Praise for New Era Value Investing “No other book reveals so much about how a portfolio manager looks at the world. You will see how the transformation in the U.S. economy and stock market in the 1990s caused this seasoned value investor to transform her investing discipline to keep pace with the times, and you will gain invaluable insight into how an investment discipline is crafted to maximize gain and control risk for real, paying clients. This book is a must-read for ever…
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For many years Geraldine Weiss has published a newsletter that identifies stocks trading in the upper range of their historic dividend yields. This method succesfully identifies undervalued stocks.
Tengler took this a step further, comparing stocks’ dividend yields to their historic relationship to the yield of the market as a whole. Like Weiss’ less sophisticated technique, stocks selected in such manner will, on average, outperform the market. She then goes on to ask and answer the question of how to apply a similar technique to stocks with little or no history of dividend payments. (Hence the “New Era” of the title). The answer is to employ the Relative Price to Sales Ratio.
It is easy enough to obtain price-to-sales ratios for individual stocks, which are routinely published in a number of sources. With a little work, an individual investor can then compare a PSR to the PSR of the market as a whole, obtaining the RPSR. But actual application of this technique requires that you obtain the entire range of RPSRs going back years, i.e. “construct the RPSR charts for each company.” (p.48). How is this done? The very next sentence tells the tale, in parentheses: “(This information is generally only available to institutional investors through services such as Compustat).”
Oh.
I feel much as I would had I bought some software through a mass market outlet only to find it runs only on an esoteric operating system used by the Department of Defense.
I won’t deny that the ancillary criteria used to winnow the complete universe of low RPSR stocks is of some value (hence the two stars instead of one), but that is like saying you bought a dictionary because you like the way it covers “X”, “Y” and “Z”.
“New Era Value Investing” is essentially marketing material aimed at convincing trustees for institutional funds to place those funds under Tengler’s management. If you are not responsible for investing millions of dollars of other people’s money, save your own and look for something better.
1.0 out of 5 stars
Article Stretched Into a Book
The book was okay. However, I thought the author threw in too much unnecessary information in order to keep the book from only being 30 pages long!
Don’t buy this book if you do not have access to historical monthly price-to-sales ratios. The author even admits about half-way through the book that non-institutional investors may not have access to this information. I searched all over the web looking for it and was not able to find it. The closest I could get was Ben Stein and Phil DeMuth’s website. And that is a quarterly, not monthly, ratio.
The checklist in the book as helpful, but if you really want to use the author’s methods, you must have access to historical monthly price-to-sales ratios.
5.0 out of 5 stars
Relying on Fundamentals – Back to Basics
One of the best and most informative pieces on fundamental investing. A well written, step by step overview of how to look at and analyze a company’s future prospects, while not…
Ms. Tengler has accomplished a feat that Graham and Dodd and other widely referenced deans of funadamental analysis have attempted to do for decades–making the art of analysis easily understood and interesting. Ms.Tengler, widely recognized media expert on the markets, has translated this difficult topic into very simple prose that even a lay investor can understand. At the same time, she provides enough additional valuable insight and explanations that market professionals would serve themselves well to read.
There is no question that this book will seve as a standard for the industry. It is highly recommended. The insight and information Ms. Tengler supplies serve as a foundation any market follower needs to become a savvy investor.
5.0 out of 5 stars
When All Else Fails – Go Back To Fundamentals
One of the best pieces on fundamental investing ever written. This is more than just a “story” about what an accomplished investor has done throughout her career.
5.0 out of 5 stars
Amazing insight into market inner workings
I am a professional investor and have read most books on the market. This book is in a category with the Bible–Graham and Dodd’s.
5.0 out of 5 stars
Very informative and a “must read” for investors!!
I have been in the investment business for 3 decades. Currently, I manage a large portfolio. My educatiuon and training is extensive but nothing compares to experience.
5.0 out of 5 stars
Value investing made accessible
An excellent companion to such classics Dodd’s Security Analysis and Graham’s The Intelligent Investor.
5.0 out of 5 stars
Ms. Tengler makes boring analysis interesting!
I studied finance in college and in graduate school I majored in investments. Unfortunately, all the book in the curriculum were dry and uninteresting.