Here are couple bulleted lists that I drew from Mr. Whitman's book. The book did not grab my attention as some of other value investing based book, but I think the following lists are full of wisdom.
Value Investing: A Balance Approach Martin Whitman
- Value Investing (VI) uses a balanced approach to analysis so that there is no a priori primacy given to any one factor in an appraisal.
- In VI, the essential goal is to value a business or the workout potential for credits issued by trouble companies.
- In VI, equity holdings are viewed as permanent or semipermanent commitments, subject only to a risk arbitrage exception.
- In VI, macrofactors such as the level of stock averages (e.g., the DJIA), forecasts of interest rates, or the GDP are ignored.
- In VI, as part of a balanced approach, businesses are viewed as both going concerns and as resource converters, deploying and redeploying their asset bases and liabilities into new areas including mergers and acquisitions, changes in control, massive refinancing, IPOs, and LBOs.
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