Saturday, October 06, 2007

Book Review: Active Value Investing

The book, Active Value Investing: Making Money in Range-Bound Markets (Wiley Finance), by Vitaliy N. Katsenelson, CFA, just come out. This a great book which covers how to invest and trade in a 'range-bound' market (a market that is not a bull market or a bear market). Katsenelson provides analysis and thorough research on why he believes that we will be in a range bound market for the next several years. Even if you disagree with him about his prediction of a ten year time frame of this sideways but volatile market, he gives extensive techniques for trading in this type of market.

Katsenelson provides much historical data and graphs, and writes in an easy to understand manner. Pages 193 through 200 covers where to find great investment ideas, much of which a lot of investors know, but is great to be reminded of. He also provides three important lessons of randomness, explaining how knowledge can reduce randomness. (Page 230)

If you are looking for a quality, valuation, and growth approach to investing in a range-bound market, this is the book for you.

By Fred Fuld at

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