Overview

A comprehensive walkthrough of proven, practical approaches to investing and expert guidance on choosing the one that works in your situation In the revised third edition of Investment Philosophies,  Aswath Damodaran delivers a deep dive into a variety of investment philosophies, exploring the assumptions and beliefs that underlie each of them. You’ll explore the investment strategies that arise from each philosophy, as well as what you – as an investor – need to bring to the table to make the philosophy work in the real world. Rather than present one philosophy as the “one best” philosophy for all investors, the book presents a variety of choices, letting investors pick the one that best fits their personal beliefs about markets and personalities. This book covers a range investing schools of thought, from charting and technical analysis, often given short shrift in academia and practice, to market timing, with different stands of value and growth investing, as well as information-based trading and arbitrage. You’ll discover: The tools you need to understand portfolio management and the different approaches to investing that can reasonably be expected to lead to success The evidence in the data backing or working against different investment strategies. A guide to creating and managing a portfolio in contemporary markets Techniques to help you manage your investment strategies, and improve your odds for success In this new edition, explores alternative investing choices, from real estate, to gold, to cryptos, to venture capital and private equity the reason for their allure and growth, and the gaps between promise and performance. An essential resource that explores the gamut of reputable and proven investing philosophies, Investment Philosophies provides you with helpful online resources, tools, in-depth guidance, and a comprehensive strategy guide for everyone interested in selecting a practical, effective approach to investing that works for them.

Full Product Details

Author:   Aswath Damodaran (Stern School of Business, New York University)
Publisher:   John Wiley & Sons Inc
Imprint:   John Wiley & Sons Inc
Edition:   3rd edition
Dimensions:   Width: 16.30cm , Height: 5.60cm , Length: 23.40cm
Weight:   0.930kg
ISBN:  

9781394273218

ISBN 10:   1394273215
Pages:   704
Publication Date:   17 March 2026
Audience:   General/trade ,  General
Format:   Hardback
Publisher's Status:   Forthcoming
Availability:   Awaiting stock  

Table of Contents

Contents CHAPTER 1 Introduction 1 What Is an Investment Philosophy? 2 Why Do You Need an Investment Philosophy? 3 The Big Picture of Investing 4 Categorizing Investment Philosophies 7 Developing an Investment Philosophy 10 Conclusion 13 Exercises 14 CHAPTER 2 Upside and Downside—Understanding Risk 15 What Is Risk? 16 Risk Aversion: Measurement and Consequences 16 Equity Risk: Theory-based Models 17 Assessing Conventional Risk-and-return Models 33 Equity Risk: Alternative Measures 35 Equity Risk: Assessing the Field 46 Default Risk 48 Conclusion 51   Exercises 53 CHAPTER 3 Numbers Don’t Lie—or Do They? 55 The Basic Accounting Statements 56 Asset Measurement and Valuation 56 Measuring Financing Mix 65 Measuring Earnings and Profitability 73 Measuring Risk 81 Differences in Accounting Standards and Practices 88 Conclusion 91   Exercises 91 CHAPTER 4   Show Me the Money: The Basics of Valuation and Pricing 93   Intrinsic Value 94 Pricing or Relative Valuation 119 Valuing an Asset with Contingent Cash Flows (Options) 129 Conclusion 132 Exercises 132 CHAPTER 5   Many a Slip: Trading, Execution, and Taxes 135   The Trading Cost Drag 135   The Components of Trading Costs: Traded Financial Assets 137   Trading Costs with Nontraded Assets 156   Management of Trading Costs 158   Taxes 161   Conclusion 169   Exercises 170   CHAPTER 6   Too Good to Be True? Testing Investment Strategies 173 Why Does Market Efficiency Matter? 173   Efficient Markets: Definition and Implications 174   Behavioral Finance: The Challenge to Efficient Markets 181   A Skeptic’s Guide to Investment Strategies 214 Conclusion 216   Exercises 216     CHAPTER 7   Smoke and Mirrors? Price Patterns, Volume Charts, and Technical Analysis 219 Random Walks and Price Patterns 219   Empirical Evidence on Pricing Patterns 221   The Foundations of Technical Analysis 250   Technical Indicators and Charting Patterns 252   Social Media and Markets 265   Determinants of Success at Charting and Technical Analysis 269   Conclusion 271   Exercises 271     CHAPTER 8   From Graham to Private Equity: Value Investing 273   Who Is a Value Investor? 273   The Passive Screener 275   The Contrarian Value Investor 304   Activist Value Investing 312   Conclusion 334   Exercises 335   CHAPTER 9   The Allure of Growth: Small Cap and Growth Investing 337   Who Is a Growth Investor? 337   Proxy Growth Investing 338   Passive Growth Investing 358   Activist Growth Investing 379   Conclusion 392   Exercises 393 CHAPTER 10   Information Pays: Trading on News 395   Information and Prices 396   Trading on Private Information 398   Trading on Public Information 418   Implementing an Information-based Investment Strategy 440   Conclusion 441   Exercises 443   CHAPTER 11   A Sure Profit: The Essence of Arbitrage 445   The Essence of Arbitrage 445   Pure Arbitrage 447 Near Arbitrage 471 Speculative Arbitrage 485   Long/short Strategies—Hedge Funds 490   Conclusion 494   Exercises 496 CHAPTER 12   The Impossible Dream? Timing the Market 499   Market Timing: Payoff and Costs 499   Market timing Approaches 503   The Evidence on Market Timing 533   Market-timing Strategies 542   Market-timing Instruments 546   Connecting Market Timing to Security Selection 549   Conclusion 549   Exercises 550   CHAPTER 13   The Allure of Indexing 553 The Mechanics of Indexing 553 A History of Indexing 557 The Case for Indexing 560 Why Do Active Investors Not Perform Better? 584 Enhanced Index Funds 591 Conclusion 599 Exercises 599 CHAPTER 14   Investing in Alternatives 603   The Alternative Investment Universe 603   The Sales Pitch for Alternatives 607   Price and Value with Alternative Investments 611   Real Estate: The Underfollowed Investment Class 613   Collectibles 620   The Rise of Alternative Investing 648   Alternative Investment Philosophies 655   Conclusion 658   Exercises 658 CHAPTER 15   A Road Map to Choosing an Investment Philosophy 661   A Self-assessment 659   Finding an Investment Philosophy 665   The Right Investment Philosophy (Philosophies) 667   Conclusion 674   Exercises 675   Index 677         CHAPTER 

Reviews

Author Information

ASWATH DAMODARAN is a Professor of Finance at New York University’s Leonard N. Stern School of Business. He has received numerous awards for outstanding teaching, including the NYU university-wide Distinguished Teaching Award, was named one of the nation’s top business teachers by BusinessWeek in 1994, and teaches training courses in corporate finance and valuation at many leading investment banks.

Tab Content 6

Author Website:  

Countries Available

All regions