The Entrepreneurial Investor: The Art, Science, and Business of Value Investing

Foreword
by Neil Cavuto vii

Introduction: Is Investing an Art or a Science? xi

Part I: Think Like an Owner: The Art of the Entrepreneurial Investor 1

Chapter 1 Eyes Believe What They See; Ears

Believe Others 3

Chapter 2 Others’ Irrationality Is Your Opportunity 9

Chapter 3 Dirty Harry’s Investment Philosophy 13

Chapter 4 Adversity in Diversity: Portfolio

Concentration 17

Chapter 5 Just Buy the Best (Which Does Not

Include Most Mutual Funds) 21

Chapter 6 Inspirational Figures: Benjamin Graham 27

Part II: Companies Worth Owning 33

Chapter 7 Who Really Manages The Brand?

(Hint: It’s Not the Company) 35

Chapter 8 What Makes You So Special? 39

Chapter 9 Company Culture Is More Important than Ever 45

Chapter 10 Bogie & Bergman Explain

Elasticity of Demand 51

Chapter 11 Red Flags and Roaches 57

Chapter 12 Inspirational Figures: David Packard 65

Part III: The Owner’s Manual 71

Chapter 13 Televised Advice: No Worse than

Drilling Your Own Teeth 73

Chapter 14 Lies, Damned Lies, and

Financial Statements 79

Chapter 15 How to Be an Annual Report Detective 85

Chapter 16 How Inventory Can Skew the Financials 91

Chapter 17 Great First Impressions: 10 Signs of a Strong Company 99

Chapter 18 Inspirational Figures: Bernard Baruch 105

Part IV: What’s It Worth—To Me? 111

Chapter 19 The ABCs of Market Ineffi ciency 113

Chapter 20 “Wait Till the Moon Is Full” 119

Chapter 21 Today’s Price for Tomorrow’s Growth: The X Factor 123

Chapter 22 The Long View, and Why Women Are Better Investors 129

Chapter 23 Intrinsic Value: Putting it All Together 139

Chapter 24 Inspirational Figures: Howard Hughes 147

Epilogue: The Fortune Cookie That Ate Wall Street 153

About the Authors 157

Notice and Disclosures 159

Notes 163

Index 167

Contents