The author outlines the rules behind the able management of investments by private individuals, banks, and institutional investors. These rules are examined within the perspective of each entity's goals and challenges.
Based on research results and on his own experience, the author demonstrates that shareholder value is usually being paid lip service. As far as investment results are concerned, there are serious risks associated to leveraging, near-sighted management, obsolescence of skills and dubious deals.
But there are also investment rules which, when observed, help in avoiding the slippery path which ends with investors losing their capital. To help in explaining these rules, the book outlines the way capital markets work, equity research is done, and risks associated to biases. It also pays attention to forces propelling economic growth - or downturn.
Growth is usually dictated by the customer, but the customer is influenced by market psychology, liquidity, volatility, and prospects of the product or financial instrument he contemplates to buy. Case studies on instruments in the book examine equities, interest rates and exchange rates. The text also analyzes the role played by hedge funds and their strategies, as well as risks associated to alternative investments.
* Explains the benefits provided by sound investment management
* Suggests ways and means to gain investor confidence
* Includes lessons which can be learned from the market bubble of the late 1990s, the long 2000-2003 market depression and the starting recovery in 2004
Performance Criteria and Quoted Equities:
Technical and Fundamental Analysis; Quantitative Criteria for Equity Performance; Transparency in Financial Statements and Reputational Risk; A Private Investor's Self-Protection; Execution Risk and Damage Control: Investors' Responsibility in Risk Management; Independent Equity Research and Risk Management; Volatility, Liquidity, Leverage, and Their Impact on Investments; Methods for Judging Quoted Equities; Case Studies in Investments: Case Studies on Equity Values; Parmalat: A Case Study on Leveraging Corporate Assets.
Since 1961, Dr Dimitris N. Chorafas has advised financial institutions and industrial corporations in strategic planning, risk management, computers and communications systems, and internal controls. A graduate of the University of California, Los Angeles, the University of Paris, and the Technical University of Athens, Dr Chorafas has been a Fulbright scholar. Financial institutions which have sought his assistance include the Union Bank of Switzerland, Bank Vontobel, CEDEL, the Bank of Scotland, Credit Agricole, Österreichische Länderbank (Bank Austria), First Austrian Bank, Commerzbank, Dresdner Bank, Mid-Med Bank, Demir Bank, Banca Nazionale dell'Agricoltura, Istituto Bancario Italiano, Credito Commerciale and Banca Provinciale Lombarda. Among multinational corporations Dr Chorafas has worked as consultant to top management, are: General Electric-Bull, Univac, Honeywell, Digital Equipment Corp, Olivetti, Nestlé, Omega, Italcementi, Italmobiliare, AEG-Telefunken, Olympia, Osram, Antar, Pechiney, the American Management Association and host of other client firms in Europe and the United States. Dr Chorafas has served on the faculty of the Catholic University of America and as visiting professor at Washington State University, George Washington University, University of Vermont, University of Florida, and Georgia Institute of Technology. Also, the University of Alberta, Ecole d'Etudes Industrielles de l'Université de Genève, and Technical University of Karlsruhe. More than 6,000 banking, industrial and government executives have participated in his seminars in the United States, England, Germany, other European countries, Asia and Latin America.