Value Investing Approaches: Selected Value-oriented Idea Generation Approaches (That We Like) “Magic Formula” Advocated by Joel Greenblatt High ROCE, high EBIT/EV Earnings-based Sum-of-the-parts A staple approach of activists Investment case often rests on monetizing non-core and/or excess assets Earnings-and/or asset-based “Net-Nets” (and similar deep value strategies) Advocated by Ben Graham (Current assets minus total liabilities) … Continue reading The “Big Tent” of Value Investing : Approaches, Lessons, Ideas
Tag: Value Traps
Avoiding Value Traps
What Are Value Traps Value traps arise when the attractive price valuation turns out to be an illusion. The stock has recently underperformed and now looks inexpensive in terms of valuation metrics, making it a target on the value investor screening process. The final result is that investors caught with these stocks end up overpaying … Continue reading Avoiding Value Traps
Value Book 