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Deep Value Investing

Finding bargain shares with BIG potential

By Jeroen Bos

Paperback £29.99 / $39.99
eBook £27.99 / $34.99
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Deep Value Investing

Finding bargain shares with BIG potential

By Jeroen Bos

Jacket text

UPDATED & EXTENDED 2ND EDITION – with a brand-new foreword by Merryn Somerset Webb

Let the market come to you

Deep Value Investing by Jeroen Bos is an incredibly candid and revealing guide to the secrets of deep value investment. Written by an investor with a long and remarkable track record, it shares for the first time the ins and outs of finding high-potential undervalued stocks before anyone else.

Deep value investing means finding companies that are genuine bargains that can pay back phenomenally over the long term. They are firms so cheap that even if they were to close tomorrow their assets would pay you out at a profit. But if they can turn things around, the rewards will be many times greater …

These were the favourite shares of Benjamin Graham, author of The Intelligent Investor. Inspired by Graham’s classic and with a long history of discovering these great value stocks – sometimes known as ‘bargain issues’ or ‘netnets’ – author and investor Jeroen Bos reveals:

– how to use only publicly available information to discover these shares and filter the gold from the dross

– everything he did when analysing, purchasing, monitoring and selling more than ten recent successful deep value investments

– the complete philosophy behind deep value investing, and the ins and outs of this strategy in practice

– what can go wrong and how to minimise the chances of it happening to you.

Deep value investing has a better track record than almost any other approach to the market. Even better, it doesn’t require minute and technical knowledge of a company, nor is it fixated on earnings or often-unreliable future projections.

It’s all about the balance sheet and patience. This makes it the perfect investing approach for those who want to see phenomenal stock market returns without wasting time or commission costs.

About the author

Dutch investor Jeroen Bos has lived in England since 1978. He has a diploma in Economics from Sussex University and has worked his entire career in the financial services industry, mainly in the City of London. He worked for many years at Panmure Gordon & Co, the stockbroker, and it was here that his interest in value investing developed. This process accelerated after the October 1987 stock market crash, during which time he took inspiration from The Intelligent Investor by Benjamin Graham.

At the end of 2003 Jeroen joined Church House Investment Management to manage CH Deep Value (Bahamas), which in March 2012 became the CH Deep Value Investments Fund.

He lives in Sussex, is married and has three sons.

Reviews

With the publication of Deep Value Investing, J Bos has joined a very select group made up of investors turned authors turned teachers. Deep Value investing is not your average book about value investing. No generalities here, no theories, no big words. But facts, very clear principles and how to implement them example after example. This book has not been written to entertain the reader nor to make him dream about becoming rich through using some abstruse formulae or techniques. Everything in this book is easy to understand, down to earth and replicable. But at a cost: one has to work and work hard in order to put to good use Jeroen Bos’ manual. One has to go after the raw materials of financial accounts and statements and dig underneath in order to, on rare occasions, be fortunate enough to pick the deeply undervalued investment opportunities. The Intelligent Investor by Benjamin Graham remains a reference in the field, but the required reading list for value investors is now one title longer since J Bos’ Deep Value Investing publication.

David Pastel, Chairman and CEO, Pastel & Associés, Paris

Deep Value Investing – Finding Bargain Shares with Big Potential is a well-written, hands-on book about how to extract value from investments made from a niche in the stock market. It is many years ago that Benjamin Graham came up with the thesis of buying net current asset stocks, or net-net stocks, which is to suppose that it is old fashioned and not to be done in today’s transparent markets. Jeroen Bos demonstrates that this is far from the truth. By writing a book, containing many real life examples Jeroen proves that by hard detailed work coupled with discipline it is still a vital strategy to apply today. By using examples, Jeroen not only gives the reader a better understanding of how to do this kind of low risk investing but also directly shows what to look for in identifying these net-net investments.

Ole Nielsen, Nielsen Capital Management

If you want to know how to make money by buying cheap companies, this book is a must.”

Philip Best, Argos Investment Managers

The message from this book is that you can keep investing simple, and may be most importantly, you do not have to be a City insider, or just plain lucky.

Zak Mir, Zaks Traders Cafe

…there is a lot of value in Deep Value Investing, especially today afer a period of underperformance.

Michael Wassermann, Strictly Value

Mr Bos has written a practical and very readable book that should appeal to those who are looking to learn more about this very particular style of investing. The examples are neatly interwoven with the lessons he has learnt over the years and the qualities required of a deep value investor.

FT Adviser’s Book of the Year 2013

I recommend it.

Richard Beddard, Interactive Investor

Deep Value investing is not for the faint hearted but Jeroen Bos is an expert practitioner. His book is clear, engaging and practical. It shines an expert light on this lucrative and little known investment niche. Frankly, as a fellow deep value investor looking for undiscovered bargains, I wish he hadn’t done quite such a good job of it.

Andrew Williamson, Hawkwood Capital LLP

Very well written, easy to understand and jargon free… the book probably will help in making you a better investor, and on that basis it is definitely worth an addition to any serious investor’s library.

Richard Gill, T1ps

Media coverage

From MoneyWeek:

You often hear that value investing is dead, particularly these days. Fund manager Jeroen Bos makes it very clear that this is not the case, as he discusses in detail, his methods, victories, and occasional mistakes, in this excellent, inspiring book. Armed with myriad case studies and genuinely useful, practical information, Bos makes it clear… Read more »

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From Financial Times:

Look to the past and you will see that the best-performing strategies over almost any longish period of time are value, momentum and small-caps. Take value. In his book Deep Value Investing (to which I wrote the foreword) Jeroen Bos chucks out some numbers. If you had put $10,000 into high price-earnings stocks at the… Read more »

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From Stocks & Commodities:

This book discusses finding high-potential, undervalued stocks. “Deep value investing” refers to finding companies that are bargains that can pay back multifold over the long term, and company stock that is cheap enough so that even if the company were to close the day after you bought it, its assets would still pay you out… Read more »

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From MoneyLife Radio:

“An easy read…”

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From Academia de Inversion:

“I really liked the structure of the book. 10% deep value investing and the other 90% investing cases, half of it with positive cases and the other half with negative cases. A perfect structure for an investing book.” Paco Lodeiro Amado reviews Deep Value Investing. The interview (in Italian) can be found here: Resumen del… Read more »

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From MoneyWeek:

Most investment guides focus on general principles, so the level of detail Bos goes into makes a refreshing change. In all, it is like being able to look over the shoulder of a fund manager while he makes his decisions… at almost £30, this book is excellent value.

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From MoneyWeek:

Bos, a fund manager by trade, uses the introduction and the first two chapters to explain what deep value investing is, how it differs from more conventional value strategies, and what he looks for when buying a share…. Each chapter explores the background of the company in question, his rationale for buying and what happened… Read more »

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From Your Money.com:

Investors should note that deep value investing is where you’re really looking at companies which are “horribly out of favour” though if the stocks can turn around, you can get some very good performance. For Jeroen Bos investment director at Church House Investment Management, and lead fund manager of the CH Deep Value Investments fund,… Read more »

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From ZakMir.com:

…. Rather gratifyingly you do not need to be a nuclear physicist or perhaps more appropriately, an expert in algebra to apply what Mr Bos does in order to glean the value situations…. Bos tells us where to look in Deep Value Investing, and for this his readers will be thankful, and in many case… Read more »

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Contents

About the author
Foreword to the 2nd Edition by Merryn Somerset Webb
Foreword to the 1st Edition By Michael van Biema
Preface to the 2nd edition
Preface to the 1st edition

Introduction: Being a Deep Value Investor
What you can get out of this book
Finding friendless companies
Teaming up with a super investor
A sweet pick

Part I. The Deep Value Philosophy

1. Deep Value Investing
A neglected method
Bargain issues: true deep value
Benjamin Graham and bargain issues

2. How Deep Value Investing Works
Just the facts
Assets not earnings
Cyclical services shares
A note on comparing stocks
Holding on for the ride
The rest of the book

Part II. Deep Value Successes

3. Spring Group
Company background
Investment case
Outcome

4. Moss Bros
Company background
Investment case
Outcome

5. ArmorGroup International
Company background
Investment case
Outcome

6. Morson Group
Company background
Investment case
Outcome

7. Harvard International
Company background
Investment case
Outcome

8. Velosi
Company background
Investment case
Outcome

9. B.P. Marsh & Partners
Company background
Investment case
Outcome

Part III. Deep Value Failures

10. RAB Capital
Company background
Investment case
Outcome

11. Abbeycrest
Company background
Investment case
Outcome

Part IV. Deep Value Shares of Tomorrow

12. Bloomsbury publishing
Company background
Investment case
Outcome

13. Barratt Developments
Company background
Non-investment case
The waiting game
Investment case
Outcome

14. Gleeson (MJ) Group
Company background
Investment case
Outcome

15. French Connection
Company background
Investment case
Outcome
A work in progress

16. Norcon
Company background
Investment case
Outcome

17. Record
Company background
Investment case
A changing model
Outcome

Part V. All-New Deep Value Case Studies

18. Panmure Gordon & Co. Plc

19. Enteq Upstream.

20. Hargreaves Services.

21. Lamprell Plc.

22. Sanshin Electronics Co, Ltd.

23. Hydrogen Group Plc.

Epilogue
Acknowledgements



Published: 15/01/2018
Edition: 2nd
Pages: 275
Formats: paperback - ISBN 9780857196613
ebook - ISBN 9780857196620
audio - ISBN 0000000000075
Media enquiries

If you’d like to get in touch with the author for interview or comment, or you’d like a review copy of this book, please contact us at pr@harriman-house.com or call +44 (0)1730 233870.

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