Recommended Reading││The Source of Value Investing: "Stocks Undervalued Compared to Market Value Will Always Rise!"
Preface││Only investors who think and act differently from the crowd will survive!

PART Ⅰ: Everything Business School Teaches Is Wrong

Chapter 01
Break with the efficient market hypothesis
The Dead Parrot of Finance / The Queen of Hearts and the Impossible Belief / The Living Slaves of a Dead Economist / The Efficient Market Hypothesis's Obvious Falsehood, the Eternally Rising Bubble / The Efficient Market Hypothesis's Nuclear Bomb

Chapter 02
Abandon the capital asset pricing model.
History of the Efficient Market Hypothesis / Errors in the Capital Asset Pricing Model / Why the Capital Asset Pricing Model Fails / Current Status and Impact of the Capital Asset Pricing Model

Chapter 03
Blind faith in numbers and delusions of security
Bewildered by pseudoscience / Watching TV improves math skills / The state of finance / Numbers don't guarantee safety

Chapter 04
The risks of childish investment diversification
The Perils of Narrow Diversification / Common Stock Portfolios: Another Extreme / Relative Performance Competition: A Source of Poor Performance / A Brief, Practical Guide to Diversification

Chapter 05
Limitations of the Discounted Cash Flow Model
Problems with Cash Flow Estimation and Discount Rate Calculation / The Interaction Between Cash Flow Estimation and Discount Rate Calculation / Alternatives to Discounted Cash Flow Models

Chapter 06
Is value more dangerous than growth?
Risk indicator 1, standard deviation / Risk indicator 2, beta / Risk indicator 3, economic risk

Chapter 07
Deflation, Recession, and Value Investing
Value Investing During the Japanese Bubble Collapse / Value Investing During the Great Depression / Differences Between the Japanese Bubble Collapse and the Great Depression

PART Ⅱ Behavioral-Based Value Investing

Chapter 08
Love dogs and stay away from beauties
About Dogs and Popular Stocks / Analysts' Expected Growth Rates and Implied Growth Rates / Valuation / Overpaying for Growth Hopes: Mining Stocks

Chapter 09
The placebo effect of beauty
Painkillers, the Placebo Effect, and Price / Does Expensive Wine Taste Better? / The Case of Beauty / Breaking the Stereotypes

Chapter 10
Growth investments that will make you cry even in your sleep
8 Habits of Highly Successful Companies / Overvalued or Undervalued Stocks / Don't Be an Ugly Defendant / An Analyst's Perspective on Growth Stocks

Chapter 11
The Trinity of Risks Threatening Value Investing
Valuation Risk / Business, Earnings Risk / Balance Sheet, Financial Risk

Chapter 12
Invest with a proactive strategy
Emotional Gap / How to Avoid Emotional Gap and Procrastination / Stock Trading in Extreme Emotions / Performance Warning / Lock-in Strategy

Chapter 13
The Psychology of Bear Markets
Fear and the Bear Market / Fear and Time / The Cost of Losing Self-Control / Focus on the Present

Chapter 14
Things that hinder value investing
Knowledge-action discrepancy / loss aversion / delayed gratification and short-term bias / social pain and crowd psychology / bad storytelling / overconfidence / boredom

PART Ⅲ The Philosophy of Value Investing

Chapter 15
10 Principles for Value Investing
The Purpose of Investing / Principle 1: Value, value, value, always value is paramount / Principle 2: Be a contrarian / Principle 3: Be patient / Principle 4: Be unconstrained / Principle 5: Don't predict / Principle 6: Use cycles / Principle 7: Learn from the past / Principle 8: Be skeptical and skeptical again / Principle 9: Use both macro and micro approaches / Principle 10: Treat customers as you would like to be treated

Chapter 16
Gambling, Sports, and Investing
Psychology of Process, Outcome Bias / Psychology of Process, Outcome Accountability / Psychology of Process, Process Accountability

Chapter 17
Beware of Action Man
Goalkeeper as Action Man / Investors and Action Biases / Warren Buffett Waiting for Pat Fitch / Action Biases Behind Poor Performance

Chapter 18
Drop your optimism and become a skeptic.
Optimism Bias in Finance / The Sources of Optimism Bias / Skepticism: Resisting the Temptation of Optimism / Why Investing Should Be Evidence-Based / Gloomy Realism

Chapter 19
Simplify the investment decision-making process
Is more information better? / Keep it simple / The problem of diagnosing heart disease / The accuracy of information, not the amount of information / Simplifying the decision-making process / Experts focus on key information / Simplifying the investment decision-making process

Chapter 20
Ultimately, undervalued stocks are right.
Undervalued value stocks finally shine / Outdated value stocks / Poor short-term performance is a byproduct of the rational investment process / Will value stocks see the light at the end of the tunnel?

PART IV The Reality of Value Investing

Chapter 21
Is bond investing speculation?
Bonds in the Long Term / Bond Valuation / Fair and Actual Rates of Return / Inflation or Deflation?

Chapter 22
Dividend Swaps and Inflation Hedging
Dividend Swaps Are Cheaper Than During the Great Depression / Dividend Swaps as an Inflation Hedge / Emergency Selling and Oversupply

Chapter 23
Valuation of economic conditions and margin of safety
Margin of Safety: The Most Rational Risk Management Strategy / Empirical Evidence for Investing Based on Profitability / Using the Graham-Dodd P/E Ratio in Value Stock Screening

Chapter 24
The value created by a market crash
Volatility: Neither Unpredictable nor Unpredictable / The Birth of Value 1, The Bond Market / The Birth of Value 2, The Stock Market / The Birth of Value 3, Affordable Insurance

Chapter 25
Overcome the Curse of Value
Returns in the Most Expensive and Cheapest Markets / How Long Should You Be Patient and Hold On?

Chapter 26
Lessons from the Great Depression and Insurance for Safety
Irving Fisher's Debt Deflation Theory of the Great Depression / Christina Romer's Lessons from the Great Depression / Ben Bernanke's Policy Tools / Insurance for Safety in the Current Economic Situation

Chapter 27
There is no market where value investing cannot win.
A Macro Verification of the Graham-Dodd 10-Year P/E Ratio / A Micro Verification of Average Earnings

The source of value investing,
'Stocks that are cheap compared to their market value will definitely rise!'

Benjamin Graham said, "Value investing is inherently sound. If you stick to its principles and stick to them, you will never go down the wrong path."
When faced with investment questions, it's best to turn to Graham.

The author of this book, James Montier, is a prominent investment strategist who is a self-proclaimed avid fan of Benjamin Graham and a world-renowned behavioral finance scholar who lectures at Columbia University.
This book, written by adding his own insights to Graham's investment philosophy, is a must-read that I reread at least once every two to three years.
Personally, I was disappointed that it went out of print, but I am delighted that it has been republished, and I believe it is a great fortune for value investors in our country.

I believe that Graham's approach to value investing is highly advantageous for achieving high investment returns, as there are many stocks in our country's stock market that are significantly undervalued relative to their value.
The author of this book, drawing on this same belief, systematically organizes various investment targets and methods through extensive writings, papers, and meticulous data analysis, persuasively proving that value investing is the best investment method.

Principles and principles transcend time and space and still remain valid.
Although this book contains stories from 15 years ago, it conveys profound lessons without feeling dated at all.
By carefully combining psychology and analysis of the stock market and the behavior of market participants, we offer guidance for sound investors.

Investors with less experience will gain indirect experience through the author's teachings, while those with more experience will have the opportunity to reflect on their own real-world experiences and redefine their ideal investor mindset.

While its status in economics and the securities industry remains strong, its credibility has been significantly weakened (though its existence serves as a valuable asset for value investors). This paper thoroughly analyzes and addresses its problems.
Furthermore, using historical statistical data, we demonstrate that growth stocks carry greater risk but significantly outperform value stocks in terms of returns.

The author quotes two investment gurus: Sir John Templeton, who said, "The sole objective of any long-term investor is to maximize after-tax total return," and John Maynard Keynes, who said, "To earn a decent return on your money while minimizing the risk of a serious decline in its value." He then presents "10 Principles of Value Investing" that align with these investment objectives.
It could be called a "textbook on value investing," as it explains in detail why value investing is the best investment method, clearly showing "how to apply it" to actual investments.

A value investing philosophy that knows 'true value'!
James Montier's "The Value Investing Compass!"

A few years ago, Warren Buffett revealed that he still manages his personal finances according to Benjamin Graham's method.
As you read this book, you will fully appreciate the author's deep respect for Benjamin Graham, the "father of value investing."
Graham's teachings, permeating the author's sentences, are another delight that penetrates deeply into the heart.

With 41 years of investment experience, I believe that experience is more important than anything else in stock investing.
Just as history repeats itself, the stock market also experiences ups and downs, but because we believe that "in the long run, it will inevitably trend upward," we are not easily shaken even when the market declines significantly.
If you hold on, the market will eventually recover, and the prices of the stocks you hold will also recover and rise.
Only then, through countless experiences, have I learned that patience is rewarded.

During the 2008 financial crisis, I lost 41.1% on my stock investments.
But by just holding on silently, in 2010, just two years later, we were able to recover to a level that surpassed our losses.
It is the most memorable experience in my investment career.

At the time, the portfolio I was managing consisted of value stocks that were significantly undervalued compared to their intrinsic value, so I was able to wait patiently until the end.
The simple yet unshakable truth that "stocks that are cheap relative to their market value will inevitably rise" is the source of the faith that sustains us value investors.
For investors, reading is as important as practical experience.
Investors can gain two major benefits from reading this book.

① You can learn the investment principles and techniques revealed by investment experts.
You can choose a single method that suits your personality and follow it, or you can combine the wisdom of multiple masters to create your own unique investment style.

② It helps you endure the difficult times of market downturns that you inevitably experience during your investment journey.
We find comfort and courage to persevere through examples of investment gurus who have faced similar trials and overcome them.

This book is more than just a good book; it's worth keeping by your side and reading and reflecting on, just as Buffett kept Graham's book on his desk and always referred to it.

Meanwhile, the Korean stock market is in the process of resolving institutional issues that have weighed down its undervaluation, such as revisions to the Commercial Act and separate taxation of dividends.
The market has opened up, particularly for value investors, and we expect this trend to continue.
I have no doubt that this book, republished at the right time, will serve as a valuable guide not only for value investors but also for all stock investors.
- Sook-hyang, author of "Warren Buffett Next Door: Sook-hyang's Stock Investment Story"