Description
Book SynopsisValuation is the key to smart investing this book shows you how The Little Book of Investing Like the Pros gives individual investors a crash course in the tools and techniques used on Wall Street.
Table of ContentsAbout the Authors ix
Foreword by Howard Marks xv
Acknowledgments xix
Disclaimer xxv
Introduction 1
Chapter One Step I: Idea Generation 19
Screens 22
Bottom-Up Approach 24
Top-Down Approach 59
Chapter Two Step II: Identifying the Best Ideas 71
Idea Review Framework 73
Investment Thesis 77
Business Overview 82
Management 91
Risks & Considerations 96
Financials & Valuation 99
Chapter Three Step III: Business & Financial Due Diligence 121
Business Due Diligence 123
Financial Due Diligence 148
Chapter Four Step IV: Valuation & Catalysts 171
Valuation 173
Market and Intrinsic Valuation 174
Buyout Valuation 194
Catalysts 206
Setting the Price Target 227
Chapter Five Step V: Investment Decision & Portfolio Management 233
Making the Investment Decision 236
Monitor the Investment 243
Portfolio Construction 250
Portfolio & Risk Management 263
Post-Mortem: Delphi Automotive 279
Bibliography & Recommended Reading 289
