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 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 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 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 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 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 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 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 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 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 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 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 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 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 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.