Tuesday, July 13, 2010

MUST READ BOOK: Value Investing by James Montier

Value Investing: Tools and Techniques for Intelligent InvestmentEveryone knows I am a classic Graham and Dodd value investor who (has) worshipped at the altar of Warren Buffett for many years.


THE INTELLIGENT INVESTOR by Benjamin Graham has been the definitive text (along with his massive tome, SECURITY ANALYSIS) on value investing techniques for decades.


Now it appears we have another book to add to this collection.


VALUE INVESTING by author James Montier is a stunningly comprehensive analysis of why value investing trumps all other forms of investment.  This is no superficial analysis of the subject but a highly detailed and statistical review of how buying on the cheap is the only method of securing long-term profits for investors.


Lots of graphs, lots of charts, lots of numbers, and most of all, lots of analysis proving what Graham, Buffett, and I have been telling investors for years.


Buy low, sell higher.


NOT buy high, sell higher.  This is momentum investing and it does not work over time.


To get you started before you buy this excellent book, here is an interview with James Montier where he explains some of his ideas.


I cannot recommend this book more highly.  BRILLIANT on every level.  Every page is bristling with critical advice for investors.  This book is simply stunning to read for its depth and practical advice.


For the record, I do not know the author and have no financial stake in the sale of this book.


Robert J. Abalos, Esq.