BRUCE C. GREENWALD was Founding Director of the Heilbrunn Center for Graham and Dodd Investing at Columbia Business School from 2001 until his retirement in 2019. In addition to training thousands of students in the mysteries of value investing, he taught oversubscribed courses on the economics of business strategy and globalization. His book Competition Demystified, published in 2005, is still in print. He has also been Chairman of Paradigm Capital Management since its founding in 2007 and the Director of Research at First Eagle Funds from 2007-11, serving as a senior advisor since.

JUDD KAHN is currently a partner in Davidson Kahn Capital Management. He started his professional career as a historian, worked as a consultant and financial executive, and has been involved in investment management since 2000. He has a doctorate in history from UC Berkeley.

ERIN BELLISSIMO is the Managing Director of Notre Dame's Institute for Global Investing. She was a founding director of Columbia's Heilbrunn Center, has worked in hedge funds and banking, and sits on the board of Girls Who Invest. She has a BSBA from Bucknell and an MBA from the Wharton School at the University of Pennsylvania.

MARK COOPER is CIO and Co-founder of MAC Alpha Capital Management and an adjunct professor at Columbia Business School. He previously worked at First Eagle Investment Management, PIMCO, Omega Advisors, Pequot Capital, and JPMorgan. He holds an MBA from Columbia Business School and a SB from MIT.

TANO SANTOS is the David L. and Elsie M. Dodd Professor of Finance and the Faculty Director of Columbia's Heilbrunn Center. He has succeeded Bruce Greenwald as the professor teaching the value investing course. He has a doctorate in economics from the University of Chicago.

Dedication v

Acknowledgments ix

Introduction xi

1 Value Investing: Definitions, Distinctions, Results, Risks, Principles 1

2 Searching for Value: Finding the Right Side of the Trade 17

3 Valuation in Principle, Valuation in Practice 41

4 Valuing the Assets: From Book Value to Replacement Costs 71

Example One: Hudson General 91

5 Earnings Power Value 103

Example Two: Magna International 123

6 Growth 141

7 "Good" Businesses 161

8 The Valuation of Franchise Stocks 187

Appendix to Chapter 8: Return Calculations for Franchise Businesses 217

Example Three: WD-40 231

Example Four: Intel 253

9 Research Strategy 301

10 Risk Management and Building Portfolios 321

Investor Profiles 339

Warren Buffett 343

Robert H. Heilbrunn 375

Walter and Edwin Schloss 381

Mario Gabelli 393

Glenn Greenberg 395

Paul Hilal 399

Jan Hummel 403

Seth Klarman 407

Michael Price 411

Thomas Russo 415

Andrew Weiss 419

Index 423