New Era Value Investing: A Disciplined Approach to Buying Value and Growth Stocks

Nancy Tengler0471266086, 9780471266082, 9780471440208

A unique guide that combines the best of traditional value theory with an innovative approach to assessing value in low or non-dividend paying stocksIn the 1990s, America’s focus on productivity and innovation led to huge gains in technology, communication, and healthcare stocks, and contributed to the transformation of the U.S. stock market from a value (dividend-paying orientation) to a growth (nondividend-paying) bias. During this time, forward thinking value managers began to develop analytical tools for valuing nondividend paying stocks. These tools allowed them to evaluate and identify the best investments in both traditional and nontraditional value sectors. At the forefront of this movement was author Nancy Tengler who, along with Noel DeDora, developed “Relative Value Discipline,” an approach-which combines two proven methods for valuing growth stocks: Relative Dividend Yield and Relative-to-Price Sales. The combination of these approaches allows individuals to invest across the investment universe regardless of dividend policies. New Era Value Investing introduces the proven method known as Relative Value Discipline by combining the excitement of developing a new investment discipline with the lessons learned through the application of this new methodology in the real world. In addition to providing an insider’s look at an investment manager’s experience in adopting a new investment approach, this book creates a context for understanding the transformation of the U.S. economy, and offers expert insights beyond those of traditional value theory.

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Table of contents :
TeamLiB……Page 1
Cover……Page 2
Contents……Page 7
PREFACE……Page 11
ACKNOWLEDGMENTS……Page 17
CHAPTER 1 Is It Really ¡°Different¡± This Time?……Page 21
CHAPTER 2 A Short History of Fundamental Analysis and the Dividend……Page 33
CHAPTER 3 The Development of Relative Dividend Yield……Page 41
CHAPTER 4 The Challenges of the 1990s……Page 53
CHAPTER 5 The Twelve Fundamental Factors of RDY and RPSR Research……Page 71
CHAPTER 6 RDY Case Studies……Page 105
CHAPTER 7 RPSR Case Studies……Page 125
CHAPTER 8 Constructing a Value-Driven Portfolio……Page 149
CHAPTER 9 What Is Value Investing Today?……Page 165
CHAPTER 10 Seven Critical Lessons We Have Learned as Disciplined Investment Managers……Page 173
APPENDIX A New Era Value Composite……Page 185
APPENDIX B Estee Lauder¡ªTwelve Fundamental Factors:Estee Lauder Companies, Inc. Valuation Factors……Page 189
APPENDIX C EMC¡ªTwelve Fundamental Factors:EMC Valuation Factors……Page 201
APPENDIX D Walt Disney¡ªTwelve Fundamental Factors: The Walt Disney Company Valuation Factors……Page 217
INDEX……Page 235