John Mihaljevic’s The Manual of Ideas: The Proven Framework For Finding The Best Value Investments builds on his and his brother Oliver’s wonderful work with the Manual of Ideas newsletter.
The book is a comprehensive assay of value investment theories, accompanying methods for identifying undervalued stocks, and practical considerations in the application of each strategy. John covers the following value investment methods:
- Benjamin Graham’s “cigar butt” rule;
- the sum-of-the-parts analysis;
- Joel Greenblatt’s “Magic Formula”;
- small cap stocks;
- special situations;
- equity stubs; and
- international stocks.
John also suggests following great managers, and using the portfolios of “superinvestors” as a source of ideas.
The book is set out in logical, easy-to-follow format, and it is a worthwhile addition to any value investor’s library. It will be most useful to intermediate-level value investors who have developed an appreciation for the art, but not yet settled on a style. For my part, I am an advocate for “deep value,” which John limits to Grahamite net nets and subliquidation stocks, but which I define more broadly. (My definition covers most of the methods John highlights excluding Greenblatt’s “Magic Formula” for the reasons I have discussed in several posts including How to beat The Little Book That Beats The Market: An analysis of the Magic Formula and How to beat The Little Book That Beats The Market: Redux.) I highly recommend it.
Buy John Mihaljevic’s The Manual of Ideas: The Proven Framework For Finding The Best Value Investments.
Disclosure: I was provided with a free copy of the book for review, and I am quoted in it. I receive a small commission for books purchased on Amazon through this site.