Before the exam, you must know that I did not buy it just to read a copy of this book and then they write (as I did with all My other comments). The author (which I have not come just now) contacted me asked if I wanted to write his book, and gave me a copy. As it has been approved by Nassim Taleb and James Montier, I thought it might be interesting to read.

I was a bit skeptical about the book is certainly Value Investing Value investing and the “active” must be a bit of a gimmick? After reading the book I am especially impressed by the extensive and very interesting statistics. In addition to the book value in providing a review and strengthening basic principles of investment value, it has two particularly useful ideas. The first is that the average return of stock market does not happen very often, and the second is multi-input Katsenelson’s (price / earnings ratio) of the model.

The first of these points is Katsenelson main thesis: the very long term (100 years +) than the average stock market returns (U.S.) consisted of long periods above average returns (bull market), followed by long periods even lower returns than the average (What calls Katsenelson range “bound” markets). I love how the author says, expect

“… investors that the average yield observed over the past century are likely to be disappointed that average happens much less often than we said. “

This brings us to the party Katsenelson most useful book. Her review of data going back to more of these shows long-term cycles that do not explain economic growth, interest rates and inflation, yields in the different periods over the average yield below means. This was the beginning of the period (PER) that mattered. The expansion or contraction of PEX market is responsible for virtually all of the difference in performance (with the exception of the Great Depression of 1929-1932) in different phases of the market over the last century. I found it very interesting: I knew that much had been invited, but I do not know that was probably the only thing that matters (short of complete disaster).

Following this, to show Katsenelson Where are we in the cycles of the cons above-average yields are below (luckily, it attempts to understand that most are can say at any time only a particular outcome has a probability higher than other results). I liked the way he approached this subject. Instead of, say, the historic year for ONE, it presents the data in different ways: with one year of follow PER and then also with three, five and ten year average trailing PERS. This will set a useful sensitivity analysis of extremely high current return on equity in the U.S. and allows us to draw our own conclusions, if in our opinion differs from that of the author (I think it is a good idea). < , Br />
His analysis shows that we’re probably in a range market that began in 2000, leading to two important practical considerations investments. The first is that dividends of vital importance: they accounted for 90% of the fifth 9% average annual nominal return during range-bound markets Katsenelson recognized during the last century! The second is that it is not fully invested much less than in bull markets, because although the market varies widely in range bound markets, break out the fluctuations.

Mohnish Pabré comes to the same rejection of long-term buy and hold investor Dhandho approach in terms of seeking the highest returns possible (without reference to market) . Katsenelson said, but will only provide a significant outperformance satisfactory yields probably due to the overall low yields. While both agreed that for an investor to sell (which many super-investors, including Marty Whitman and Joel Greenblatt is considered very difficult or impossible to do well). Interestingly, Fabre Katsenelson and both agree on the general principle: that you left your plan in place before investing.

This brings us to Katsenelson multi-input for each model, where by using a simple model, a “means” adjusted PER of growth factors such as quality of business, financial risks and propose the dividend yield. I think it’s a very good idea and something I want to try.

I do not like all the books Katsenelson. For example, I found his efforts to explain Discounted Cash Flow Analysis with Tevye the milkman and his cow, a little confused and I found more errors than normal (although I ‘m not sure if I released the final version was by

The author of the yield general conclusions about future U.S. stock exchange by Warren Buffett has already been in two articles published in Fortune magazine in 1999 and 2001 presented entitled “Warren Buffett on the Stock Exchange “, both by Carol Loomis.

Katsenelson Buffett and differ in their view of the importance of interest rates on historical returns and Katsenelson (inevitably, since her book is ) clearly shows more detailed statistics. I’m not sure that Buffett would think that most investors would not benefit from efforts to put on their portfolios more quickly (the vast majority of investors have the opposite problem – How Katsenelson itself When he returns, a study of the absurd, terrible shows quotations investors actually receive funds from the total in 19 years to 2002).

So where are we ? sale with a book with some good ideas and good information and statistics, but with a central finding (no more) that I suspect that most investors are simply too difficult to do well (despite the advice Katsenelson, how do we do perhaps). Problems that arise from our psychological distortions are very difficult to deal satisfactorily: sometimes our efforts to (it) could have improved the opposite effect.
Rating: 5.4

Despite these concerns, the contents of this book, brilliant moments. The active value investment strategy which, although not necessarily novel, brings together many important lessons to invest in a very simple and understandable by its QVG (Quality, Valuation and Growth) of the frame. The author uses simple parameters such as P / E to build a framework for business analysis. In light of recent accounting irregularities in the “E” in P / E, but this parameter to a size may be too simple for everyone but the most novice investors. However, it is a start.

The last third of the book and the reader shares many the writer’s thoughts about buying, holding and selling shares. To see the most interesting chapter was a chapter on “sale” and how to build a strong property sales. (useful for traveling salesman )

Two servings Vitaliy book – its active value investment strategy and its various chapters on the practical application would be – probably enough for a strong entry into an ocean of pounds invested usually heavy with promise and light on actual content. Basically, the idea of the author, as markets usually have two long-term “trends” and they are not bull and bear. Instead of This, he believes there are Bull (Completed, including, most recently in 2000) and flat, the market range. Between 1960 and 1980, the major indexes up and down and up and down, but on the whole period Twenty years ago little or no meaning in either the Dow or the S & P 500. He believes that in 2000, we have a good start. His chapters on related markets range offers an analysis very interesting and reveals the psychology, the long-term trends in the readers market.

All-in-all, Active Value Investing: Making Money in Range-Bound Markets is a enlightening book for anyone who invests in the beginning. In other words, some of the writing can drag and strategy Vitaliy an idea “down” dumbed experienced investors. In addition, statistically a passive index was found to actively invest about 60% of the time lost going back to the end of last century. A best book on investing Jeremy Siegel J would “Stocks for the long term.”
Rating: 5.2

Who is
Vitaliy Vitaliy Katsenelson is a CFA charter holder and a portfolio manager with Investment Management Associates. He has been involved in the investment industry since 1994. Vitaliy is an investment value of stock blogger on the site, ContrarianEdge. com. I give more credibility if the authors are themselves prepared for public comment and discussion with a blog statement.

In addition to his work in writing and portfolio management, Vitaliy also teaches at the University of Colorado at Denver. He teaches an interesting class probe, designated practical equity analysis and portfolio management. We can say that Vitaliy has experience teaching writing style clear and good use of examples in Active Value Investing.

Vitaliy life is another example of the American dream come true. He grew up in the Russian city of Murmansk during the Cold War, overcame his aversion to the United States and his family emigrated to the United States, earned a BA and an MA from the University of Colorado at Denver and now has a successful professional career. It is a very impressive history, which I’m sure there Vitaliy a unique perspective on life. I was very happy Vitaliy history in the Acknowledgements section of the active value investment. It is on the last pages of the book, so be sure not to miss.

Why should you read this book?
First, Vitaliy is fully aware of the public for his book. value investors are very skeptical, and Vitaliy immediate disarmament of the public mentally strong. I laughed when I thought the Q & A session PLAYER “skeptics. I was more than ready, in the role of step skeptical reader. The Q & A session has a good job of answer my questions about what to invest actively, which is a range-bound market, and what can I do to fix this market challenge. After this short section, I was motivated to learn more.

We are in a “range-bound” market? A survey
Part I of Active Value Investing if we are in a “range-bound” market. Vitaliy begin this section with a warning, you put on and you lower your expectations, and of course my expectations have declined a little. Do not worry, my expectations have risen back to page 72 of this 282-page book, and it was definitely a worthwhile read.

The first 72 pages book takes you through a detailed historical market statistics to support the thesis that we are required Vitaliy in a broad market. Like many other recent pieces is based on past market performance, this part of the book largely on Yale University professor Robert Shiller data. I must admit I’m not a big fan of the analysis of historical market and saw, as research elsewhere, it was difficult to maintain this section of my interest . However, paragraphs a to take on the Japanese market (27-29) raise my interest, and this discussion has helped explain the difference between me and the bear market range.

Also if I struggle a bit to get through this part of the book, I came to believe in any case withdrawn, there is much evidence of the possibility that we support in a number captive. could be My problem I think too fast. When you’re like me, I recommend you browse this Part I of Active Value Investing once you are convinced that we are bound in a large market.
< , br /> How can I active investors value?
Part II of the current value of investment was much more to my taste. You learn to be an “active investor value” . Vitaliy does so by specifying the quality, assessment and framework for growth. I found this to be an excellent approach for analyzing stocks.

In Chapter 5 on quality, I was particularly pleased to see a section on competitive advantage. I found it interesting that Vitaliy focuses on the importance of sustainable competitive advantage much as I do, and the same word to her that I use. I know that Buffett, the term “uses a sustainable competitive advantage”, and I saw some changes in other places, but I prefer to focus on “sustainable competitive advantage . To further illustrate what is a sustainable competitive advantage, Vitaliy offers a wide debate on the mark on a number of good examples to make his point. I had a discussion similar to the trademark in October 2005 in a magazine brands compared to franchises.

I also talk about the guilt was very revealing. Vitaliy notes, such as share buybacks distort the development of the balance sheet and debt-asset or debt to equity ratios that are misleading results. I never thought about it before, and I was mostly with ratios of net debt to equity in my analysis, I found this discussion extremely helpful. recommends instead the use of the ratio of net debt to equity, Active Value Investing, we use the debt / EBITDA flows, debt, cash / operating activities, EBITDA and interest expense / cash flow from operations to interest expense /. I will definitely relying on some of these other conditions a bit more in the future. Vitaliy continued this discussion of debt with an illustrative case example, the capital of Colgate-Palmolive. This is one of the strengths of Active Value Investing, the book contains many examples for the reader to understand, what a concept really help. Vitaliy fully explained how sustainable competitive advantages are quality management, predictable earnings, significant free cash flow, strong balance sheet and high return on some key elements that determine the quality of aid.

The growth is also an important investment in the active value. Vitaliy used an inverted pyramid to growth factors to explain growth. It is the primary societies to use strategies to increase sales and then on the topic of growth margin improvement of operational efficiency, economies of scale talk and share repurchases. Vitaliy has a good case study of the program of share repurchase Westwood One, which can, as share repurchases to destroy shareholder value if done incorrectly shows. This section ends with the theme of dividend growth and if their relative importance in the broad market.

The evaluation will be placed on the active value investing course. Vitaliy has an excellent job explaining the concept of analysis of cash flows discounted at the story of Tevye the milkman. Tevye cow, gold, and their various cash flows are presented skillfully. I know I’m going with this chart in the future if called upon discounted cash flows to explain. A unique concept introduced was the absolute model p E /. The absolute P / E valuation method uses a schedule of expected EPS growth rates and dividend yields to define a basis of P / E values. This multi-factor P / E model seems practical, but relatively untested in my head. I speak Vitaliy curious to see in ten years if still in use. Regardless, it might nevertheless be interesting to get the results you get with more traditional models of discounted cash flow with this absolute P / E valuation method to compare to see how the results of your fate.

I recommend you read Chapter 12: Process Sale – Make Darwin proud when you read something in this book. This chapter has been a wakeup call for me. I’m not selling a very good process and that presented Vitaliy is very logical and seems to be the key to achieve good investment returns in a market range. Vitaliy recommends the creation of a P / E target to immediately determine when to sell a stock. He even suggests a strategy of stop-loss, after a stock reaches its fair value. I started with this particular strategy.

To conclude, I also recommend reading chapter 13 on risk. If you’re new to the subject of risk and chance, this chapter will be an excellent introduction for you on the subject. He breaks the concept of randomly into two components: the degree of uncertainty and the importance of impact. I am a big fan of Steve Irwin, the Crocodile Hunter, and I think Vitaliy think has an excellent job of discussing the role of chance in the life of Steve Irwin.

In summary, I have a lot of substance to Active Value Investing. The early chapters might turn off some (market history buffs could love), but the second half of the book is a keeper. If you’re new to the concept of value investing, you learn a lot of writing clear and informative. Even if you are an experienced investor value, you will find unique concepts and new perspectives on the investment value.
Rating: 5.4

Think 15 was 500 from 1983 to 1999 the average annual return on the S & P. 7%, assuming reinvestment of dividends . A performance similar to that of the Dow Jones from 2008 indicates that trade the Dow more than 139,000 in 2024

It is within this context that I Active Value Investing: Making Money in Range Bound and markets portfolio manager Vitaliy Katsenelson the author found an interesting and insightful to understanding the mindset long swings of Mr. Market. Do not assume that the word “active” in the title, to recommend market timing – the last thing that is affected by Vitaliy. In fact, he admits that the attempt, the market is a fool’s game. Instead use with emphasis on fundamental valuation – discounted cash flow, pricing models, profit and margin of safety – must take the market on the ground.

Each serious participant in the equity markets is well aware that the markets during periods of negotiations in some regions more than others. During the 16 years are approximately the same value sixteen years later, in 1966 and ends in 1982, an investment in the Dow Jones in 1966 would have. Oscillating around 1000, the Dow was around 1,000 in 1982. Whatever you earn dividends have been destroyed by inflation during this period. A simple approach would buy the product and maintain an annual yield of zero percent during this period. But during this period of sixteen years in an opportunistic buying opportunities in the U.S. in early 1974, when Buffett so famous quip: “I was three times salary to buy securities to back twice. ”

Active Value Investing describes how the careful use of fundamental analysis, may participate in the advantage of such an opportunistic time on the market. The emphasis on only three variables that are really important in a society – the value, quality and growth – Investors will learn how the intelligent use of mood swings of Mr. Market. Unlike most books focus, significant investment in the buying process is, Active Value Investing is a very detailed examination of the sales process, something that I find the most misunderstood area for investment. Do not get me wrong, if you do not buy at the right time, know when to sell, does not mean much. Not only that, Vitaliy you know when her body to buy shares, but it also takes a look deep into the sale of shares, issue under discussion is not enough value to investors. Active Value Investing seeks to change all that.

We all know that markets do the ride and market timing is crazy. The key to the use of market fluctuations – buy it on the ground and selling points – will focus on evaluating individual securities. In fact, the price at which you buy, the final destination if you sell your home. Understand what to look for in companies and the value it is an absolute must if you hope to succeed in the market for a reasonable period of time. Active Value Investing helps you in the right direction.
Rating: 5.4

This is by far the worst book on investing I’ve ever read. I experienced a feeling of fear in reading this book know, I read something better. Do not invest his book as a value.
The author tries to find companies with low P / E should be fundamentally sound. It is very short description of what is unnecessary and it is not sustainable. In fact, his method for determining the value of a stock as a whole is very flat. I felt like it was just a journalist described the surface of things. It says nothing about where to find a social base, but we have just described, they should look like “strong trend, good, higher, etc.

The worst All, I suspect that the company he gave his friends and colleagues he has high ratings. For example take a look at all the comments. Most read as the publishers of the book review. promises very long and boasting. Then he gave the book a few commentators and asked them to consider it. You talk about this in their assessments. The result is that all contributions over the same tone as if gave them some press to put their personal touch, without having read the book. And finally, many commentators of the city, where he teaches, Denver came. /> Most likely some sort Associates only do him a favor .

Bottom line. N ‘not buy this book. I’m going to put me here. 01 Cent, if you really need.
Rating: 5.1