Buch, Englisch, 384 Seiten, Format (B × H): 161 mm x 234 mm, Gewicht: 610 g
Reihe: Wiley Finance Editions
Buch, Englisch, 384 Seiten, Format (B × H): 161 mm x 234 mm, Gewicht: 610 g
Reihe: Wiley Finance Editions
ISBN: 978-1-118-25007-5
Verlag: John Wiley & Sons
How to Pick a Stock is written for the contrarian investor who wants an investing method that is based on cash flow facts, not on media hype and speculative impulse. This book combines an accessible presentation of a contrarian investment model and the ValuFocus tool that offers a highly studious, detailed explanation of understanding a company's true intrinsic value.
If you can calculate a company's intrinsic value on the basis of knowing if the market is currently under, fairly, or over pricing its stock, then it is possible to invest wisely in the stock market. Investors who want to buy undervalued stocks, or sell (short) overvalued ones will find this book immensely useful. The ValuFocus investing tool calculates the intrinsic value of every company in their database automatically. Thus, an individual investor can become an "A" student of a modeling process, or can go right ahead in using this tool to pick stocks and manage their own portfolio. Additionally, this book helps to develop an enhanced framework to fundamental equity valuation.
* Contains the ValuFocus tool for calculating the intrinsic value of every company in the LCRT Nucleus database
* Offers specific and innovative valuation techniques of practicing professionals for individuals to use in picking stocks long-term
* Highlights the most state-of-the-art approaches to unconventional stock-picking for investors and corporate finance professionals
Offering encouragement to individual investors by outlining a model that delivers satisfying returns, How to Pick a Stock is especially useful for those who are patient and believe in longer-term investing horizons.
Autoren/Hrsg.
Fachgebiete
Weitere Infos & Material
Preface xvii
Acknowledgments xxi
SECTION ONE The LCRT Investment Process 1
CHAPTER 1 Introducing Our Investment Process 5
Key Takeaways 8
CHAPTER 2 A Better Way to Invest in Stocks 9
Put the Focus in the Right Place: On a Company's Fundamental Value 9
We Bring You an Improved Methodology 10
Basing Decisions on Under- and Overvaluation by the Market 12
The Key: Recognizing the Inflection Points 13
Looking at Our Model 14
Key Takeaways 16
CHAPTER 3 Advantages of Economic, Cash-Based Modeling 17
Key Takeaway 21
CHAPTER 4 Analyzing Mental Models 23
Key Takeaways 26
CHAPTER 5 The Value Creation Process 27
Cost of Capital and Company Return on Capital 27
The Importance of Adjusting for Inflation 28
Where We Are Going 29
Key Takeaways 31
CHAPTER 6 The Corporate Perspective 33
The Focus for Both Constituencies: Value Creation 33
Earnings Are the Wrong Measure 36
Executive Compensation 38
Creating an Information Advantage 41
Key Takeaways 44
SECTION TWO A Brief History of Investing and Modeling 45
CHAPTER 7 Relevant Market History of Investing 47
Start with Concepts of Risk and Uncertainty 48
Migrate toward Value and Market Inefficiency 49
Enter Modern Portfolio Theory 50
An Emphasis on Earnings, Plus 51
Leading to Multifactor Modeling 51
Finding the Right Factors 52
Dissecting a Multifactor Model 53
Key Takeaways 54
CHAPTER 8 Interpreting Market History 55
Market Is Dealing with Price Change, Not Price Level 56
Bringing History Up to Now 59
Back to Earnings: Why They Still Prevail 60
Key Takeaways 62
SECTION THREE Brief Discussions of Various Investing Methods 63
How Best to Combine Investing Methods with LCRT's Models 63
CHAPTER 9 Do Stocks Have Intrinsic Value? 65
Basing Investment Decision on Intrinsic Value 66
Value Assets on Economic Basis 68
Estimating Intrinsic Value through a DCF Model 69
Key Takeaways 70
CHAPTER 10 The Pros and Cons of Various Methods and Models 71
Why Price Level Matters 71
Why Use Analysts' Traditional Cash Flow Forecasts. Why Not. 72
Why Use Dividends to Value Stocks. Why Not. 72
Why Use the Simplest Model, EBITDA. Why Not. 73
Why Use Earnings. Why Not. 74
Why Use Price Level from Regression Analysis. Why Not. 75
Why Use Net Free Cash Flow. Why Not. 76
Why Use Residual Income or EVA.(r) Why Not. 77
Why Use Cash Flow ROI, CFROI,(r) Economic Cash Margin, or Cash Economic Return. Why Not. 78
CHAPTER 11 Suppose You Love Your Current DCF Model 81
Dividend Discount Models 82
EVA(r) or Residual Income Models 83
CFROI(r) or Cash Economic Return Models 84
Regression Models of Price Level 84
Multifactor Models 85
SECTION FOUR Explaining LCRT's Conceptual Framework in Detail 87
CHAPTER 12 Our Approach 91
Differences between Intrinsic Value and Market Value Approaches 93
Explaining Value 94
Attacking the Old Ways 97
Modeling on Economic Fundamentals, Not Accounting Mumbo-Jumbo 98
The Intricacies of the Price Formation Process 100
The Foundation Is Intrinsic Value 101
We're Fighting Standard Practices, but We Can Win 102
Key Takeaways 103
CHAPTER 13 Focusing on Price Formation 105
Be Proactive, Not Reactive 106
Building a Price Formation Process 107
Oh-Oh: We're Preaching Again 109
Key Takeaways 110
CHAPTER 14 Our Automated DCF Model--The Better Model 111
Four Primary Measurement Principles to Evaluate a Model 113
Key Takeaways 114
CHAPTER 15 Getting to Know Our LCRT Model 115
Adjustments to Improve DCF Modeling 116
Economic Output and Life of Each Asset 116
Capitalize Cash Flows 117
Understanding Abnormal Accruals 118
Cash Flows Fade: Down and Up 119
Looking at the Discount Rate 120
Summarizing the Model of Choice 121
The Next Generation Will Be Even Better 122
Key Takeaways 123
CHAPTER 16 Digging Deeper into the LCRT Model 125
Exponential Fad