Margin of Safety: Risk-averse Value Investing Strategies for the Thoughtful Investor
ShathirAcknowledgments
Introduction
I Where Mos t Investors Stumb le
ix
xiii
1
1 Speculators and Unsuccessful Investors 3
2 The Nature of Wall Street Works Against Investors 19
3 The Institutional Performance De rby: The Clien t Is the Loser 3S
4 Delusions of Value: The Myths and Misconceptions ofJunk
Bonds in the 1980s 55
II A Value-I nvestment Ph iloso phy 79
5 Defining Your Investment Goals 81
6 Value Investing: The Importance of a Ma rgin of Safety 87
7 At the Root of a Value-Investment Philosophy 105
8 The Art of Business Valuation 118
III The Value-Investment Process 149
9 Investment Research: The Challenge of Finding Attractive
Investmen ts 151
10 Areas of Opportunity for Value Investors: Catalysts, Market
Inefficiencies, and Institutional Constra ints 162
11 Investing in Thrift Conversions 182
12 Investing in Financially Distressed and Bankrupt Securities 189
13 Por tfolio Management and Trading 209
14 Investment Alternatives for the Individual Inves tor 222
Glossary 229
Bibliography 241
Index 243