Table of Contents
Preface vii
Acknowledgments xiii
Introduction xv
Part I Foundations
Chapter 1 The Quiet Outperformer 3
Chapter 2 Why Stocks? 7
Chapter 3 Price and Value Are Different 15
Chapter 4 Measuring Performance 19
Part II The Value Investing Model
Chapter 5 Understanding the Business 29
Chapter 6 Accounting Is a Language 39
Chapter 7 Capital Employed 51
Chapter 8 Operating Income 65
Chapter 9 Free Cash Flow 71
Chapter 10 Book Values and Shares 79
Chapter 11 Past Performance 85
Chapter 12 Future Performance 97
Chapter 13 Shareholder-Friendliness 115
Chapter 14 Inexpensiveness 129
Chapter 15 Price Drives Risk 147
Chapter 16 Misjudgment and Misaction 151
Part III Maintenance
Chapter 17 Portfolios and Selling 165
Chapter 18 Endurance 173
Chapter 19 Generating Ideas 175
Chapter 20 Differences Among Value Investors 183
Chapter 21 Preservation 187
Glossary 191
Bibliography 207
Notes 209
Index 215