The Quest for Value: A Guide for Senior Managers

This book is an excellent reference for applying EVA or value-based management. Recommended.

This book covers information that even financial professionals who have been in the business for decades do not know or understand. It has become my "bible" when it comes to financial concepts. I reference it constantly. It is not a book on investment philosophy (not like value investing or technical analysis, or anything like that) but a book on financial concepts. Even though the book is now over 20 years old and the concepts are nothing new, the concepts discussed are still so unique and insightful because they are ignored by so many on Wall Street, despite being so clear and logical. None of the concepts exclusively apply to investing in public markets. I highly recommend this read for both lay and professional investors, small business owners, start-up CEOs, and executives of public companies. For investors, I recommend reading it in tandem with books on value investing (e.g. Ben Graham, Warren buffet, etc).

This is one of the best books about EVA. Good explainations. This book goes beyond the GAAP and does a more accurate measurement of corporate profitability and efficiency. Highly recommended for accountants and investors alike!!

After getting my MBA 1995, I have read so many books discussing about value and investment, I recommend, however, that The Quest For Value is the one you must read. The reasons:First, few books put the two topics (value, investment) in one theoretical system. Even the books or articles about "value investment" can be separated into two categories: these about "investment art", talking about, or written by investment experts (who's names on the Money Master and New Money Master); the other about the "valuation scientific methods". People talked about value investment ideas by totally separated way, the art, or the science.Second, too many books discuss value investment by this way: "it is the one... (maybe earning, or cash flow, or working capital,) but..., or, if....,". So the investor become a boxer, who need professional speed and energy to quickly switch his positions and punch among the keep coming "but", "if" from either accounting or reality. Contrary to my boxer's inspiration, my best friend in business school told me: "Warren Buffett must have one secret point he never told anybody". I think the secret he means is what is "one dollar", and what is "forty cents", if buy low sell high is the plan. Haven't our two foolish business school students told you everything about the "modern" market efficiency and inefficiency theories?! I know value investment masters will feel sad for this kind of coming value investment young villagers. Anyway, besides the "professional strong" and the "superstition power" from the point of ours, is there a rational point to support the leverage of investment art.The third, value investment is always about two aspects: the business and the management. From Fillip Fish's buy and hold sticky strategy to Peter Lnych's traveling and talking around the world, to Warren Buffet's appreciation: "he (the CEO) is this kind of person, you can marry your daughter to him", investment is about to invest, or to marry with, the management team. But, we need the handsome's picture.The Fourth, what kind of morality standards fits Wall Street's social position. Probably, people don't have time to talk about good or bad, when the regulation of a game is win or loss. However, if you are playing NBA, your morality, personality, even image are kind of money at least, aren't they? Even you just doing exercise in your backyard, at least don't forget another possibility: win-win.If you have this kind of questions, you must read this book. The author's capital efficiency view and five categories of business accordingly put the "value" and the "investment" two topics into one system to discuss.And, The Economic Value Added (EVA) investment method is independent from the any accounting system. The accounting system as a standard record of business activities is only an object of study, criticize or judgment for investment decision but not a constriction of decision mine field. Contrary to "but" "if" talking, this book puts everything on this way: it is the one (EVA), so you should....Additionally, to look for a good management maybe, for investor, can become to create of good management teams. This topic you can read EVA and Value-Based Management by Mr. Young and O'Byrne for further study.Finally, the meaning of investment probably is not just NBA's win or loss. It is about to add or to damage (or even worse, to steal maybe) the social wealth according to EVA theory.Interesting? Plus the author's good logic and good case study! The only lack of this book to me is that the Capitan Case only has one. After finishing the Capitan Case at the end of the book, I wish there were other four cases for the other four categories of business accordingly (If you know where I can read that, please let me know...).There already been so many, so different opinions about this book on this site. While, if investment is art, according to Peter Lynch, or is a project, according to Charles Ellis, then any theory or method is just a kind of tool or weapon. So it will depend on the person, so it will depend on everything. I myself start the second reading after the first. I am going back to Main China pretty soon to do Investment Banking business, probably focus on LBO, and I will keep reading this book, talking about this book, and trying to imply this book. I think that I owe amzon.com a customer's view since I have got so much helps from others' views, so I recommend this book to you: If you have been so patient to read my view to here, you need read that book. Good Luck :)

I read this book my senior year in undergrad as part of my finance curriculum in 2010. Now with 4 years as a finance professional, I still find myself referencing this book's most useful insights, which in my opinion is the idea that a business truly does have an "economic" value that is far more important than the book value.When it comes to practical business valuation methodologies, especially when you consider what forms are the norm around different industries, it can be quite challenging as some other reviewers may have mentioned. Nonetheless, I have used and continue to use the concepts for comparative purposes when examining my own personal investment holdings.I would encourage any business professional to read this book, as the main point really is that EPS is crap. You need to really think about how business decisions affect the EVA of your company. Focusing purely on cash flow, while truly important no doubt, is short-sighted. Blending the two brings you closer to the bulls eye if you want to know your company's worth - or increase the company's value.

... but the ISBN and description are for the 1991 edition, which is exactly what you'll get. Big difference!

When selling, it is easy to fall into the trap of talking price or comparing yourself to your competitors. The Quest for Value illustrates how you can quantify delivering value to your clients. Listen to their needs and use your product or service to deliver a solution for those needs. You can use EVA as a method to define the solution for your customers by quantifying the benefit. You will earn your client's respect without having to lower price or fall into roadblocks set by your competitors.

The Quest for Value is the best modern financial text available today and certainly the best written since Benjamin Graham's Security Analysis. I teach the Quest for Value to graduate students at the University of St. Thomas in Minneapolis and manage FalkerInvestments, an investment firm specializing in EVA investments. The Quest for Value is our financial bible.A few tips in reading this excellent book. Read the Preface by Joel Stern and Chapter 1, the introduction; then skip to Chapter 12 which deals with the best discussion of the concepts of cost of capital available today. Then read chapters 2 and 3 and select the following chapters based on what interests you.This book appeals to business readers at all levels, so those with less experience should not get bogged down in some of the more sophisticated areas of the book. In other words, it can be read selectively for content.