Description
Book SynopsisIn
Creating Strategic Value, Joseph Calandro Jr. explores how the core ideas and methods of value investing can be profitably applied to corporate strategy and management. He builds from an analysis of traditional value investing concepts to their strategic applications.
Trade ReviewUnderstanding values is the key to corporate success, and Graham and Dodd is the Rosetta Stone of unlocking values. In this book, Joseph Calandro Jr. continues his application of core value investing principles into both strategy and management. A must-read for corporate managers and investors alike. -- Mario J. Gabelli, founder, chairman, and CEO of GAMCO Investors, Inc.
I loved this book. Calandro has written a highly engaging work on an incredibly important, often overlooked topic: how corporate managers should allocate capital according to the principles of value investment. He draws on theory and practice to deliver a resoundingly persuasive argument. The book is fantastically well written and a pleasure to read. Every director, officer, and general manager should read it. -- Tobias Carlisle, principal, Acquirers Funds, LLC; author of
The Acquirer's Multiple and
Deep Value; and founder, acquirersmultiple.com
A riveting blend of skill sets on strategy and management in the corporate world. Information sharing and analysis at the speed of the internet, animated by the experience of an author whose findings and recommendations are both thoughtfully and practically displayed. -- Lenny DePaul, chief inspector/commander, U. S. Marshals Service (Ret.)
Joseph Calandro’s book about value investing and corporate management is timely: for more than ten years ‘value’ stocks have underperformed ‘growth’ stocks. If we assume that we will find value stocks among depressed and neglected sectors of the market, it follows that there is now ‘double value’ in the stock market; double value arises from unpopular shares and from a completely neglected investment strategy that value investing has become. I highly recommend Calandro’s book as we shall move away from passive investment styles to more active management. -- Marc Faber, editor,
The Gloom, Boom, & Doom Report, and author of
Tomorrow’s Gold: Asia’s Age of DiscoveryValue investing is more than a capital allocation strategy. It is a philosophy of business based on the idea that the best way to navigate a volatile marketplace is not with gut, instinct, and savvy, but with facts, verifiable data, and a margin of safety. Joseph Calandro’s
Creating Strategic Value expertly shows how the principles of value investing can be applied to business strategy and management. -- Jeff Gramm, fund manager and author of
Dear Chairman: Boardroom Battles and the Rise of Shareholder ActivismCalandro wastes no words in building the case for applying the precepts of value investing to general corporate management. He illustrates those precepts with portraits of the careers of a host of accomplished practitioners, from old Jay Gould to the immortals Benjamin Graham and Henry Singleton to the contemporary standouts Howard Marks and Seth Klarman. Find your “information advantage” is the theme of this fine and useful volume—and you can begin your quest in these very pages. -- James Grant, editor,
Grant’s Interest Rate Observer, and author of
The Forgotten Depression: 1921, The Crash That Cured ItselfThe lessons of classic, mixed, and contemporary value investing, through interviews with accomplished value practitioners, inspiring anecdotes, and thought-provoking case studies, leave the reader well equipped to see value creating opportunity and avoid value destroying activity. An invaluable resource for both corporate capital allocators and those who evaluate their effectiveness. Every corporate decision maker will emerge a more “intelligent investor” as a result of reading this essential book. -- John J. Hughes, president of Quantum Capital Management, LLC
This book fills a much needed gap for those in corporate strategy and management. Utilizing sound research and leveraging examples by thought leaders in the field, Calandro illustrates how to apply the principles of value investing theory for corporate success. Reading it will definitely give you a leg up on the competition! -- Mark McNeilly, author of
Sun Tzu and the Art of BusinessThrough historical example and financial analyses, Joseph Calandro does an excellent job showing executives how to manage corporate value over the long haul. First: how to identify and then control the companies' greatest risks. Second: How and when to pounce on cheap assets offered up by companies not so enlightened.
Creating Strategic Value is exactly the guide to read after a decades-long bull market has created amnesia towards financial cyclicality. -- Frederick J. Sheehan, Jr., author of
Panderer to Power: The Untold Story of how Alan Greenspan Enriched Wall Street and Left a Legacy of Recession and The Coming Collapse of the Municipal Bond MarketThanks to its readable text and non-technical approach, this book will be a valuable resource for business students, their instructors, and management practitioners. * Choice *
Table of ContentsForeword—Professor Sris Chatterjee, Gabelli Chair in Global Security Analysis at Fordham University
Introduction
Appendix: Common Ground and/or Areas of Further Research
Part I Preface: Theory
1. Value Investing and Corporate Management: Overview
2. Corporate Strategy and the “Margin of Safety”
3. Cash and Competitive Advantage
4. Corporate Management and “Security Analysis” (including an interview with Seth A. Klarman)
5. Value Creating Corporate Management: Henry E. Singleton
Appendix 5.1: Evaluating a Stock Buyback
Appendix 5.2: Managing Funding Obligations
6. Managerial “Rationality”
7. Corporate Management and “Modern Security Analysis” (including an interview with the late Martin J. Whitman)
8. Value Realization Is “The Most Important Thing”
Part IIPreface: Practice
9. Value Realization at GEICO
Appendix 9.1: Note on Estimating Growth Value
10. Value Realization at GTI Corporation
11. Value Realization at the Union Pacific
Conclusion and Information Advantage
Acknowledgments
Notes
Index
