Says Bill Ackman of Pershing Square Capital Management about The Art of Value Investing: "e;I learned the investment business largely from the work and thinking of other investors. The Art of Value Investing is a thoughtfully organized compilation of some of the best investment insights I have ever read. Read this book with care. It will be one of the highest-return investments you will ever make."e; Based on interviews with the world's most-successful value investors, The Art of Value Investing offers a comprehensive set of answers to the questions every equity money manager should have thought through clearly before holding himself or herself out as a worthy steward of other people's money. What market inefficiencies will I try to exploit? How will I generate ideas? What will be my geographic focus? What analytical edge will I hope to have? What valuation methodologies will I use? What time horizon will I typically employ? How many stocks will I own? How specifically will I decide to buy or sell? Will I hedge, and how? How will I keep my emotions from getting the best of me? Who should read The Art of Value Investing? It is as vital a resource for the just starting out investor as for the sophisticated professional one. The former will find a comprehensive guidebook for defining a sound investment strategy from A-to-Z; the latter will find all aspects of his or her existing practice challenged or reconfirmed by the provocative thinking of their most-successful peers. It also is a must read for any investor institutional or individual charged with choosing the best managers for the money they are allocating to equities. Choosing the right managers requires knowing all the right questions to ask as well as the answers worthy of respect and attention both of which are delivered in The Art of Value Investing.

Says Bill Ackman of Pershing Square Capital Management aboutThe Art of Value Investing:"I learned the investment business largely from the work andthinking of other investors. The Art of Value Investing is athoughtfully organized compilation of some of the best investmentinsights I have ever read. Read this book with care. It will be oneof the highest-return investments you will ever make."Based on interviews with the world's most-successful valueinvestors, The Art of Value Investing offers a comprehensiveset of answers to the questions every equity money manager shouldhave thought through clearly before holding himself or herself outas a worthy steward of other people's money. What marketinefficiencies will I try to exploit? How will I generate ideas?What will be my geographic focus? What analytical edge will I hopeto have? What valuation methodologies will I use? What time horizonwill I typically employ? How many stocks will I own? Howspecifically will I decide to buy or sell? Will I hedge, and how?How will I keep my emotions from getting the best of me?Who should read The Art of Value Investing? It is asvital a resource for the just starting out investor as for thesophisticated professional one. The former will find acomprehensive guidebook for defining a sound investment strategyfrom A-to-Z; the latter will find all aspects of his or herexisting practice challenged or reconfirmed by the provocativethinking of their most-successful peers. It also is a must read forany investor - institutional or individual - chargedwith choosing the best managers for the money they are allocatingto equities. Choosing the right managers requires knowing all theright questions to ask as well as the answers worthy of respect andattention - both of which are delivered in The Art ofValue Investing.

Introduction 1Chapter 1 "All Sensible Investing Is Value Investing" 5What It Means to Be a Value Investor 6Does Quality Matter? 13The Value of Growth 19The Value Mindset 25Part One Field of Play 33Chapter 2 Circle of Competence 35The Right Size 36Industry Preference 45Where in the World? 57Chapter 3 Deficient Market Hypothesis 65The Human Element 66It's a Matter of Time 74Chapter 4 Fertile Ground 81In Search of Uncertainty 82Special Situations 86Operating Turnarounds 93Chapter 5 Generating Ideas 99Behind the Screen 99Follow the Lead 106Reliable Sources 111Part Two Building the Case 115Chapter 6 Cutting Through the Noise 117Second-Level Thinking 118Macro versus Micro 120Business First 127What Quality Means 131Crunching the Numbers 135What Could Go Wrong? 139From the Top 147How Important Is Management? 147Handicapping the Jockeys 149Red Flags 157Catalysts 164Getting It Done 169Organizing Principles 174Chapter 7 Getting to Yes 183Cash (Flow) Is King 184Multiple Angles 190The Informed Buyer 192Model Behavior 194Playing the Odds 199Theories of Relativity 202Pulling the Trigger 206Part Three Active Management 213Chapter 8 The Portfolio 215Concentration versus Diversification 215The Size That Fits 222Cognizance of Correlation 227Chapter 9 Playing the Hand 233Trading Mentality 233Dealing with Adversity 239Taking a Stand 248Attracting Activists' Attention 251Chapter 10 Guarding Against Risk 257Margin of Safety 258Building a Position 261Cash Management 263Midas Touch 267Hedging Bets 268To Short or Not to Short? 268Value Destroyers 271Portfolio Hedging 276Is Shorting Inherently Evil? 277Chapter 11 Making the Sale 281Why to Sell 282Selling by the Numbers 286Getting the Timing Right 290Sale Process 293Part four Of Sound Mind 297Chapter 12 Of Sound Mind 299Competitive Spirit 300Independent Thought 303Perpetual Student 306To Err Is Human 309Be Ever So Humble 312The Final Word 315About the Authors 317Index 319