- Paperback: 486 pages
- Publisher: John Wiley and Sons Ltd; 1 edition (15 November 2005)
- Language: English
- ISBN-10: 9780471768050
- ISBN-13: 978-0471768050
- ASIN: 0471768057
- Product Dimensions: 13.5 x 3.8 x 20.8 cm
- Boxed-product Weight: 499 g
- Average Customer Review: Be the first to review this item
Other Sellers on Amazon
+ FREE Delivery
+ FREE Delivery
+ FREE Delivery
The Aggressive Conservative Investor Paperback – 15 Nov 2005
|New from||Used from|
MP3 CD, Audiobook, MP3 Audio, Super Audio CD - DSD
Customers who bought this item also bought
Customers who viewed this item also viewed
From the Back Cover
THE AGGRESSIVE CONSERVATIVE INVESTOR
"The Aggressive Conservative Investor will never go out of date. Regulation, disclosure, and other things may change, but the general approach and mindset to successful investing are timeless. Read this book and you will learn the rudiments of 'safe and cheap' investing. An essential read for every amateur and professional investor."
Stan Garstka, Deputy Dean & Professor in the Practice of Management & Faculty, Yale School of Management
"Security analysis toward both better odds and higher long-term payoff: A readable, authoritative guide."
Professor Bill Baumol, New York University
"In reading this book, one is struck by the simplicity of the ideas and the dependence of the investor on his own understandings of reality as opposed to the myths on the street. The updated version of this 1979 classic incorporates all the modern financial engineering that has occurred as a product of the late 20th century, and the new methodologies refine your abilities to measure risk but don't change the fundamentals of value. The updated version of The Aggressive Conservative Investor is very much a value-added proposition."
Sam Zell, Chairman, Equity Group Investment LLC
"I concur with those people who regard Marty Whitman as the 'Dean of Value Investing.' This book is a must-read for everyone interested in understanding the art of investing."
Melvin T. Stith, Dean, Whitman School of Management, Syracuse University
About the Author
Martin Shubik (Branford, CT) is the Seymour H. Knox Professor of Mathematical Institutional Economics at Yale University. He received his B.A. and M.S. degrees in Mathematics and Political Economy from the University of Toronto, and his Ph.D. in Economics from Princeton University.
No customer reviews
|5 star (0%)|
|4 star (0%)|
|3 star (0%)|
|2 star (0%)|
|1 star (0%)|
Review this product
Most helpful customer reviews on Amazon.com
1. The insight that what works in investment is not limited to a going concern analysis. The Author identifies situations that qualify under the "financial integrity approach" (also referred to as the "safe and cheap approach"). These situations involve an asset conversion of some sort - a merger, restructure, recapitalization, creation of a tax shelter etc. According to the Author, this is where wealth creation occurs.
2. The view that stockholders, management and other relevant parties to a company are best viewed as "combinations of conflicts of interest and communities of interest".
3. A realist's view on the position of the outside minority shareholder (The "OPMI" - Outside Passive Minority Interest). As stated in the book "the various participants in our systems economic life seek to obtain edges which benefit them and/or those most closely associated with them." Rather than taking a shareholder's position in isolation, an outside investor should look at the interests involved, and understand their position in relation to those interests. Simple - yes, but a relatively uncommon view in financial markets.
4. The concept and explanation of the "market bail-out" - I.e. an insider takes advantage of elevated market prices in excess of what the corporation is worth in the private market. Whitman explains how the outsider will typically go about taking advantage of this discrepancy through issuance of equity, or merger transaction etc.
As for the imperfections:
1. Repeated misrepresentations of Graham and Dodd. In Philosophy & the study of logical fallacies, I believe they call these red herring arguments.
2. Overly complicated and verbose writing (the academic approach).
Notwithstanding these fairly minor blemishes, I give the book four stars. Practical and insightful guidance from a knowledgable investor, and a different way to view the investment landscape.
In particular, I liked the contrarian recommendation to buy companies w/ LOW margins. That accompanied with mean reversion of sectors gives you plenty of bang for your buck.
The differentiation of economic and accounting earnings - I have yet to see this descirbed anywhere else. I also have yet to see a sell-side analyst understand this concept.
There are also many good real world examples that we find occuring again and again and again and again....this alone makes it worth the read.
That being said, getting through this was a slog. It felt too much like a dry text book. Maybe I am a victim of flashier editing that is in vouge these days....
In setting forth an investment philosophy, the book compares well with "Common Stocks and Uncommon Profits" by Phil Fisher and "The Intelligent Investor" by Benjamen Graham (both recommended). Whereas Fisher emphasized growth companies and management analysis and Graham emphasized earnings, Whitman and Shubik emphasize low price/book ratios. They support their position quite ably with examples and , where available, studies.
The Aggressive Conservative Investor also contains a good bit of information about securities analysis. While it is not as in-depth as "Security Analysis" (the Graham and Dodd classic), the chapters on financial accounting and GAAP are a must read, particularly since the book convincingly demonstrates that the utility of financial statements will differ depending upon the position of the person reviewing them.
Whitman and Shubik are most certainly value investors who focus on analyzing a particular company (as compared to the market as a whole, interest rate trends, etc.), although they also cover "asset conversion investing," which may involve investing in distressed companies. They make an excellent argument that, in many cases, companies with unencumbered assets may make excellent investments. They also freely take exception to accounting conventions that emphasize earnings, and they repeatedly demonstrate how earnings may be affected by accounting policies that are beyond the control (and arguably the understanding) of most investors, including me.
Another interesting thing about this book is that it covers different corporate constituancies (banks, bondholders, management, insurance companies, passive outside shareholders, etc.) and how their involvement affects and is affected by corporate activities in great detail. The book notes that even investors in common stock may have different objectives, and it discusses how these perspectives may affect the company over time.
The book also has an excellent discussion of sources of corporate disclosure, in order to take advantage of the company's public communications to understand it better. While I am generally aware of many of these sources, the book does a commendable job of explaining them in greater detail.
The Aggressive Conservative Investor does contain some numeric analysis that may be hard to follow, and it can't be called an "easy read," although it certainly is not as hard to read as "Security Analysis." Moreover, some of the information contained in the book is now outdated due to changes in the tax code. These are minor concerns to me, however, and I would highly recommend this book to anyone who is serious about investing.
The Guru Investor and The Intelligent Investor
Look for similar items by category