Make the smartest choices you can with this must-have read for investors by one of the world's legendary value investors World-renowned investor Francisco García Paramés shares his advice and tips on making smart investments in this must-have book for those looking to make smarter choices for their portfolio. Investing for the Long Term is divided in two parts. The first is formed by three chapters covering Francisco's education and first steps, his initial experience as an investor working alone, and the team work after 2003. This riveting section covers the end of the biggest bull market of the 20th century and the technological and financial crashes of 2000 and 2008. How the team dealt with all that is an interesting personal account that can help you deal with similar situations, should they occur. The second part of the book covers the cornerstones of Francisco's philosophy. It starts with a chapter in Austrian economics, in his view the only sensible approach to economics, which has helped him enormously over the years. It follows with an explanation of why one has to invest in real assets, and specifically in shares, to maintain the purchasing power of ones savings, avoiding paper money (fixed income) at all costs. The rest of the book shows how to invest in shares. Discover the amazing investing principles of one of the most successfully fund managers in the world Examine how one man and his company weathered the two of modern times’ biggest economic crashes Learn how to safely invest your savings Value investing and effective stock-picking underlie some of the world's most successful investment strategies, which is why Investing for the Long Term is a must-have read for all investors, young and old, who wish to improve their stock selection abilities.
Foreword ix Introduction xi PART ONE The Backstory CHAPTER 1 A Bit About My Early Years 3 CHAPTER 2 Going Solo (1991–2002) 25 CHAPTER 3 Investing as a Team (2003–2014) 57 PART TWO Theory: The Underpinnings of Investment CHAPTER 4 The Austrian School of Economics 111 CHAPTER 5 Investment 137 CHAPTER 6 Passive and/or Active Management 173 CHAPTER 7 Investing in Stocks (I): Foundations and Principles 195 CHAPTER 8 Investing in Stocks (II): Opportunities, Valuation, Management 217 CHAPTER 9 The Irrational Investor Lurking Within Us All 245 Conclusions and Future 267 Appendices Appendix I: 26 Small Ideas and One Guiding Principle 271 Appendix II: Reading Material and Wealth Creation 273 References 275 Further Reading 279 Index 283
FRANCISCO GARCÍA PARAMÉS is founder of Madrid-based Cobas Asset Management. Considered one of the leading value investors in Europe, his unique style of investing has returned exceptional results and earned him global notoriety. While an investment manager at Bestinver, his star rose to international acclaim as he gained a reputation as Spain's top fund manager by drawing 16 percent annually from markets for two decades. He's a self-taught investor who developed his own brand of asset management by combining the sensibilities of the Austrian business cycle theory with the principles of value investing, as practiced by such luminaries as Benjamin Graham, Warren Buffett and Peter Lynch.
The secrets to value investing— from a legendary investor Investing for the Long Term is the authoritative guidebook to the special brand of value investing that made Francisco García Paramés a global giant in the financial world. Packed with the practices and tips he uses every day to make profitable investments, this must-read volume is specifically designed to show you how to replicate his asset management style. Much more than a technical manual of tactics, this personal, strategic memoir details how influential thought leaders, hard choices and calculated risks shaped his management acumen and career. Then, in this real-world context, it provides a hands-on resource to turn to for: Insightful and refreshing explanations on how investors should consider passive, semi-passive and active investment Hard-won advice and proven approaches to determining the type of stocks to look for and how to efficiently find them Thought-provoking discussions on the psychological and social forces creating investment opportunities New fund managers and experienced ones alike can find game-changing enlightenment in Investing for the Long Term.
Thoughts and Reflections of One of the Most Influential Fund Managers in the World Known as the "Spanish Warren Buffett," Francisco García Paramés is one of the most respected investors in the world. As Bestinver's CIO, his clients obtained in Spanish equities an average annual return of almost 16% from 1990 to 2014, compared to 7.8% obtained by the General Index of the Madrid Stock Exchange. The returns achieved in global equities against its relevant benchmarks were similar. In this book, he tells us about his origins: his years as a student at the Complutense University of Madrid and the IESE in Barcelona when he was getting his MBA. There, he discovered his analytical skills, which together with his patient nature perfectly suited the requirements of value investing. A long-term investment school that he has never abandoned and that gave excellent results during the following two-and-a-half decades. In addition to his personal and professional experience, García Paramés explains the key elements of his investment process. First, he establishes the appropriate economic reference framework, in his case, the Austrian school. He comments on the authors who have influenced him the most. He talks about the differences between real assets and monetary assets, as well as passive, semi-active and active investment. He also explains what type of companies to look for and where to find them, while illustrating the ultimate source of opportunities: our emotions. This book is a must-read for any self-respecting investor and for anyone interested in knowing how the investment markets work.