Table of Contents

Introduction 1

Part I: The What and Why of Value Investing 7

Chapter 1: An Investor’s Guide to Value Investing 9

Chapter 2: How Value Investors View the Markets — and Vice Versa 23

Chapter 3: The Value Investing Story 37

Part II: Fundamentals for Fundamentalists 57

Chapter 4: A Painless Course in Value Investing Math 59

Chapter 5: A Guide to Value Investing Resources 85

Chapter 6: Statements of Fact Part 1: Understanding Financial Statements 97

Chapter 7: Statements of Fact Part 2: The Balance Sheet 111

Chapter 8: Statements of Fact Part 3: Earnings and Cash Flow Statements 131

Chapter 9: Games Companies Play: Irrational Exuberance in the Financial Statements 151

Chapter 10: On Your Ratio Dial: Using Ratios to Understand Financial Statements 169

Part III: So You Wanna Buy a Business? 187

Chapter 11: Appraising a Business 189

Chapter 12: Running the Numbers: Intrinsic Value 195

Chapter 13: Running the Numbers: Strategic Financials 217

Chapter 14: Beyond the Numbers: Strategic Intangibles 239

Chapter 15: Warren’s Way 257

Chapter 16: Shopping for Value: Deciding When the Price Is Right 267

Part IV: Becoming a Value Investor 285

Chapter 17: Special Packages: Funds, REITs, and ETFs for Value Investors 287

Chapter 18: Shopping for Value: A Practical Approach 315

Part V: The Part of Tens 329

Chapter 19: Ten Signs of Value 331

Chapter 20: Ten Signs of Unvalue 337

Chapter 21: Ten Habits of Highly Successful Value Investors 343

Index 347

About the Author

Peter J. Sander is a professional author, researcher, and investor living in Granite Bay, California. His 15 personal finance and location reference book titles include The 250 Personal Finance Questions Everybody Should Ask, Everything Personal Finance, and the Frommer’s Cities Ranked & Rated series. He has developed over 150 columns for MarketWatch and TheStreet.com. His education includes an MBA from Indiana University, he has completed Certified Financial Planner (CFP) education and testing requirements, and his experience includes 20 years as a marketing program manager for a Fortune 50 technology firm and over 40 years of active investing.

Janet Haley CFP, CMFC is a securities industry professional and has a bachelor’s degree in international business and political science from Marymount College.