Modern Security Analysis: Understanding Wall Street Fundamentals: 861 (Wiley Finance) - Hardcover

Whitman, Martin J.; Diz, Fernando

Hardcover

ISBN 10: 1118390040 ISBN 13: 9781118390047

Publisher: Wiley, 2013

Synopsis

A legendary value investor on security analysis for a modern era

This book outlines Whitman's approach to business and security analysis that departs from most conventional security analysts. This approach has more in common with corporate finance than it does with the conventional approach. The key factors in appraising a company and its securities: 1) Credit worthiness, 2) Flows--both cash and earnings, 3) Long-term outlook, 4) Salable assets which can be disposed of without compromising the going concern, dynamics, 5) Resource conversions such as changes in control, mergers and acquisitions, going private, and major changes in assets or in liabilities, and 6) Access to capital.

• Offers the security analysis value approach Martin Whitman has used successfully since 1986
• Details Whitman's unconventional approach to security analysis and offers information on the six key factors for appraising a company
• Contains the three most overemphasized factors used in conventional securities investing

Written by Martin J. Whitman and Fernando Diz, Modern Security Analysis meets the challenge of today's marketplace by taking into account changes to regulation, market structures, instruments, and the speed and volume of trading.

About this title

Review

"Modern Security Analysis is full of useful discussions of such standard topics as creditworthiness, market efficiency, diversification, and financial accounting. But it also includes descriptions of more controversial ideas about the overriding importance of tangible net asset value, the shortcomings of the Graham-Dodd approach to value investing, and the irrelevance of both modern capital theory and broker/dealer research."
--CFA Institute Book Review

From the Back Cover

High praise for value investing legend MARTIN WHITMAN

"For Third Avenue, a principal goal is to buy growth; but don't pay for it. This philosophy has served the firm and its investors well for decades. Marty Whitman and Professor Fernando Diz have been teaching this philosophy to Syracuse University Whitman School of Management students for years. This book is the culmination of that disciplined process. The experiential learning vehicle at Syracuse, the Orange Value Fund, is a practical approach to executing the book's investment approach, which has consistently proven its value. As a Syracuse University trustee and Whitman School alum, I am proud to be associated with this program and the book's authors. I would highly recommend the book to anyone interested in investing."
--Darlene T. DeRemer, Managing Partner, Grail Partners LLC

"Modern Security Analysis is another hallmark of Marty Whitman, and a must-read for any investor who wants to invest 'safe and cheap.' Mr. Whitman and Professor Diz evolve conventional wisdom and take value investing to the next level. For achieving investment success, this book will be a must-read for many years to come."
--Bruce Flatt, CEO, Brookfield Asset Management

"Martin Whitman is not only a successful professional investor, he's also a first-class theoretician. Value investing is a big tent: at one end, Ben Graham, the founder of the value school, at the other end, Warren Buffett with major adjustments to the teachings of Graham. And in between, Martin Whitman, who refines his own approach in his new book. Anybody with an interest in investing should read this book: value investing makes sense and it works over time. So why bother with anything else?"
--Jean-Marie Eveillard, Senior Advisor, First Eagle Investment Management

"A carefully reasoned, clear explanation of how to invest with the best potential for profit measured against tolerable risk by focusing on the issuers of securities and the terms of the securities they issue--the authors combine real-world experience at the highest levels with academic excellence--and they bring home their erudition with numerous examples."
--Arnie Jacobs, Lawyer

"Modern Security Analysis provides extraordinary insight into investing in commercial enterprises and the securities they issue. Marty Whitman and Fernando Diz reward the reader with a thorough and comprehensive analysis of a wide range of relevant topics--while expertly combining theory with practical real-world experience. This will prove invaluable reading for novice and seasoned investors alike."
--Andrew P. DeNatale, Partner, Stroock & Stroock & Lavan LLP

"What a treat to see such skill and common sense in evaluating securities analysis! Since the invention of the computer, its great number-crunching power has been directed at designing and marketing all manner of misleading mathematical formulae which pretend to be authoritative. And, so, have been spawned such foolish ideas as capitalized leases, options valuations, cost of capital, and discounted cash flow enterprise valuations. If Whitman and Diz's work is read by all, it will elevate the general quality of securities analysis."
--Michael E. Tennenbaum, Senior Managing Partner, Tennenbaum Capital Partners, LLC, and longtime value investor

Edition details

• Publisher: Wiley
• Publication date: 2013
• ISBN 10: 1118390040
• ISBN 13: 9781118390047
• Binding: Hardcover
• Language: English
• Edition number: 1
• Number of pages: 496