Deep Value: Why Activist Investors and Other Contrarians Battle for Control of Losing
Corporations
is a must-read exploration of deep value investment strategy, describing the evolution
of the theories of valuation and shareholder activism from Graham to Icahn and beyond. The
book combines engaging anecdotes with industry research to illustrate the principles and
methods of this complex strategy, and explains the reasoning behind seemingly
incomprehensible activist maneuvers. Written by an active value investor, Deep Value
provides an insider's perspective on shareholder activist strategies in a format
accessible to both professional investors and laypeople.
The Deep Value investment philosophy as described by Graham initially identified
targets by their discount to liquidation value. This approach was extremely effective, but
those opportunities are few and far between in the modern market, forcing activists to
adapt. Current activists assess value from a much broader palate, and exploit a much wider
range of tools to achieve their goals. Deep Value enumerates and expands upon the
resources and strategies available to value investors today, and describes how the
economic climate is allowing value investing to re-emerge. Topics include:
- Target identification, and determining the most advantageous ends
- Strategies and tactics of effective activism
- Unseating management and fomenting change
- Eyeing conditions for the next M&A boom
Chapter 1 The Icahn Manifesto 1
Chapter 2 Contrarians at the Gate 19
Chapter 3 Warren Buffett: Liquidator to Operator 35
Chapter 4 The Acquirer's Multiple 53
Chapter 5 A Clockwork Market 77
Chapter 6 Trading in Glamour: The Conglomerate Era 99
Chapter 7 Catch a Falling Knife 119
Chapter 8 The Art of the Corporate Raid 151
Chapter 9 How Hannibal Profits From His Victories 169
Chapter 10 Applied Deep Value 187
Index 217
240 pages, Hardcover