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The Art of Value Investing

by John Heins and Whitney Tilson

Though successful value investors may share core principles, how they execute their strategies can differ on any number of fronts.

Our hope is that mining the diversity of opinion can help novice and expert investors alike refine their own investing strategies and processes. It should also help those looking for others to manage their money determine which are the right questions to ask, as well as what answers are worthy of their respect and attention.

In this article, we are excerpting sections of our book, “The Art of Value Investing” (John Wiley & Sons, 2013), which assembles primarily from first-person interviews the opinions of the best investors in the business on a wide range of investing topics. Here, they explain their thinking on investing in turnarounds, how they approach selling and how they’ve learned the hard way that ego can be an enemy of returns.

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John Heins is co-founder, with Whitney Tilson, of the investment newsletter Value Investor Insight and co-author, also with Whitney Tilson, of the recently published "The Art of Value Investing” (John Wiley & Sons, 2013) .
Whitney Tilson is the co-founder with John Heins of the investment newsletter Value Investor Insight and co-author also with John Heins of the recently published "The Art of Value Investing” (John Wiley & Sons, 2013) .


Discussion

John D from New Jersey posted 9 months ago:

Couple comments:
*Intrinsic value is a moving target and even a schizophrenic herd gets it right more often than many people think.
*Highly regarded Mean-reversion value investors have lost their heads when the black swans have raised theirs. Another strategy is to buy safety and black swans simultaneously when they are cheap and sell after mean-reversion collapses. This requires patience but is another long-term perspective with a value orientation.
*Some quants are now trying to create cyber value investors. As an example, some academics have come up with a Buffett simulator that makes a levered bet in favor of low beta and high quality. Seems like a battle between art and science is taking shape and makes me wonder if and when big blue overtakes the Kasparovs of the investing world.


Toan Nguyen from California posted 9 months ago:

Really enjoy reading comments from a large number of experts


Earl Lash from Colorado posted 9 months ago:

I like ETF'S..........how to Value Invest in ETF'S for the value way.

Earl Lash
e_lash@msn.com


Earl Lash from Colorado posted 9 months ago:

I like ETF'S..........how to Value Invest in ETF'S for the value way.

Earl Lash
e_lash@msn.com


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