The First Edition of Value Investing: From Graham to Buffett and Beyond was published in 2001. It is still in print, having sold over 100,000 copies. It has been translated into five languages. Business school professors still assign it in their courses. But in the 20 years since the First Edition, the economy has changed, the investment world has evolved, and the discipline of value investing has adapted to this new environment. This Second Edition responds to these developments. It extends and refines an approach to investing that began with Benjamin Graham and David Dodd during the Great Depression and was adapted by Warren Buffett, Charlie Munger, and others to earn returns in an environment in which the opportunity to buy a stock worth a dollar for 50 cents is no longer waiting in plain sight.
The foundation of this book is the course on value investing that Bruce Greenwald taught at Columbia Business School for almost a quarter century. His aim in the course, and our aim in the book, is to help the investor operating in the Graham and Dodd tradition find him or herself on the right side of the trade. The steps include searching for the right securities, valuing them appropriately, honing a research strategy to devote time to the right activities, and wrapping it all within a risk management practice that protects the investor from permanent loss of capital.
Successful value investing practitioners have graced both the course and this book with presentations describing what they really do when they are at work. There are brief descriptions of their practices within, and video presentations available on the web site that accompanies this volume:
http://www.wiley.com/go/greenwald/valueinvesting2e
PRAISE FOR VALUE INVESTING
"This book deserves a place on every serious investor's shelf."
―Financial Times
"The First Edition of Value Investing was instantly recognized as a classic. The value investing style was out of favor in 1999 when that First Edition came out, as it is now. The reversal that followed was swift and brutal for those who had abandoned the time proven strategies of value investing. This edition, revised and updated, with much new content, is even better. Buy it. Study it. Profit from it."
―Bill Miller, Founder, Chairman, and Chief Investment Officer, Miller Value Partners
"Since the Global Financial Crisis, and especially thus far in 2020, 'growth investing' has significantly outperformed 'value.' Some say value investing is dead, while others say the success of growth investing has been driven by recent good company performance and a virtuous circle stemming from the rise in passive investing. It's important to adapt to changes in the world but just as important not to lose track of the time-tested principles regarding what makes for good underlying value in an investment. This book is an invaluable guide to an approach that investors must comprehend regardless of which side of the fence they stand on."
―Howard Marks, Co-chairman and Co-founder, Oaktree Capital Management; author, Mastering the Market Cycle: Getting the Odds on Your Side
"Value Investing is a must-read book for serious investors and students of investing. Academic value guru Bruce Greenwald along with Judd Kahn update their earlier work to explore how value investing steps have changed―or not―in the time of financial crises, pandemics, and euphoria about technology stocks. While there may be few dollar bills discoverable for 50 cents today, Greenwald and Kahn―with a cast of leading investors in the book―offer a rigorous guide for today's markets."
―Glenn Hubbard, Dean Emeritus and Russell L. Carson Professor of Finance and Economics, Columbia Business School
"This definitive book on value investing is now fully revised and updated, with growth as a debate-inspiring X factor. When should you pay for it, when not? It's an inescapable question that the smartest investors deeply rooted in the Graham and Dodd tradition now ask themselves all the time. By addressing growth as a key variable for great investing, the Second Edition packs even more wisdom and insights for intelligent investors looking to outperform in a rapidly changing world."
―John Mihaljevic, CFA, Chairman, MOI Global; author, The Manual of Ideas: The Proven Framework for Finding the Best Value Investments
"Greenwald and Kahn shine in this updated and expanded edition of Value Investing. I keep a copy on my desk and you should too. Read it."
―Wesley R. Gray, PhD, CEO, Alpha Architect; co-author, Quantitative Value and Quantitative Momentum
About the Author
BRUCE C. GREENWALD was Founding Director of the Heilbrunn Center for Graham and Dodd Investing at Columbia Business School from 2001 until his retirement in 2019. In addition to training thousands of students in the mysteries of value investing, he taught oversubscribed courses on the economics of business strategy and globalization. His book Competition Demystified, published in 2005, is still in print. He has also been Chairman of Paradigm Capital Management since its founding in 2007 and the Director of Research at First Eagle Funds from 2007-11, serving as a senior advisor since.
JUDD KAHN is currently a partner in Davidson Kahn Capital Management. He started his professional career as a historian, worked as a consultant and financial executive, and has been involved in investment management since 2000. He has a doctorate in history from UC Berkeley.
ERIN BELLISSIMO is the Managing Director of Notre Dame's Institute for Global Investing. She was a founding director of Columbia's Heilbrunn Center, has worked in hedge funds and banking, and sits on the board of Girls Who Invest. She has a BSBA from Bucknell and an MBA from the Wharton School at the University of Pennsylvania.
MARK COOPER is CIO and Co-founder of MAC Alpha Capital Management and an adjunct professor at Columbia Business School. He previously worked at First Eagle Investment Management, PIMCO, Omega Advisors, Pequot Capital, and JPMorgan. He holds an MBA from Columbia Business School and a SB from MIT.
TANO SANTOS is the David L. and Elsie M. Dodd Professor of Finance and the Faculty Director of Columbia's Heilbrunn Center. He has succeeded Bruce Greenwald as the professor teaching the value investing course. He has a doctorate in economics from the University of Chicago.
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