Valuing and Investing in Equities: CROCI: Cash Return on Capital Investment develops a common-sense framework for value investors. By distinguishing investors from speculators, it acknowledges the variety of styles and goals in the financial markets. After explaining the intuition behind due diligence, portfolio construction, and stock picking, it shows the reader how to perform these steps and how to evaluate their results. Francesco Curto illuminates the costs and opportunities afforded by valuation strategies, inflation, and bubbles, emphasizing their effects on each other within the CROCI framework. Balancing analytics with an engaging clarity, the book neatly describes a comprehensive, time-tested approach to investing. Annual returns from this investment approach demand everyone’s attention.
1. Introduction - p. xxiii 2. Chapter 1. Investment and valuation - p. 1 3. Section 1: CROCI on valuation - p. 8 4. Section 1. CROCI on valuation - p. 9 5. Chapter 2. Valuing non-financial companies - p. 11 6. Chapter 3. The analytical idiosyncrasies of banks - p. 39 7. Chapter 4. Stock picking based on economic fundamentals - p. 53 8. Section 2: CROCI on investing - p. 72 9. Section 2. CROCI on investing - p. 73 10. Chapter 5. The performance of economic value - p. 79 11. Chapter 6. Value investing and dividends - p. 95 12. Chapter 7. Diversified investments: CROCI real earnings weighted - p. 105 13. Chapter 8. Thematic investments – CROCI intellectual capital - p. 117 14. Section 3: Through the looking glass - p. 144 15. Section 3. Through the looking glass - p. 145 16. Chapter 9. Equities, inflation and valuation - p. 149 17. Chapter 10. Bubbles in equities - p. 171 18. Chapter 11. Odysseus on valuing and investing in equities - p. 183 19. Bibliography - p. 189 20. Index - p. 191
Valuing and Investing in Equities: CROCI: Cash Return on Capital Investment develops a common-sense framework for value investors. By distinguishing investors from speculators, it acknowledges the variety of styles and goals in the financial markets. After explaining the intuition behind due diligence, portfolio construction, and stock picking, it shows the reader how to perform these steps and how to evaluate their results. Francesco Curto illuminates the costs and opportunities afforded by valuation strategies, inflation, and bubbles, emphasizing their effects on each other within the CROCI framework. Balancing analytics with an engaging clarity, the book neatly describes a comprehensive, time-tested approach to investing. Annual returns from this investment approach demand everyone’s attention.
1. Introduction - p. xxiii 2. Chapter 1. Investment and valuation - p. 1 3. Section 1: CROCI on valuation - p. 8 4. Section 1. CROCI on valuation - p. 9 5. Chapter 2. Valuing non-financial companies - p. 11 6. Chapter 3. The analytical idiosyncrasies of banks - p. 39 7. Chapter 4. Stock picking based on economic fundamentals - p. 53 8. Section 2: CROCI on investing - p. 72 9. Section 2. CROCI on investing - p. 73 10. Chapter 5. The performance of economic value - p. 79 11. Chapter 6. Value investing and dividends - p. 95 12. Chapter 7. Diversified investments: CROCI real earnings weighted - p. 105 13. Chapter 8. Thematic investments – CROCI intellectual capital - p. 117 14. Section 3: Through the looking glass - p. 144 15. Section 3. Through the looking glass - p. 145 16. Chapter 9. Equities, inflation and valuation - p. 149 17. Chapter 10. Bubbles in equities - p. 171 18. Chapter 11. Odysseus on valuing and investing in equities - p. 183 19. Bibliography - p. 189 20. Index - p. 191
