Table of Contents ; Preface; Acknowledgments; Prologue: A Short History of Investing; Introduction: Noise; Part I: Illusion; 1 Opinions and Beliefs; 2 Correlation of Errors; 3 The Dark Arts; 4 Purveyors of the Dark Arts; 5 Victims of the Dark Arts; Part II: Verity; 6 Logic-Data-Doubt; 7 Investing as a Negative Art; 8 Shaping the Investment Thesis; 9 How to Be a Wise Investor; 10 The Art of Looking; Part III: Foundations; 11 Price and Value; 12 How to Value a Business; 13 Risk and Uncertainty; 14 The Simple Math of Valuation; 15 Yield-Stability-Strength; Part IV: Diligence; 16 Depth Analysis.
17 Dive for Strength18 Define Good Business; 19 Watch the Game; 20 Meet the Managers; Part V: Policy; 21 Diversification; 22 Another Way to Portfolio; 23 Core Holdings; 24 Growth; 25 The Buffett Portfolio; Conclusion: Noise Control; Notes; Bibliography; Index.
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The financial markets are incredibly noisy and full of opinions, innuendo, and misinformation. They overwhelm the senses, confuse, and disorient, inviting all kinds of deception. No lesson on investing is complete without accounting for the emotional and psychological biases that can lead investors astray and how to correct for those biases. Analytical techniques are useless if they are not integrated into a well-conceived decision framework that recognizes how we are wired to perceive the world around us. That is why Book of Value looks to philosophy and psychology to redefine modern portfoli.