by Christopher H Browne
Although small and concise, The Little Book of Value Investing by Christopher H. Browne provides great advice on value investing techniques for the stock market.
Main Message to the Value Investor
The principal message to investor readers is that those value investors who properly research and then patiently apply this research will achieve superior investment returns in the long-term.
Value Investing Techniques
The techniques highlighted in the Little Book of Value Investing are the opposite of aggressive investment strategies. The Little Book techniques emphasise patience to generate long-term value.
The Little Book of Value Investing also has numerous simple explanations of various ratios and techniques for the value investor to apply: for example it explains P/E ratios and analysis techniques to help the investor understand precisely what these terms mean.
Key Investing Messages from The Little Book of Value Investing
- Search out investment stocks that are selling for less than their book value or intrinsic value.
- Also search for investment stocks with low P/E ratios
- Use investing financial ratios for initial indication of if investment stocks will be suitable for the long-term value investor
- Apply patience & invest in stocks when they are under valued. Similarly avoid investing in stocks in a hot market
- Keep an eye on the investing of people inside the organisations. Also keep an eye out for company stock buybacks.
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