplicity of framework with the willingness to be patient that leads to the long term success A good read for background but not to be put alongside the great books on investing

  2. says:

    Interesting and educationalThis book isn t just about value investing It s about value investing throughout the world, especially in emerging markets where the risks and rewards can be substantial.Chan s approach to investing is summarized in Chapter 13 The Making of a Value Investor I recommend the reader read this last chapter first This is not to say that the stories about the careers of the twelve featured fund managers are not interesting In fact I found the mini biographies fascinati Interesting and educationalThis book isn t just about value investing It s about value investing throughout the world, especially in emerging markets where the risks and rewards can be substantial.Chan s approach to investing is summarized in Chapter 13 The Making of a Value Investor I recommend the reader read this last chapter first This is not to say that the stories about the careers of the twelve featured fund managers are not interesting In fact I found the mini biographies fascinating and even uplifting But the real value in this book is in the lessons from each of the investors.First lesson Have a humble portfolio, that is one that is diversified and consists of stocks chosen through a fundamental analysis of the underlying value of the companies There are two styles a diversified portfolio such as most investment professionals recommend and adaring approach, a concentrated portfolio such as kept by Warren Buffet Of course Buffet with his unparalleled expertise could afford to focus on his best bets Chan firmly recommends a diversified portfolio.Second lesson value analysis itself Here is where we learn why Chan travelled around the world to interview these very successful fund managers It turns out that while the fundamentals of value are almost always the same, the way to find them out differs according to the ability and opportunities of the investor The twelve people Chan interviewed show the reader how they did it Some investors lookclosely at competitive advantage, some areinterested in understanding the business itself, while others like Warren Buffet are expert at evaluating those who manage the company.Third lesson read widely and well Chan believes investment ideas don t just drop out or the air An understanding of the world beyond the actual markets can be invaluable in making investment decisions.Fourth lesson Go beyond the fundamentals This is especially true when investing in foreign markets Understanding national politics, the particular cultural history as well as macro events can help the investor make good decisions and avoid some very risky situations Fund manager Teng Ngiek Lian gives some good advice on this aspect of trading in Asian countries in Chapter 9 see especially pages 141 144.Fifth lesson an exit strategy based on when your investments have become fully valued, or their business conditions begin to deteriorate p 208 Sixth lesson have the right temperament for value investing Yes, it s hard to sit and wait years for the value of the companies you have invested in are finally recognized by the market But to be successful at value investing you have to be able to ride the ups and downs of the market like a boat firmly tethered to shore Often you just have to ignore the daily swings in prices and stay firm in your conviction that the value of the stocks you hold is true regardless of what the fickle market may say on any given day.Value investing that is, investing guided by fundamental analysis as opposed to technical analysis which measures trends would be the nearly unanimous approach by market professionals except for three annoying problems One, for a host of reasons ranging from complexity to outright fraud, you can t always get the real numbers.Two, the market is not always rational and efficient Think bubbles, recessions and depressions, greed and fear Three, to repeat for emphasis even though the stocks you buy may clearly be undervalued they may stay that way for a long time, not just for weeks and months but for years, and in some cases perhaps for a decade orI won t quote John Maynard Keynes here, but you know what happens if the long run is long enough It should be noted as Chan reminds us through a quote from Warren Buffett on page 87 that value analysis cannot be separated from an analysis of growth Value and growth, Buffet posits are joined at the hip Now for some bons mots from Chan s sparkling text To minimize the chances of encounteringshoddy business dealings one of the things that fund manager Thomas Kahn does is to make sure that executive pay is fair by industry standards and that top managers have a sizable portion of their net worth in the company through direct stock ownership rather than through the issuance of stock options or warrants p 41 It is better to buy a good business at a fair price than a fair business at a good price Warren Buffett p 56 The four most dangerous words in investing are This time it s different Sir John Templeton p 89 Go for a business that any idiot can run because sooner or later, any idiot probably is going to run it Peter Lynch p 90 Forecasts may tell you a great deal about the forecaster they tell you nothing about the future p 93 Warren Buffett again By the way, the guiding spirit behind the investing philosophy presented in this book comes primarily from original value investor Benjamin Graham and new school value investor Warren Buffett In essence, we look for the next big crash in emerging markets because in value investing, money is made after the crash, not before emerging markets fund manager Mark Mobius p 128 When it comes to emerging markets, you cannot rely on the numbers because they cannot be entirely trusted You have to go out there and start kicking tires Then you have to talk to company management, look into their eyes, and determine whether they are reliable Mark Mobius p 129 A market correction in an emerging economy can easily mean 20 to 30 percent, which is equivalent to a crash in a developed market Teng Ngiek Lian p 144 Warren Buffet improved his strategy by monetizing brand value, which was not a traditional value principle during the time of Benjamin Graham SPARX Group fund manager Shuhei Abe p 160 In the short run, the market is a voting machine, but in the long run it is a weighing machine Benjamin Graham p 71 and p 202 This is a valuable book for any investor Dennis Littrell, author of The World Is Not as We Think It Is

  3. says:

    A collection of superficial snapshots of a dozen or so value investors Its only redeeming feature is that it includes many international value investors that would be less well known to a North American audience.The author allowed the investors to resort to cliches too frequently, and really didn t do a good job of extracting useful information from them Overall, it was just ok.

  4. says:

    Wish this wasdetailed, its bit superficial. The varied investor profiles was a plus overall a good book for a novice to be investors.

  5. says:

    Interview books what s the novelty here Often long on philosophy, but short on actual advice Always dominated by hedge fund characters, as if all the authors have been as awestruck by the razzle dazzle and unconstrained world of hedge funds, as opposed to stodgy old long only equity management Further, almost without exception, the people profiled in these books are U.S based investors But on all counts, The Value Investors by Ronald Chan is definitely a separate breed Focused on lon Interview books what s the novelty here Often long on philosophy, but short on actual advice Always dominated by hedge fund characters, as if all the authors have been as awestruck by the razzle dazzle and unconstrained world of hedge funds, as opposed to stodgy old long only equity management Further, almost without exception, the people profiled in these books are U.S based investors But on all counts, The Value Investors by Ronald Chan is definitely a separate breed Focused on long only, value based equity managers, equally divided between U.S., Europe and Asia, the selection of people in the book is instead based on longevity of success, a true adherence to value and a top notch quality of human character.Although a handful of the investors being interviewed are household names in the financial world, the majority are surely new acquaintances, even for the seasoned market observer Naturally, the newcomer interviews or profiles really, as the author blends direct quotes with his own reasoning in a very fluent manner are the most interesting ones Apart from the novelty of getting to know truly successful European and Asian based investors, clear regional patterns emerge The long history of value investing in the U.S has forged a unified language of sorts, and way of reasoning that one instantly recognises Not so much with the non U.S investors, however As U.K investor Anthony Nutt puts it In the U.K., value investing has actually been around for a long period of time, but we often don t say the word because investing is all about seeking value in the first place so it s unnecessary to add the word to an investment scheme An investor I personally wished I had heard of ten years ago is Spanish based Francisco Garcia Parames yes, his record at Acciona subsidiary Bestinver is impeccable but his reasoning and personality shines even brighter Even so, the story and life success of the recently passed away American Walter Schloss is perhaps the highlight of the book The truest of all the inhabitants in Graham and Doddsville, it is almost shocking to learn that Schloss Associates only managed 350 mn at its peak, despite trouncing the market index over fifty years and being advertised by Buffett not once The Superinvestors of Graham and Doddsville speech of 1984 but twice Berkshire annual report 2006 The chapter on Schloss is very well researched and written clearly the best piece on him that I have ever read Schloss has always been an investor and a human being I have admired greatly When will the first in depth book of this outstanding investor with a second to none character be written Several of the investors discuss the almost contradictory nature of great long term performance records with the frequent subpar numbers being put up in yearly intervals True value stocks often lag behind the market for a long time as they per definition are cheap due to the market s attention being elsewhere Mr Market doesn t have time to price all stocks efficiently at all times Then suddenly, value is recognized and the subsequent reaction is often swift This creates the time dichotomy ofperiods of underperformance than outperformance that is experienced by many great investors But only in the secluded places of risk managers and quants is it possible to build a great record by daily, even increments Instead, individual performance from value investing tends to materialize in spurts Oakmark articulated this phenomena a couple of years back in a client letter, stating How can a batting average of.2 i.e outperformance 20 % of the time create a world leading performance But then again, it is puzzling indeed, that this still surprises people when the overall market has behaved like this forever.As a final side note, several of the investors profiled in the book voiced strong concerns about the current and future state of ETFs Considering the impact these leveraged hybrids between high frequency traders and mutual funds have on everyday volatility, it is hard not to agree As icing on the cake, when adding the often grossly underappreciated counterparty risk, ETFs are bound to cause severe problems down the road Our readers are hereby being served a notice

  6. says:

    Recently I encountered a friend, a follower of value investor He gave me a book to start with value investing when I ask him for investment ideas I consider myself as a small DIY investor, looking for a stock of the month idea to invest 100 every month Had a little bit of time during the Christmas holidays away from work, picked this book from local library and loved it, and recommend it for any newbies.

  7. says:

    A decent read The author has done an impeccable job by writing about extraordinary value investors whom DIY investors don t know about.

  8. says:

    Nice little read some of them had real humble beginnings..

  9. says:

    HUMBLE IS PROBABLY THE BEST WORD TO CHARACTERISE THE VALUE INVESTORS IN THIS BOOK IT TRANSLATES INTO THE MARGIN OF SAFETY CONCEPT, WHICH DEFENDS AGAINST UNCERTAINTY HUMILITY ALSO EQUIPS INVESTORS WITH OPEN MINDS AND TO ACCEPT CHANGE.Because Benjamin Graham wasn t very aggressive about making money he was less affected by fear and greed than many others.When Schloss entered Wall Street his goal was to not lose money, after seeing his Mum lose her inheritance in the 1929 crash and his Dad everyt HUMBLE IS PROBABLY THE BEST WORD TO CHARACTERISE THE VALUE INVESTORS IN THIS BOOK IT TRANSLATES INTO THE MARGIN OF SAFETY CONCEPT, WHICH DEFENDS AGAINST UNCERTAINTY HUMILITY ALSO EQUIPS INVESTORS WITH OPEN MINDS AND TO ACCEPT CHANGE.Because Benjamin Graham wasn t very aggressive about making money he was less affected by fear and greed than many others.When Schloss entered Wall Street his goal was to not lose money, after seeing his Mum lose her inheritance in the 1929 crash and his Dad everything investing on margin.Schloss learned that if he could simply survive in the market, just like surviving in the war, and not lose money, eventually he will make something.Post the Great Depression financial information wasn t easily accessible and investor sentiment was poor so many stocks traded below net net value Schloss changed to looking for companies selling below BV in the 1970s as net nets evaporated Closed the business in 2001 when he found finding companies selling less than BV became difficult also.Irving Khan became BG s teaching assistant in 1931 His repsect for his partents courage and determination prompted him to study very hard from a young age because he wanted to find a well paid job to one day support them.Discipline breeds independent thinking.At the age of 106 Irving was coming into the office 4 hours a day 5 days a week.The business valuation approach adds the company s future prospects for profit generation into the equation.A concentrated portfolio isof a bull market phenomenon.Gold is a substitute currency and cannot be printed.As a European who had read extensively about the rise and fall of many family empires within the region Francisco Parames realised that those who weather crisis after crisis are the ones that look for investments with sustainable rowth and value of the LT.Parames doesnt check quotes until 6pm each day.ROCE enable him to evaluate the quality of a business objectively Look for companies with ROCE 20%.Jupiter believes that a committe based approach can lead people into a rather weak compromise that ends in mediocre performance.Mark Mobius says to make decisions on what you have learned and act on the information you have gathered Never take other peoples advice when making investment decisions.With an open mind you can accept that the world changes and that you must contstantly learn new things to keep pace with it.The real distinction betweeen a good and average investor is really that the former constantly has good ideas about reinvesting capital to create a compounding effect.Investing is not about finding a fixed investment form, but about understanding your temperament compatibility towards investing and improving your style through time and experience Otherwise you are always fighting against yourself.Due to the uncertain world most value investors have diversified portfolios

  10. says:

    Pretty much an interview book with fund managers Don t read this book for valuation methodologies.

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