“A must read for all students of the financial markets . . . clear insight and spirited good humor [backed] up with cold hard facts.” —Seth Klarman, President, The Baupost Group LLC The seductive elegance of classical finance theory is powerful, yet value investing requires that we reject both the precepts of modern portfolio theory (MPT) and pretty much all of its tools and techniques. In this important new book, highly respected and controversial value investor and behavioral analyst James Montier explains how value investing is the only tried and tested method of delivering sustainable long-term returns. He shows you why everything you learnt at business school is wrong; how to think properly about valuation and risk; how to avoid the dangers of growth investing; how to be a contrarian; how to short stocks; how to avoid value traps; and how to hedge ignorance using cheap insurance. Value Investing provides the tools to start thinking in a different fashion about the way in which you invest, introducing ways of overriding the emotional distractions that bedevil the pursuit of a value approach and ultimately thinking and acting differently from the herd. “A leading light in value investing and behavioral finance . . . shows you what’s wrong with standard investment thinking and offers important insight into how to improve your process.” —Michael J. Mauboussin, Chief Investment Strategist at Legg Mason Capital Management, and author of Think Twice: Harnessing the Power of Counterintuition