Common Stocks and Common Sense: The Strategies, Analyses, Decisions, and Emotions of a Particularly Successful Value Investor - Hardcover

Wachenheim III, Edgar

Hardcover

ISBN 10: 1119913241 ISBN 13: 9781119913245

Publisher: Wiley, 2022

Synopsis

An incisive and comprehensive exploration of value investing in the real world

In the newly revised second edition of Common Stocks and Common Sense: The Strategies, Analyses, Decisions, and Emotions of a Particularly Successful Value Investor, celebrated Wall Street value investor Ed Wachenheim walks readers through eleven revealing case studies of real-world investments made by the author's firm, Greenhaven Associates. Each case uncovers unique insights into the technical and human elements that go into any profitable investment transaction.

This latest edition includes brand-new content with coverage of the electric vehicle (EV) market, and in-depth discussions of General Motors. Refreshed and renewed content also appears throughout the book, with several new investment theses appearing for the first time in this edition. Readers will also find:

• An emphasis on the softer, human side of value investing, including the biases and emotions that can get in the way of successful investments
• New material covering emerging and high-growth industries
• Value investing advice that goes beyond balance sheets and technical ratios

An essential handbook for retail value investors everywhere, Common Stocks and Common Sense will also earn a place on the bookshelves of portfolio and fund managers, securities analysts, and anyone else with a personal or professional interest in the financial markets.

About this title

About the Author

EDGAR WACHENHEIM III is Founder, Chairman, and CEO of Greenhaven Associates and one of Wall Street’s preeminent investors. Greenhaven manages approximately $8.5 billion in funds for wealthy families, college endowments, and charitable foundations. Wachenheim is a graduate of Williams College and Harvard Business School and is a former securities analyst at Goldman Sachs.

From the Back Cover

PRAISE FOR Common Stocks & Common Sense

“Ed Wachenheim has been an extraordinarily successful value investor for decades, and in this well written and engrossing book, he explains his investment approach through case studies, including investments that went well but also some that went badly. The key takeaways are that success requires intense commitment to research, a probabilistic mindset, and the temperament to remain rational in the face of market irrationality.”
―ROBERT E. RUBIN, Former U.S. Secretary of the Treasury

“Ed Wachenheim often emphasizes the great value of using one’s ‘common sense’ as an investor. But after he describes how he has analyzed every imaginable dimension and variable of several organizations before deciding whether to buy their stock, we quickly realize that there is nothing even remotely ‘common’ about his ability to be both prescient and wise. This is a fascinating and enlightening book that is completely accessible to the layman, and should be required reading for professionals.”
―NEIL L. RUDENSTINE, Former President of Harvard University

“Ed Wachenheim is a very successful investor who has never sought the limelight. He has written a book on investing which is a kind of confessional, talking openly about his stock picking experiences with humor and candor. Reading about his odyssey over the past several decades will prove to be a useful apprenticeship for both the novice and the experienced investor. I learned a lot and I’ve been doing it longer than he has.”
―BYRON R. WIEN, Vice Chairman, Blackstone Group LP

From the Inside Flap

While more academic works on common stock investing would have you believe that the discipline is largely mathematical and analytical, any accurate and realistic study of the subject must include a detailed examination of the “softer” side of stock selection and investment, including the feelings, emotions, and biases that can turn an otherwise successful transaction into an unsuccessful one.

In the newly revised second edition of the popular book, Common Stocks and Common Sense: The Strategies, Analyses, Decisions, and Emotions of a Particularly Successful Value Investor, renowned Wall Street investor Ed Wachenheim delivers a startlingly insightful and practical take on the investment strategies and experiences that have allowed the author to enjoy an annual return of close to 18% between 1990 and 2021.

In the book, readers will find eleven in-depth case studies, each detailing a particular investment made by Wachenheim and explaining the investing process from start to finish. Each case includes a particular emphasis on the human side of investing: the emotions, intensities, and pressures that often dictate how well an individual investor can ride out the ups and downs of the market.

The latest edition offers brand-new content on the electric vehicle (EV) market and an in-depth discussion on General Motors. Revamped and refreshed content appears throughout, and new and updated case studies showcasing real world investments made by the author are also included.

An essential handbook for retail investors, fund and portfolio managers, and securities analysts, Common Stocks and Common Sense will earn a place in the libraries of anyone with a professional or personal interest in value investing.

Edition details

• Publisher: Wiley
• Publication date: 2022
• Language: English
• ISBN 10: 1119913241
• ISBN 13: 9781119913245
• Binding: Hardcover
• Edition number: 2
• Number of pages: 256