It is required reading for any serious intrinsic value investor. It should be read carefully from cover to cover. It is a touchstone by which all statements pertaining to intrinsic valuation can be judged. . . The most authoritative book on investment valuation. The Theory of Investment Value is the only known book about the theory and practice of true, pure, intrinsic value investing.
True value refers to long-run economic value as opposed to accounting or market value.
Pure value refers to the absence of fallacious accretions such as market timing and beta coefficients. Intrinsic value refers to future cash flows generated by a company for its stockholders discounted to present value. The cases are timeless in method even though dated in specific data. The Theory of Investment Value still remains the most authoritative statement on both the theory and the practice of appraising the intrinsic economic value of investments. The theory states that the intrinsic ultimate long-term worth of a common stock is the present value of the discounted future net cash flows attributable to the common stock in the form of dividend distributions and future selling price.