Economics

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

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

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  • Create Date：2021-06-01 08:16:03
  • Update Date：2025-09-24
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  • Author：Ronald Chan
  • ISBN：1119617065
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Summary

In The Value Investors， readers discovered that value investing is not a staid and old-fashioned investment strategy， but is dynamic and ever-evolving。 And most especially， they learned how 12 leading investors， each of whom has a unique value perspective， have consistently beaten the stock market over the years - all these investors come from different walks of life， yet they share the same investment mindset。

Chapters 1 to 4 covered four US value investors: Walter Schloss of Walter & Edwin Schloss Associates; Irving Kahn of Kahn Brothers Group; Thomas Kahn， also of Kahn Brothers Group; and William Browne of Tweedy， Browne Company。 Chapters 5 to 7 featured three European investors: Jean-Marie Eveillard of First Eagle Funds， Francisco Garc�a Param�s who was formerly with Bestinver Asset Management， and Anthony Nutt of Jupiter Asset Management。 In chapters 8 to 12， the author discussed five investors in Asia: Mark Mobius of Templeton Emerging Markets Group， Teng Ngiek Lian of Target Asset Management， Shuhei Abe of SPARX Group， V-Nee Yeh of Value Partners Group， and Cheah Cheng Hye， also of Value Partners Group。

The Second Edition will include updates to all the chapters - these investors' whereabouts， their current professional and personal endeavors and their experiences in the investment world since the first edition was published。 It will also feature new fund managers:

Howard Marks （Oaktree Capital Management， US）
�lvaro Guzm�n de L�zaro （azValor Asset Management， Spain）
Fernando Bernad （azValor Asset Management， Spain）
A top investor based in Australia

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Reviews

Zhenhan ，

Good to remind ourselves on the key concepts of value investing。

Michelle T ，

Decent quick read and a good refresher of value investing but it didn’t blow me away。 The book was structured more like a series of 12 summary interviews。 I did however like the two chapters on V-Nee Yeh and Cheah Cheng Hye， the founders of Value Partners Group。

Saikat Sengupta ，

A decent read。 The author has done an impeccable job by writing about extraordinary value investors whom DIY investors don't know about。 A decent read。 The author has done an impeccable job by writing about extraordinary value investors whom DIY investors don't know about。 。。。more

Somasundaram Sadasivamoorthy ，

Recently I encountered a friend， a follower of value investor。 He gave me a book to start with value investing when I ask him for investment ideas。 I consider myself as a small DIY investor， looking for a “stock of the month idea” to invest 100$ every month。 Had a little bit of time during the Christmas holidays away from work， picked this book from local library and loved it， and recommend it for any newbies。

Dennis Littrell ，

Interesting and educationalThis book isn’t just about value investing。 It’s about value investing throughout the world， especially in emerging markets where the risks and rewards can be substantial。Chan’s approach to investing is summarized in Chapter 13 “The Making of a Value Investor。” I recommend the reader read this last chapter first。 This is not to say that the stories about the careers of the twelve featured fund managers are not interesting。 In fact I found the mini biographies fascinati Interesting and educationalThis book isn’t just about value investing。 It’s about value investing throughout the world， especially in emerging markets where the risks and rewards can be substantial。Chan’s approach to investing is summarized in Chapter 13 “The Making of a Value Investor。” I recommend the reader read this last chapter first。 This is not to say that the stories about the careers of the twelve featured fund managers are not interesting。 In fact I found the mini biographies fascinating and even uplifting。 But the real value in this book is in the lessons from each of the investors。First lesson: Have a “humble” portfolio， that is one that is diversified and consists of stocks chosen through a fundamental analysis of the underlying value of the companies。 There are two styles: a diversified portfolio such as most investment professionals recommend and a more daring approach， a “concentrated portfolio” such as kept by Warren Buffet。 Of course Buffet with his unparalleled expertise could afford to focus on his best bets。 Chan firmly recommends a diversified portfolio。Second lesson: value analysis itself。 Here is where we learn why Chan travelled around the world to interview these very successful fund managers。 It turns out that while the fundamentals of value are almost always the same， the way to find them out differs according to the ability and opportunities of the investor。 The twelve people Chan interviewed show the reader how they did it。 Some investors look more closely at “competitive advantage，” some are more interested in understanding the business itself， while others （like Warren Buffet） are expert at evaluating those who manage the company。Third lesson: read widely and well。 Chan believes investment ideas don’t just drop out or the air。 An understanding of the world beyond the actual markets can be invaluable in making investment decisions。Fourth lesson: Go beyond the fundamentals。 This is especially true when investing in foreign markets。 Understanding national politics， the particular cultural history as well as “macro” events can help the investor make good decisions and avoid some very risky situations。 （Fund manager Teng Ngiek Lian gives some good advice on this aspect of trading in Asian countries in Chapter 9; see especially pages 141-144）。Fifth lesson: an exit strategy based on “when 。。。[your investments] have become fully valued， or their business conditions begin to deteriorate。” （p。 208）Sixth lesson: have the right temperament for value investing （！）。 Yes， it’s hard to sit and wait years for the value of the companies you have invested in are finally recognized by the market。 But to be successful at value investing you have to be able to ride the ups and downs of the market like a boat firmly tethered to shore。 Often you just have to ignore the daily swings in prices and stay firm in your conviction that the value of the stocks you hold is true regardless of what the fickle market may say on any given day。Value investing—that is， investing guided by fundamental analysis as opposed to technical analysis （which measures trends）—would be the nearly unanimous approach by market professionals except for three annoying problems:One， for a host of reasons ranging from complexity to outright fraud， you can’t always get the real numbers。Two， the market is not always rational and efficient。 （Think bubbles， recessions and depressions， greed and fear。）Three， （to repeat for emphasis） even though the stocks you buy may clearly be undervalued they may stay that way for a long time， not just for weeks and months but for years， and in some cases perhaps for a decade or more。 （I won’t quote John Maynard Keynes here， but you know what happens if the long run is long enough！）It should be noted （as Chan reminds us through a quote from Warren Buffett on page 87） that value analysis cannot be separated from an analysis of growth。 Value and growth， Buffet posits “are joined at the hip。”Now for some bons mots from Chan’s sparkling text:“To minimize the chances of encountering。。。shoddy business dealings。。。” one of the things that fund manager Thomas Kahn does is to make “sure that executive pay is fair by industry standards and that top managers have a sizable portion of their net worth in the company through direct stock ownership rather than through the issuance of stock options or warrants。” （p。 41） “It is better to buy a good business at a fair price than a fair business at a good price！” —Warren Buffett （p。 56）“The four most dangerous words in investing are: ‘This time it’s different。’” —Sir John Templeton （p。 89）“Go for a business that any idiot can run—because sooner or later， any idiot probably is going to run it。” —Peter Lynch （p。 90）“Forecasts may tell you a great deal about the forecaster; they tell you nothing about the future。” （p。 93） Warren Buffett again。 By the way， the guiding spirit behind the investing philosophy presented in this book comes primarily from original value investor Benjamin Graham and new school value investor Warren Buffett。“In essence， we look for the next big crash in emerging markets because in value investing， money is made after the crash， not before。。。” —emerging markets fund manager Mark Mobius （p。 128）“When it comes to emerging markets， you cannot rely on the numbers because they cannot be entirely trusted。 You have to go out there and start kicking tires。 Then you have to talk to company management， look into their eyes， and determine whether they are reliable。” —Mark Mobius （p。 129）“A market correction in an emerging economy can easily mean 20 to 30 percent， which is equivalent to a crash in a developed market。” —Teng Ngiek Lian （p。 144）Warren Buffet “improved his strategy by monetizing brand value， which was not a traditional value principle” during the time of Benjamin Graham。—SPARX Group fund manager Shuhei Abe （p。 160）“In the short run， the market is a voting machine， but in the long run it is a weighing machine。” —Benjamin Graham （p。 71 and p。 202）This is a valuable book for any investor。—Dennis Littrell， author of “The World Is Not as We Think It Is” 。。。more

Joel Gray ，

HUMBLE IS PROBABLY THE BEST WORD TO CHARACTERISE THE VALUE INVESTORS IN THIS BOOK。 IT TRANSLATES INTO THE MARGIN OF SAFETY CONCEPT， WHICH DEFENDS AGAINST UNCERTAINTY。 HUMILITY ALSO EQUIPS INVESTORS WITH OPEN MINDS AND TO ACCEPT CHANGE。Because Benjamin Graham wasn't very aggressive about making money he was less affected by fear and greed than many others。When Schloss entered Wall Street his goal was to not lose money， after seeing his Mum lose her inheritance in the 1929 crash and his Dad everyt HUMBLE IS PROBABLY THE BEST WORD TO CHARACTERISE THE VALUE INVESTORS IN THIS BOOK。 IT TRANSLATES INTO THE MARGIN OF SAFETY CONCEPT， WHICH DEFENDS AGAINST UNCERTAINTY。 HUMILITY ALSO EQUIPS INVESTORS WITH OPEN MINDS AND TO ACCEPT CHANGE。Because Benjamin Graham wasn't very aggressive about making money he was less affected by fear and greed than many others。When Schloss entered Wall Street his goal was to not lose money， after seeing his Mum lose her inheritance in the 1929 crash and his Dad everything investing on margin。Schloss learned that if he could simply survive in the market， just like surviving in the war， and not lose money， eventually he will make something。Post the Great Depression financial information wasn't easily accessible and investor sentiment was poor so many stocks traded below net-net value。 Schloss changed to looking for companies selling below BV in the 1970s as net nets evaporated。 Closed the business in 2001 when he found finding companies selling less than BV became difficult also。Irving Khan became BG's teaching assistant in 1931。 His repsect for his partents courage and determination prompted him to study very hard from a young age because he wanted to find a well paid job to one day support them。Discipline breeds independent thinking。At the age of 106 Irving was coming into the office 4 hours a day 5 days a week。The business valuation approach adds the company's future prospects for profit generation into the equation。A concentrated portfolio is more of a bull market phenomenon。Gold is a substitute currency and cannot be printed。As a European who had read extensively about the rise and fall of many family empires within the region Francisco Parames realised that those who weather crisis after crisis are the ones that look for investments with sustainable rowth and value of the LT。Parames doesnt check quotes until 6pm each day。ROCE enable him to evaluate the quality of a business objectively。 Look for companies with ROCE >20%。Jupiter believes that a committe based approach can lead people into a rather weak compromise that ends in mediocre performance。Mark Mobius says to make decisions on what you have learned and act on the information you have gathered。 Never take other peoples advice when making investment decisions。With an open mind you can accept that the world changes and that you must contstantly learn new things to keep pace with it。The real distinction betweeen a good and average investor is really that the former constantly has good ideas about reinvesting capital to create a compounding effect。Investing is not about finding a fixed investment form， but about understanding your temperament compatibility towards investing and improving your style through time and experience。 Otherwise you are always fighting against yourself。Due to the uncertain world most value investors have diversified portfolios。 。。。more

InvestingByTheBooks。com ，

Interview books – what’s the novelty here？ Often long on philosophy， but short on actual advice。 Always dominated by hedge fund characters， as if all the authors have been as awestruck by the razzle-dazzle and unconstrained world of hedge funds， as opposed to stodgy old long-only equity management。 Furthermore， almost without exception， the people profiled in these books are U。S。 based investors。 But on all counts， The Value Investors by Ronald Chan is definitely a separate breed。 Focused on lon Interview books – what’s the novelty here？ Often long on philosophy， but short on actual advice。 Always dominated by hedge fund characters， as if all the authors have been as awestruck by the razzle-dazzle and unconstrained world of hedge funds， as opposed to stodgy old long-only equity management。 Furthermore， almost without exception， the people profiled in these books are U。S。 based investors。 But on all counts， The Value Investors by Ronald Chan is definitely a separate breed。 Focused on long-only， value-based equity managers， equally divided between U。S。， Europe and Asia， the selection of people in the book is instead based on longevity of success， a true adherence to value and a top-notch quality of human character。Although a handful of the investors being interviewed are household names in the financial world， the majority are surely new acquaintances， even for the seasoned market observer。 Naturally， the newcomer interviews – or profiles really， as the author blends direct quotes with his own reasoning in a very fluent manner – are the most interesting ones。 Apart from the novelty of getting to know truly successful European- and Asian based investors， clear regional patterns emerge。 The long history of value investing in the U。S。 has forged a unified “language” of sorts， and way of reasoning that one instantly recognises。 Not so much with the non-U。S。 investors， however。 As U。K。 investor Anthony Nutt puts it: “In the U。K。， value investing has actually been around for a long period of time， but we often don ́t say [the word] because investing is all about seeking value in the first place so it ́s unnecessary to add the word to an investment scheme”。 An investor I personally wished I had heard of ten years ago is Spanish- based Francisco Garcia Parames – yes， his record at Acciona subsidiary Bestinver is impeccable but his reasoning and personality shines even brighter。 Even so， the story and life-success of the recently passed-away American Walter Schloss is perhaps the highlight of the book。 The truest of all the inhabitants in Graham and Doddsville， it is almost shocking to learn that Schloss Associates only managed $350 mn at its peak， despite trouncing the market index over fifty （！） years and being advertised by Buffett not once （“The Superinvestors of Graham and Doddsville speech” of 1984） but twice （Berkshire annual report 2006）！ The chapter on Schloss is very well researched and written – clearly the best piece on him that I have ever read。 Schloss has always been an investor and a human being I have admired greatly。 When will the first in-depth book of this outstanding investor with a second-to-none character be written？Several of the investors discuss the almost contradictory nature of great long-term performance records with the frequent subpar numbers being put up in yearly intervals。 True value stocks often lag behind the market for a long time as they per definition are cheap due to the market’s attention being elsewhere （Mr Market doesn’t have time to price all stocks efficiently at all times！）。 Then suddenly， value is recognized and the subsequent reaction is often swift。 This creates the “time-dichotomy” of more periods of underperformance than outperformance that is experienced by many great investors。 But only in the secluded places of risk managers and quants is it possible to build a great record by daily， even increments。 Instead， individual performance from value investing tends to materialize in spurts。 Oakmark articulated this phenomena a couple of years back in a client letter， stating: How can a batting average of 。2 （i。e。 outperformance 20 % of the time） create a world-leading performance？ But then again， it is puzzling indeed， that this still surprises people when the overall market has behaved like this forever。As a final side note， several of the investors profiled in the book voiced strong concerns about the current- and future state of ETFs。 Considering the impact these leveraged hybrids between high- frequency-traders and mutual funds have on everyday volatility， it is hard not to agree。 As icing on the cake， when adding the often grossly underappreciated counterparty risk， ETFs are bound to cause severe problems down the road。 Our readers are hereby being served a notice！ 。。。more

Gaurav Singh Kopite ，

Nice little read 。。。 some of them had real humble beginnings。。

T。H ，

Pretty much an "interview book" with fund managers。 Don't read this book for valuation methodologies。 Pretty much an "interview book" with fund managers。 Don't read this book for valuation methodologies。 。。。more

Nihar Shah ，

Picked the book up as I was interested in reading about some of the non American investors covered。 However overall found the details in the book underwhelming。

Yuriy ，

Well-written， accurate and absorbing book

Diego ，

Good book specially for who interesting in investment in stock market。 Not for trader

Loh ，

The purpose of this book isn't meant to instruct us about the in's and out's of value investing。 Rather， Ronald Chan seeks to pool together 12 of the （most） successful value investors together in a brief and concise format for us to identify similar commonalities and traits which we ourselves can emulate - and for this reason alone， Ronald Chan has exceeded my expectations， and hence， the 5 star rating。 I take the number of pages （or lack thereof） as an added bonus。 The purpose of this book isn't meant to instruct us about the in's and out's of value investing。 Rather， Ronald Chan seeks to pool together 12 of the （most） successful value investors together in a brief and concise format for us to identify similar commonalities and traits which we ourselves can emulate - and for this reason alone， Ronald Chan has exceeded my expectations， and hence， the 5 star rating。 I take the number of pages （or lack thereof） as an added bonus。 。。。more

Brentley Campbell ，

A great overview of the lives of many of the world's greatest value practitioners。 Highly readable an gives a great perspective on finding value all over the world。 A great overview of the lives of many of the world's greatest value practitioners。 Highly readable an gives a great perspective on finding value all over the world。 。。。more

Javier ，

I really enjoyed this book。 It talked about 12 different money managers who practice value investing in America， Europe and Asia。 I was surprised to see that these money managers had different views on investment holding periods; diversification vs concentration; small-cap， mid-cap or blue chips; focusing on American stocks， emerging markets， etc; and they still manage to beat the market。 Among their common denominators: a margin of safety， patience， humility， not following the crowd， and avoidi I really enjoyed this book。 It talked about 12 different money managers who practice value investing in America， Europe and Asia。 I was surprised to see that these money managers had different views on investment holding periods; diversification vs concentration; small-cap， mid-cap or blue chips; focusing on American stocks， emerging markets， etc; and they still manage to beat the market。 Among their common denominators: a margin of safety， patience， humility， not following the crowd， and avoiding losing money over obtaining big returns。 。。。more

Tirath ，

A good compilation of investors。 Some are worth reading about and some are not。 Some are true value investors， others are pseudo-investors but more fund managers。 The book does provide an interesting breadth of investors from across the world。 Good chapters are those on Tweedy Browne， Jean-Marie Eveillard - Value investors have to accept that they will definitely be short term underperformers， which causes psychological and financial suffering - there is no immediate gratification with value inv A good compilation of investors。 Some are worth reading about and some are not。 Some are true value investors， others are pseudo-investors but more fund managers。 The book does provide an interesting breadth of investors from across the world。 Good chapters are those on Tweedy Browne， Jean-Marie Eveillard - Value investors have to accept that they will definitely be short term underperformers， which causes psychological and financial suffering - there is no immediate gratification with value investingValue Partners GroupThe book isn't a gripper， but provides good insight into how value investors across the world and across generations look at value investing。 Quite an interesting book。 。。。more

Frank ，

A collection of superficial snapshots of a dozen or so value investors。 Its only redeeming feature is that it includes many international value investors that would be less well known to a North American audience。The author allowed the investors to resort to cliches too frequently， and really didn't do a good job of extracting useful information from them。 Overall， it was just ok。 A collection of superficial snapshots of a dozen or so value investors。 Its only redeeming feature is that it includes many international value investors that would be less well known to a North American audience。The author allowed the investors to resort to cliches too frequently， and really didn't do a good job of extracting useful information from them。 Overall， it was just ok。 。。。more

C ，

ถ้าคุณคิดจะใส่ไข่ทั้งหมด ไว้ในตะกร้าใบเดียวแบบบัฟเฟต์แล้วละก้ผมขอเตือนคุณไว้อย่างว่า วอร์เรน เป็นคนที่คาดการณ์ธุรกิจเก่ง และ แม่นยำมาก ผมสบายใจกว่าที่จะกระจายความเสี่ยง โดยการถือหุ้นเป็นร้อย ๆ ตัว - Walter J。 Schloss

Wee Lip ，

Last chapter provides a good summary of the book。 Not a first book in value investing。 Nevertheless， there are useful insights and snippets。

Rohan Pinto ，

Wish this was more detailed， its bit superficial。。 The varied investor profiles was a plus。 overall a good book for a novice （to be） investors。

Jeff Kelleher ，

This trifle of a book by a young Hong Kong fund manager consists of capsule biographies drawn from interviews with twelve "value" investors。 "Value" is not defined， but it is clear the author means what most would understand by the term: bottom-up fundamentalist appraisal， company-by-company。The book is scattered with arresting homilies， but they do not amount to， and are not intended to be， comprehensive investment advice。 Rather， the premise is that "temperament" is "what distinguishes the fai This trifle of a book by a young Hong Kong fund manager consists of capsule biographies drawn from interviews with twelve "value" investors。 "Value" is not defined， but it is clear the author means what most would understand by the term: bottom-up fundamentalist appraisal， company-by-company。The book is scattered with arresting homilies， but they do not amount to， and are not intended to be， comprehensive investment advice。 Rather， the premise is that "temperament" is "what distinguishes the fair-to-good investor from the good-to-great one。" To illuminate temperament， the author "focuses on how life encounters and experiences。。。affect a person's investment mind-set。。。。"The twelve are of course different from each other， but there seem to be some common themes。 The best temperament arises from growing up poor or working class; being the son of immigrants; having worked in the trenches in either front-line business or the securities business， especially in such roles as comptroller， accountant， or stock analyst; having intersected with Benjamin Graham， Warren Buffett， or one of their disciples; and being endlessly curious about the world at large。 Educational attainment is secondary。 There is not an Ivy-Leaguer in the bunch， and only one MBA and one Ph。D。 Some never went to college。Worth a couple of hours， not more。 。。。more

Brian Zheng ，

A great book to learn about different styles from successful value investors around the globe。 Although there have been quite a few such books around， most notably the "Market wizards" series， they tend to focus on the investors in the US。 This is the first book I read with a good coverage of European and Asian investors。 In Asia， the book covered a few well-known names in the industry， including Target Asset Management in Singapore， Value Partners Group in Hong Kong and SPARX Group in Japan。 A great book to learn about different styles from successful value investors around the globe。 Although there have been quite a few such books around， most notably the "Market wizards" series， they tend to focus on the investors in the US。 This is the first book I read with a good coverage of European and Asian investors。 In Asia， the book covered a few well-known names in the industry， including Target Asset Management in Singapore， Value Partners Group in Hong Kong and SPARX Group in Japan。 。。。more

Reference

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The British Library https://bll01.primo.exlibrisgroup.com/discovery/search?query=any,contains,The Value Investors: Lessons from the World's Top Fund Managers&tab=LibraryCatalog&search_scope=Not_BL_Suppress&vid=44BL_INST:BLL01&lang=en&offset=0