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Invest Like a Guru

Book Description

Adopt the investment strategy that built Warren Buffett's fortune

Invest Like a Guru provides an invaluable resource for high-quality-focused value investing, with expert insight and practical tools for implementation. Written by the man behind GuruFocus.com, this book expands on the site's value strategies and research tools to provide a primer for those exploring pathways to higher returns at lower risk. The book begins with an insightful explanation of high-quality-focused value investing concepts, then quickly moves into practical, detailed guidance on analysis, valuation, key factors, and risks to avoid. Case studies demonstrate real-world application of various analysis methods, and the discussion walks you through important calculations using real examples. Author Charlie Tian draws upon his own experiences and lessons learned to provide true insight on high-quality-focused value investing as a strategy, providing both reference and expert advice in this singularly useful guide.

Warren Buffett once said, "I would rather buy good companies at fair prices than buy fair companies at good prices." That's how he built his fortune, and his method is what we now call high-quality-focused value investing. This book shows you how to determine what constitutes "good companies" and "fair prices," with practical tools for real-world application.

  • Learn the principles and concepts of high-quality-focused value investing
  • Understand the analysis process and valuation of prospective investments
  • Avoid the value traps that can trigger permanent losses
  • Study clear examples of key ratios and calculations

 We can't all become the next Warren Buffett, but we can boost returns while reducing risk using the right investment strategy. High-quality-focused value investing provides a path to profit, and Invest Like a Guru is the one-of-a-kind guidebook for getting on track.

Table of Contents

  1. Cover
  2. Title Page
  3. Copyright
  4. Dedication
  5. Acknowledgments
  6. Introduction
    1. The Bloodbath
    2. The Bubbles
    3. Notes
  7. Chapter 1: The Gurus
    1. Peter Lynch
    2. Warren Buffett
    3. Donald Yacktman
    4. Notes
  8. Chapter 2: Deep-Value Investing and Its Inherent Problems
    1. Deep-Value Investing
    2. The Problem with Deep-Value Investing
    3. Notes
  9. Chapter 3: Buy Only Good Companies!
    1. What Are Good Companies?
    2. Notes
  10. Chapter 4: Again, Buy Only Good Companies—and Know Where to Find Them
    1. Asset Plays
    2. Turnarounds
    3. Cyclicals
    4. Slow Growers
    5. The Stalwarts
    6. Fast Growers
    7. The Cyclicity of Businesses
    8. Shooting for the Stars versus Shooting Fish in a Barrel
    9. Notes
  11. Chapter 5: Buy Good Companies at Fair Prices
    1. Discounted Cash Flow Model
    2. Reverse DCF
    3. Fair P/E Ratio
    4. Growth of Value
    5. How Can a Good Company Be Sold at a Low Price?
    6. Wouldn't It Be Even Better to Buy Good Companies at Lower Prices?
    7. Summary
    8. Notes
  12. Chapter 6: Buy Good Companies: The Checklist
    1. Checklist for Buying Good Companies at Reasonable Prices
    2. The Warning Signs
    3. Positive Signs
    4. Notes
  13. Chapter 7: Failures, Errors, and Value Traps
    1. The Wrong Companies
    2. Value Traps
    3. Options, Margins, and Shorts
    4. Notes
  14. Chapter 8: Passive Portfolios, Cash Level, and Performance
    1. A Basket of Good Companies
    2. Dividend-Income Investing
    3. How to Look at the Performances
    4. Notes
  15. Chapter 9: How to Evaluate Companies
    1. Valuation Ratio Approach
    2. Intrinsic Value Calculations
    3. Rate of Return
    4. Notes
  16. Chapter 10: Market Cycles and Valuations
    1. Over the Long Term, the Market Will Always Go Up
    2. It Will Be Cyclical
    3. Market Valuations
    4. Projected Future Market Returns
    5. Notes
  17. Epilogue
  18. About the Author
  19. Index
  20. End User License Agreement