ValuFocus Investing: A Cash-Loving Contrarian Way to Invest in Stocks

Section Six

Advanced Topics for Practicing Professionals

Portfolio managers, security analysts, CFA charterholders, financial advisors, financial analysts, financial modelers, educators, and those eager to learn more:

We wrote this section on advanced topics for practicing professionals and those eager to learn more. It is written in a concise and technical style. It should be fun to read for those of you who love their trade and wish to consider potential improvements. We also want to encourage every individual investor reading this book to dig into these chapters. There is much here for you to add to what has been presented thus far.

This section answers questions often raised about the LCRT framework. We want to be as complete as possible—all in one place. This section, along with the one addressed to academics that follows, is specifically designed to add credibility to the LCRT framework from influential people in the profession. The LCRT framework includes paradigm-shifting theory, extensive supporting empirical research, and the ValuFocus practical application tool to make it all useable for individual investors.

Buying, selling, or shorting stocks ought to be simple. Buy stocks whose price is below their intrinsic value. Sell or short stocks whose price exceeds the intrinsic value. All the complexity ought to be under the hood—like driving a car.

Chapter 24:	Security Analysis and Modeling
Chapter 25:	Wealth Management
Chapter 26:	Portfolio Construction

Chapter ...