Dear Investiv Daily Subscriber & Fellow Investor,
After a year of hard work, I have finally finished my book about value investing and the process of analyzing a company. The title is Modern Value Investing, and the book is available both in a paperback version and as an e-book on Amazon.
The book is dividend in three parts:
- The mindset,
- The skillset, and
- Food for thought.
The first section, titled ‘Mindset of a value investor,’ discusses the main psychological characteristics one must have to be a successful value investor. Risk is defined and explained in a way to help you understand the risks when making investment decisions.
I then add to the common value investing concepts by discussing behavioral finance, the theory of reflexivity, and also discuss things to be careful of when investing like buyback shenanigans or Wall Street’s interests.
The core of the book are the 25 tools to use when analyzing a company that will allow you to better analyze investment opportunities, identify a margin of safety, and have a great comparative view over your portfolio. The tools range from calculating intrinsic value, to determining a margin of safety, to assessing qualitative factors and general market risks for the company you are looking at.
Part two follows with an application of the 25 tools on Daimler, a nice cyclical stock to demonstrate how the tools work.
Part three of the book is food for thought as it goes beyond value investing and into more diversification, hedging, portfolio strategies, selling stocks, all-weather portfolios, rebalancing, long tail, and even gold.
I hope you enjoy the book. If you like it, don’t forget to leave a nice review on Amazon as that would mean a lot for me.