IN THE PREVIOUS CHAPTER I gave some background to the philosophy of deep value investing. In this chapter I hope to lay out a detailed summary of how exactly it works and what it practically involves. It differs from most people’s way of investing and it is important to get our heads around exactly how.
JUST THE FACTS
Firstly, deep value investing is much more concerned with the actual facts of a company than forward-looking announcements. This is because the former are largely based on reliable historic data, while the accuracy of the latter still has to be established. Deep value investing likes to deal with the facts as they exist. And it prefers to base all opinions on those facts.
Above all what ...