Value Investing: A Balanced Approach Hardcover - 1999

From the jacket flap

"Marty Whitman is one of the country's savviest investors but also a great intellect. This book, the outgrowth of his teaching at Yale School of Management, is essential reading for anyone in today's turbulent markets." - Jeffrey E. Garten, Dean, Yale School of Management

An in-depth look at the modern realities of valuing companies, this comprehensive resource offers an antidote to conventional "ivory tower" financial theories. Value Investing shows investors how to use the same valuation techniques as are used in private business and by control investors. It replaces the practice of excessive price watching with a "bottom-up" approach to corporate analysis. Written by seasoned investor Martin Whitman, the book delivers a proven approach to what is a fruitful, yet potentially dangerous venture.

With clear explanations and straightforward guidelines, Whitman gives investors the tools necessary to fully understand and capitalize on the key to successful value investing: accurately valuing a business or valuing the workout potential of troubled companeis. Beginning with a description of what exactly value investing is, Whitman compares it with other investment disciplines, such as academic finance, Graham & Dodd fundamentalism, and conventional research "as it seems to be practiced by most 'sell' side analysts employed by broker/dealer research departments as well as most 'buy' side analysts who manage money."

The key concepts of value investing are then discussed, including corporate valuation, the substantive characteristics of securities, capital structure, promoters' and professionals' compensations, and the uses and limitations of financial accounting and narrative disclosure. Value Investing provides an analytic framework for evaluating the impact of real world factors, such as public policy and regulation, mergers and acquisitions, government and corporate finance, restructuring troubled companies, stockholder litigation, corporate power plays, and corporate share repurchase.

Thorough, accessible, and practical, Value Investing is essential reading for anyone seeking a well-rounded overview of this important topic.

"Marty Whitman is renowned for his uncanny instincts and insights in picking bargains in stocks and bonds. His book, "Value Investing: A Balanced Approach", is a real bargain. To benefit from decades of Marty's experience is invaluable and to have such a commonsense and realistic approach is an extra dividend." - Milton Cooper, Chairman, Kimco Realty Corporation