Aswath Damodaran: Investment Philosophies, Gebunden

Beschreibung

Choosing the right investment philosophy is the heart of successful investing. To make the choice, though, you need to look within before you look outside. In the Second Edition of Investment Philosophies, New York University Stern Business School Professor Aswath Damodaran will help you do this by going beyond the simple explanations of traditional and alternative investment strategies to discuss the individual underlying philosophies that support these techniques.
This reliable resource skillfully explores many of the time-tested investment philosophies that have allowed investors to reap financial rewards over the years, including value investing, growth investing, technical analysis, market timing, arbitrage, indexing, and more.
Along the way, it exposes you to a wide array of investment philosophies so as to give you a sense of what drives investors in each one, how they attempt to put these philosophies into practice, and what determines ultimate success. Author Aswath Damodaran also supplies you with the tools-the definition and measurement of risk, the notion of market efficiency and how to test for inefficiencies, and the components and determinants of trading costs-and empirical evidence for you to make your own judgments on the investment philosophy that fits your specific investment goals and views of how markets work.
Filled with valuable insights and useful formulas, this book provides you with the information you need to pick an investment philosophy that is right for you. With the Second Edition of Investment Philosophies as your guide, you can enter the markets with confidence and exit with profits. Praise from the first edition of Investment Philosophies
"Damodaran is a well-informed scholar with a gift for organized, clearly written syntheses of complex topics in modern finance. With Investment Philosophies he provides the uncensored facts about winning in the marketplace. If you are a fund manager, an investor, or simply a student of finance, you will want to read this book."
-Tom Copeland, Managing Director of Corporate Finance, Monitor
"Professor Damodaran has zeroed in on the most important missing element of many investment management processes: a clearly defined investment philosophy which can serve as a beacon in difficult markets. He offers a cornucopia of philosophies and strategies that have worked for many of the most successful investors, and which have stood the test of time."
-Rob Arnott, Chairman, First Quadrant, LP; Editor, Financial Analysts Journal
"As an investor, I always have to look back to my philosophy and strategy for taking risk and making money. This book is an invaluable aid for 'taking stock' before buying stock. It lays out the concepts and tools for understanding the basics of risk and return in the stock market, and presents a framework for any investor to construct his or her own investment philosophy."
-Mitch Julis, Managing Partner, Canyon Capital Advisors

Inhaltsangabe

CHAPTER 1 Introduction 1
What Is an Investment Philosophy? 2
Why Do You Need an Investment Philosophy? 3
The Big Picture of Investing 4
Categorizing Investment Philosophies 7
Developing an Investment Philosophy 10
Conclusion 12
Exercises 13
CHAPTER 2 Upside, Downside: Understanding Risk 15
What Is Risk? 16
Equity Risk: Theory-Based Models 16
Assessing Conventional Risk and Return Models 32
Equity Risk: Alternative Measures 34
Equity Risk: Assessing the Field 45
Default Risk 46
Conclusion 50
Exercises 51
CHAPTER 3 Numbers Don't Lie--Or Do They? 53
The Basic Accounting Statements 53
Asset Measurement and Valuation 55
Measuring Financing Mix 62
Measuring Earnings and Profitability 69
Measuring Risk 75
Differences in Accounting Standards and Practices 82
Conclusion 82
Exercises 85
CHAPTER 4 Show Me the Money: The Basics of Valuation 87
Intrinsic Value 87
Relative Valuation 110
Valuing an Asset with Contingent Cash Flows (Options) 119
Conclusion 121
Exercises 122
CHAPTER 5 Many a Slip: Trading, Execution, and Taxes 125
The Trading Cost Drag 125
The Components of Trading Costs: Traded Financial Assets 127
Trading Costs with Nontraded Assets 146
Management of Trading Costs 148
Taxes 150
Conclusion 159
Exercises 160
CHAPTER 6 Too Good to Be True? Testing Investment Strategies 163
Why Does Market Efficiency Matter? 163
Efficient Markets: Definition and Implications 164
Behavioral Finance: The Challenge to Efficient Markets 170
A Skeptic's Guide to Investment Strategies 204
Conclusion 206
Exercises 207
CHAPTER 7 Smoke and Mirrors? Price Patterns, Volume Charts, and Technical Analysis 209
Random Walks and Price Patterns 209
Empirical Evidence 211
The Foundations of Technical Analysis 239
Technical Indicators and Charting Patterns 240
Conclusion 255
Exercises 256
CHAPTER 8 Graham's Disciples: Value Investing 259
Who Is a Value Investor? 259
The Passive Screener 260
The Contrarian Value Investor 284
Activist Value Investing 293
Conclusion 326
Exercises 326
CHAPTER 9 The Allure of Growth: Small Cap and Growth Investing 329
Who Is a Growth Investor? 329
Passive Growth Investing 330
Activist Growth Investing 365
Conclusion 372
Exercises 373
CHAPTER 10 Information Pays: Trading on News 375
Information and Prices 376
Trading on Private Information 378
Trading on Public Information 398
Implementing an Information-Based Investment Strategy 421
Conclusion 422
Exercises 423
CHAPTER 11 A Sure Profit: The Essence of Arbitrage 425
Pure Arbitrage 425
Near Arbitrage 450
Speculative Arbitrage 460
Long / Short Strategies--Hedge Funds 465
Conclusion 469
Exercises 470
CHAPTER 12 The Impossible Dream? Timing the Market 473
Market Timing: Payoffs and Costs 473
Market Timing Approaches 477
The Evidence on Market Timing 506
Market Timing Strategies 514
Market Timing Instruments 518
Connecting Market Timing to Security Selection 521
Conclusion 521
Exercises 522
CHAPTER 13 Ready to Give Up? The Allure of Indexing 525
The Mechanics of Indexing 525
A History of Indexing 527
The Case for Indexing 530
Why Do Active Investors Not Perform Better? 554
Alternative Paths to Indexing 562
Conclusion 571
Exercises 572
CHAPTER 14 A Road Map to Choosing an Investment Philosophy 575
A Self-Assessment 575
Finding an Investment Philosophy 579
The Right Investment Philosophy 581
Conclusion 583
Exercises 584
Index 585

Klappentext

Praise from the first edition of Investment Philosophies

"Damodaran is a well-informed scholar with a gift for organized, clearly written syntheses of complex topics in modern finance. With Investment Philosophies he provides the uncensored facts about winning in the marketplace. If you are a fund manager, an investor, or simply a student of finance, you will want to read this book."
?Tom Copeland, Managing Director of Corporate Finance, Monitor

"Professor Damodaran has zeroed in on the most important missing element of many investment management processes: a clearly defined investment philosophy which can serve as a beacon in difficult markets. He offers a cornucopia of philosophies and strategies that have worked for many of the most successful investors, and which have stood the test of time."
?Rob Arnott, Chairman , First Quadrant, LP; Editor, Financial Analysts Journal

"As an investor, I always have to look back to my philosophy and strategy for taking risk and making money. This book is an invaluable aid for 'taking stock' before buying stock. It lays out the concepts and tools for understanding the basics of risk and return in the stock market, and presents a framework for any investor to construct his or her own investment philosophy."
?Mitch Julis, Managing Partner, Canyon Capital Advisors