Part 04: Value Investing
Chapters 28–41 · Graham, Buffett, DCF, value traps, special situations
Practice Lab (Hands-On)
| Resource | Description |
|---|---|
| 00-practice-lab | Diagrams, Indian market examples, 13+ practice questions with answer key |
| assets/diagrams | SVG visuals used across this part |
| 00-printable-worksheet.html | Print-friendly worksheet — Ctrl+P to save as PDF |
Complete the Practice Lab after finishing all chapters in this part.
Chapters in this Part
- 28-benjamin-graham-value-investing
- 29-margin-of-safety
- 30-graham-number-formula
- 31-intrinsic-value
- 32-value-trap-recognition
- 33-dcf-valuation
- 34-contrarian-investing
- 35-capital-allocation
- 36-circle-of-competence
- 37-mr-market
- 38-quality-at-fair-price
- 39-market-cycles
- 40-value-trap-deep-dive
- 41-special-situations
Read in order for best learning flow.
Chapters
28Benjamin Graham — Defensive and Enterprising FrameworkExplain Graham's defensive vs enterprising investor framework Apply margin of safety and Mr. Market concepts to NSE/BSE screening Distinguish price what…29Margin of Safety — Price vs Intrinsic Value BufferExplain why the novice asks how high can the stock go? , the experienced investor asks how much downside is there? , and the professional analyst asks if…30Graham Number Formula — Fair Value CeilingExplain how the Graham Number combines EPS and BVPS to produce a conservative fair value — most useful for banking, financial, and asset rich companies;…31Intrinsic Value — DCF, Graham, and Asset MethodsExplain how market price changes daily while intrinsic value changes slowly — investors who understand this gap are not slaves to market emotion; this is…32Value Trap Recognition — Cheap but BrokenIdentify why the novice asks what is the P/E? , the experienced investor asks why is the P/E low? , and the professional analyst asks is the market wrong,…33DCF Valuation — Cash Flow to Intrinsic ValueExplain how DCF is the foundation of professional valuation — converting future cash flows to today's price; useful only with conservative inputs and…34Contrarian Investing — Fear, Crowd, and DisciplineExplain why the novice asks why is the share falling? , the experienced investor asks what caused the decline? , and the professional analyst asks is the…35Capital Allocation — Management Quality SignalExplain how management's most important responsibility is capital allocation — ROCE, reinvestment quality, dividend/buyback discipline, and acquisition…36Circle of Competence — Stay Inside What You KnowExplain how your circle of competence may be small — but knowing its boundaries is vital; information is not understanding; professional investors are…37Mr. Market — Price vs Value BehaviourExplain how Mr. Market offers opportunities daily — you need not follow him; understanding intrinsic value, margin of safety, contrarian investing, circle…38Quality at Fair Price — QARP FrameworkConnect how Buffett evolved Graham's deep value into quality investing — compounding happens first inside the business, then in the investor's portfolio;…39Market Cycles — Euphoria, Despair, and OpportunityExplain how market cycles are driven by the economy, interest rates, liquidity, earnings, and psychology — you cannot predict them but you can prepare;…40Value Trap Deep Dive — 5-Point ChecklistApply how a value trap is optical cheapness masking fundamental deterioration — ask why not what for valuation ratios; distinguish cyclical opportunity…41Special Situations — Spin-offs and RestructuringApply how special situations are event driven value unlocking — demergers, buybacks, rights issues, M&A, delisting, and spin offs create temporary…