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Value Investing in Growth Companies: How To Spot High Growth Businesses and Generate 40% to 400% Investment Returns

Book Description

How to apply the value investing model to today's high-growth Asian companies

This revised edition of Value Investing in Growth Companies serves as a step-by-step guide that lets investors combine the value investing and growth investing models to find excellent investment opportunities in emerging Asian companies. Though these two investing styles are very different, the authors' proprietary "jigsaw puzzle" model integrates them into a holistic investing approach that will help readers enjoy the kind of extraordinary results that investors like Warren Buffett or Peter Lynch built their fortunes on. This model focuses on four vital criteria that, when combined, pinpoint excellent companies in which to invest. Those criteria are: simple business models, quality management, healthy financial numbers, and accurate valuation. This book shows investors how to find growth companies in Asia that combine these four criteria for nearly surefire profits.

  • Offers a sensible and stress-free investing strategy that is ideal for anyone looking for investment opportunities in fast-growing Asian countries

  • This revised edition includes new case studies focused specifically on Asian companies and their unique characteristics

  • Perfect for investors who want to focus on high-growth, small-cap companies that offer excellent potential returns

Table of Contents

  1. Cover
  2. Contents
  3. Title
  4. Copyright
  5. Foreword
  6. Preface
  7. Acknowledgments
  8. Chapter 1: The Making of a Value-Growth Investor
    1. The Common Journey of New Investors
    2. Short-Term Trading to Long-Term Investing
    3. Growth Investors
    4. Value Investors
    5. Value Investors versus Growth Investors
    6. Value-Growth Investors
    7. Warren Buffett’s Journey
    8. Value-Growth Investors
    9. Definition of Growth Companies
    10. Common Misconceptions about Growth Companies
    11. Why Value-Growth Investing?
    12. Summary
  9. Chapter 2: The Secrets of Successful Value-Growth Investors
    1. Healthy Thoughts Lead to Sustainable Results
    2. Summary
  10. Chapter 3: The Jigsaw Puzzle—Four Pieces to Value-Growth Investing
    1. The Jigsaw Puzzle Model
    2. The Art and Science of Investing
    3. Looking for the Right Information
    4. Information Released by the Company
    5. Information from Outsiders
    6. Summary
  11. Chapter 4: Business—The First Piece of the Puzzle
    1. Understand a Company’s Business Model
    2. Simple Business
    3. Circle of Competence
    4. Going Beyond the Limit
    5. Competitive Advantage
    6. Knowing the Competitors
    7. Think Like a Customer through the Scuttle-Butting Process
    8. Finding Future Growth Drivers
    9. Understanding Risks—What Can Go Wrong?
    10. Summary
  12. Chapter 5: Management—The Second Piece of the Puzzle
    1. Management Forms the Cornerstone of a Business
    2. Criterion 1: Trustworthiness
    3. Criterion 2: Candid in Reporting
    4. Criterion 3: Aligned with Shareholders’ Interests
    5. Criterion 4: Track Record/Experience
    6. Criterion 5: Visionary Managers
    7. Summary
  13. Chapter 6: Numbers—The Third Piece of the Puzzle
    1. Numbers Do Not Lie
    2. Numbers to Look at When Reading the Income Statement
    3. Numbers to Look at When Reading the Balance Sheet
    4. Numbers to Look at When Reading the Cash-Flow Statement
    5. Summary
  14. Chapter 7: Valuation—The Fourth Piece of the Puzzle
    1. The Valuation of a Stock
    2. Price-to-Earnings Ratio
    3. Price-to-Earnings-to-Growth Ratio
    4. Discounted Earnings Model
    5. Margin of Safety
    6. Summary
  15. Chapter 8: Screening—Buy—Monitor—Sell
    1. Screening (Using Numbers against Competitors)
    2. Buy, Monitor, and Sell
    3. Buy, Buy, and Buy
    4. Monitor, Monitor, and Monitor
    5. Sell, Sell, and Sell
    6. Summary
  16. Chapter 9: Portfolio Management for Growth Companies
    1. Understanding Your Portfolio
    2. Types of Diversification
    3. The Sky Is the Limit
    4. Summary
  17. Chapter 10: Avoid Common Mistakes
    1. The Dos and Don’ts of Investing
    2. Summary
  18. Chapter 11: Case Studies and Conclusion
  19. Bibliography
  20. About the Authors
  21. Index