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Invest Like a Dealmaker: Secrets from a Former Banking Insider (Agora Series) PDF

243 Pages·2008·1.42 MB·English
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IInnvveesstt LLiikkee AA DDeeaallmmaakkeerr Secrets from a Former Banking Insider CHRISTOPHER W. MAYER Foreword by Addison Wiggin John Wiley & Sons, Inc. ffffiirrss..iinndddd vv 1111//1166//0077 1100::3377::2211 AAMM ffffiirrss..iinndddd iiii 1111//1166//0077 1100::3377::2200 AAMM More Praise for Invest like a Dealmaker Chris Mayer is one of the few people in America who thinks deeply and originally about investing. The ideas in this book will enrich you and change your perspec- tive about investing forever. You’ll never look at a stock symbol in the same way. This is the complete guide to sophisticated, safe investing. —Porter Stansberry, founder, Stansberry & Associates Investment Research I’ve known Chris for years now. His new book has all the essential principles of investing, historical vignettes about curious characters and insights from all the great- est investing legends, tied up in an entertaining package that only someone as well- read as Chris could produce. In the last twenty years, I’ve read hundreds of financial books. Most weren’t worth the time it took to read the table of contents. You’ll want to read Invest Like a Dealmaker cover to cover and refer to it often. —Dan Ferris, editor, Extreme Value Chris Mayer has put together a wonderful compendium of investment wisdom. You’ll find the “usual suspects”—Warren Buffett, Jay Gould, George Soros, et al. But you’ll also learn from great investors you’ve never heard of, backed up with great research. Turn to just about any page and you’ll find something profound that will help you make more money in the markets. —Mark Tier, author, The Winning Investment Habits of Warren Buffett & George Soros This excellent book by Chris Mayer, an accomplished securities analyst, can be read in three hours. But it contains so many interesting observations supported by the investment knowledge of some of the world’s most successful value investors that every reader will gain insights that will serve him well for the rest of his life! —Marc Faber, editor, the Gloom Boom & Doom Report Chris Mayer has done a nice job of explaining and illustrating how and why a com- pany (and its stock) can be valued differently by people who simply view it through different perspectives. His book is a useful addition to the library on investing. —Ron Muhlenkamp, president, Muhlenkamp & Company, Inc. ffffiirrss..iinndddd ii 1111//1166//0077 1100::3377::1199 AAMM ffffiirrss..iinndddd iiii 1111//1166//0077 1100::3377::2200 AAMM iinnvveesstt lliikkee aa ddeeaallmmaakkeerr ffffiirrss..iinndddd iiiiii 1111//1166//0077 1100::3377::2200 AAMM ffffiirrss..iinndddd iivv 1111//1166//0077 1100::3377::2211 AAMM IInnvveesstt LLiikkee AA DDeeaallmmaakkeerr Secrets from a Former Banking Insider CHRISTOPHER W. MAYER Foreword by Addison Wiggin John Wiley & Sons, Inc. ffffiirrss..iinndddd vv 1111//1166//0077 1100::3377::2211 AAMM Copyright © 2008 by Christopher W. Mayer. All rights reserved. Published by John Wiley & Sons, Inc., Hoboken, New Jersey. Published simultaneously in Canada. Wiley Bicentennial Logo: Richard J. Pacifico Quoted material from interview with Martin Whitman reprinted from “Value at Risk,” by James Grant, Grant’s Interest Rate Observer 24, no. 21 (November 23, 2006). Reprinted with permission of Grant’s, copyright 2007. No part of this publication may be reproduced, stored in a retrieval system, or t ransmitted in any form or by any means, electronic, mechanical, photocopying, recording, scanning, or otherwise, except as permitted under Section 107 or 108 of the 1976 United States Copyright Act, without either the prior written permission of the Publisher, or authoriza- tion through payment of the appropriate per-copy fee to the Copyright C learance Center, Inc., 222 Rosewood Drive, Danvers, MA 01923, (978) 750-8400, fax (978) 646-8600, or on the Web at www.copyright.com. Requests to the P ublisher for permission should be addressed to the Permissions Department, John Wiley & Sons, Inc., 111 River Street, Hoboken, NJ 07030, (201) 748-6011, fax (201) 748-6008, or online at http://www .wiley.com/go/permissions. Limit of Liability/Disclaimer of Warranty: While the publisher and author have used their best efforts in preparing this book, they make no representations or warranties with respect to the accuracy or completeness of the contents of this book and spe- cifically disclaim any implied warranties of merchantability or f itness for a particular purpose. No warranty may be created or extended by sales r epresentatives or written sales materials. The advice and strategies contained herein may not be suitable for your situation. You should consult with a professional where appropriate. Neither the pub- lisher nor author shall be liable for any loss of profit or any other commercial damages, including but not limited to special, incidental, consequential, or other damages. For general information on our other products and services or for technical support, please contact our Customer Care Department within the United States at (800) 762-2974, outside the United States at (317) 572-3993 or fax (317) 572-4002. Wiley also publishes its books in a variety of electronic formats. Some content that appears in print may not be available in electronic formats. For more information about Wiley products, visit our Web site at www.wiley.com. Library of Congress Cataloging-in-Publication Data: Mayer, Christopher W., 1972- Invest like a dealmaker : secrets from a former banking insider/ by Christopher W. Mayer. p. cm. Includes bibliographical references and index. ISBN 978-0-470-18091-4 (cloth) 1. Stocks. 2. Corporations—valuation. 3. Portfolio management. 4. Investments. I. Title. HG4661.M375 2008 332.63'22—dc22 2007034460 Printed in the United States of America. 10 9 8 7 6 5 4 3 2 1 ffffiirrss..iinndddd vvii 1111//1166//0077 1100::3377::2211 AAMM CCOONNTTEENNTTSS Foreword ix Acknowledgments xv CHAPTER 1: A Tale of Two Markets 1 CHAPTER 2: T he Dealmaker’s Toolbox 29 CHAPTER 3: Creating Wealth—Or What Makes Stocks Rise 55 CHAPTER 4: Hunting Grounds 69 CHAPTER 5: T he Cracks and Crevices of Investment Wisdom 105 CHAPTER 6: W hen to Sell 161 CHAPTER 7: On Doing the Wrong Thing 169 CHAPTER 8: Small Questions, Big Opportunities 197 Notes 203 Index 211 vii ffttoocc..iinndddd vviiii 1111//1166//0077 1100::3377::5500 AAMM

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Invest Like a Dealmaker outlines an approach to investing that is far removed from what most investors have been conditioned to believe, but which has produced consistent profits for its practitioners decade after decade. While the concepts covered are not well known by the average investor, they ar
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