After four decades spent ascending to the top of the investment management profession, the author of this book is today sought out by the world's leading value investors, and his client memos brim with insightful commentary and a time-tested, fundamental philosophy. Informed by the author's experience and study, this book explains the keys to successful investment and the pitfalls that can destroy capital or ruin a career. Utilizing passages from his memos to illustrate his ideas, the author teaches by example, detailing the development of an investment philosophy that fully acknowledges the c ... More

After four decades spent ascending to the top of the investment management profession, the author of this book is today sought out by the world's leading value investors, and his client memos brim with insightful commentary and a time-tested, fundamental philosophy. Informed by the author's experience and study, this book explains the keys to successful investment and the pitfalls that can destroy capital or ruin a career. Utilizing passages from his memos to illustrate his ideas, the author teaches by example, detailing the development of an investment philosophy that fully acknowledges the complexities of investing and the perils of the financial world. Brilliantly applying insight to today's volatile markets, the book offers a volume that is part memoir, part creed, with a number of broad takeaways. It expounds on such concepts as “second-level thinking,” the price/value relationship, patient opportunism, and defensive investing. The book provides valuable lessons for critical thinking, risk assessment, and investment strategy. Encouraging investors to be “contrarian,” it wisely judges market cycles and achieves returns through aggressive yet measured action. Which element is the most essential? Successful investing requires thoughtful attention to many separate aspects, and each of the book's subjects proves to be the most important thing.