The Value Investors: Lessons from the World's Top Fund Managers

333 Pages·2021·3.945 MB·English

by  Ronald Chan

T H E
V A L U E
I N V E S T O R S
T H E
V A L U E
I N V E S T O R S
Lessons from the World’s
Top Fund Managers
Second Edition
RONALD W. CHAN
Copyright © 2021 by John Wiley & Sons Singapore Pte. Ltd.
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Library of Congress Cataloging-in-Publication Data:
Names: Chan, Ronald W., author.
Title: The value investors : lessons from the world’s top fund managers /
Ronald W. Chan.
Description: Second edition. | Solaris South Tower, Singapore : Wiley,
[2021] | Includes index.
Identifiers: LCCN 2020039214 (print) | LCCN 2020039215 (ebook) | ISBN
9781119617068 (cloth) | ISBN 9781119617037 (adobe pdf) | ISBN
9781119617051 (epub) | ISBN 9781119620662 (obook)
Subjects: LCSH: Investment advisors. | Financial planners. | Investments.
Classification: LCC HG4621 .C425 2021 (print) | LCC HG4621 (ebook) | DDC
332.6—dc23
LC record available at https://lccn.loc.gov/2020039214
LC ebook record available at https://lccn.loc.gov/2020039215
Cover Design: Wiley
Cover Image: © samxmeg/Getty Images
Typeset in 11.5/14 point Bembo Std by SPi Global, Chennai, India
10 9 8 7 6 5 4 3 2 1
For my wife, Jacinth, whose faith in and love for me have no
boundaries; and to my four children, Chelsea, Wellesley,
Brighton, and Ronald Jr., who I hope will become stewards
of their own future endeavors and find everlasting joy in
their lives.
Contents
Foreword xiii
Preface xv
Chapter 1 Master of the Market Cycle 1
Howard Marks, Oaktree Capital
Management
From Equity to Credit 6
A Priority on Avoiding Losses 10
The Pendulum Swing 14
The Negative Art of Investing 17
Nobody Knows 20
Chapter 2 Free to Choose in Value Land 24
Walter Schloss, Walter & Edwin Schloss
Associates
Living through the Great Depression 28
The Meaning of Survival 31
vii
viii CoNTENTS
Net-Nets 32
Setting the Right Pace 36
Know Thyself 39
Chapter 3 Once Upon a Time on Wall Street 42
Irving Kahn, Kahn Brothers Group
Becoming Graham’s Disciple 48
Preaching Value 51
A Centenarian Diet 56
Chapter 4 The Making of a Contrarian 59
Thomas Kahn, Kahn Brothers Group
A Modified Graham Approach 64
The Case for obscure Securities 69
Market Reflection 72
Chapter 5 On the Shoulders of Value Giants 75
William Browne, Tweedy, Browne Company
A Valuable Detour 81
Statistics and Beyond 82
Setting a Global Standard 85
The Social Science of Investing 88
The Market Ahead 91
Chapter 6 A Journey to the Center of Value 94
Jean-Marie Eveillard, First Eagle Funds
Valley of Tears 99
The Inefficient Market 101
The Meaning of Value 105
The Courage to Say No 108
Seeking Protection 110
Contents ix
Chapter 7 The Self-Taught Value Spaniard 114
Francisco García Paramés, Cobas Asset
Management
on a Solo Value Hunt 119
Investing Made Simple 122
Austrian Economics and the Market 125
A Global Rebalancing 129
Chapter 8 The Law of Value Attraction 133
Álvaro Guzmán de Lázaro
and Fernando Bernad Marrase,
AzValor Asset Management
A Value Cross-Path 137
A Value Reunion 141
The Art of Concentration 144
The A to Z of Value 148
Chapter 9 The Odyssey of a Value Broker 151
Philip Best, Quaero Capital S.A.
Establishing the Best Contacts 157
Acquiring the Best Techniques 162
Investing off the Beaten Path 164
A Sustainable Investment Platform 168
Chapter 10 The Income-Conscious Englishman 173
Anthony Nutt, Jupiter Asset
Management
A Victorian Mindset 178
Finding the Right Investment Culture 181
Trusting only Tangible Income 184
The Courage to Keep Going 188
x CoNTENTS
Chapter 11 The Frequent Value Traveler 190
Mark Mobius, Mobius Capital Partners
Reading between the Minds 195
Thinking Big and Small 197
Trouble Is opportunity 200
Feeling the Market 205
Chapter 12 The Value-Oriented Businessman 208
Teng Ngiek Lian, Target Asset
Management
Learning the Numbers 211
The Art of Contrary Thinking 214
Targeting Good Businesses in Asia 217
The Relativity of Valuation 219
A Value Lifestyle 222
Chapter 13 Value Investing in the Lost Decade 225
Shuhei Abe, SPARX Group
A Musical Beginning 230
Breaking the Language Barrier 232
Learning from the West 232
The Evolution of SPARX 235
Building a Westernized Asia 238
Searching for Value 239
Chapter 14 Eternal Sunshine of the Value Mind 243
V-Nee Yeh, Value Partners Group
A Multidisciplinary Path 246
Seeking a Comfortable Price 250
Finding a Value Partner 251
Spotting Value Minds 255
Becoming a Man of Value 257
Contents xi
Chapter 15 The Formless Value Deal Maker 260
Kin Chan, Argyle Street
Management Ltd.
Navigating in the Slum 266
Specializing in Distressed Investing 269
An Atypical Investment Structure 271
The Rise of the “Can’t Do” Spirit 276
Chapter 16 The Accidental Value Investor 279
Cheah Cheng Hye, Value Partners Group
Starting an Investment Hobby Shop 286
Building a Value Temple 288
An Industrialized Process 291
A Value March Forward 295
Chapter 17 The Making of a Value Investor 298
Investment Stewardship 301
Intellectual Humility 303
Developing Your own Rhythm 306
Be Unconventional 308
The Balance Between Diversification
and Concentration 309
Temperament Is Above All 311
Acknowledgments 313
About the Author 316
Index 317