Value Investing

Based on the Ben Graham or Warren Buffett approach to allocating capital, this exclusive program will teach the frameworks and processes of investing that some of the most successful investors in the world employ to manage and preserve capital.

Value investing focuses on the economic analysis and the valuation of the business operations of the firm with the aim of obtaining an estimate of its fundamental value. It calls to invest in the firm if the fundamental value is sufficiently above the market value so that there is a margin of safety to protect the investor against unforeseen contingencies. The approach is integrated, with the economic analysis of the business operations of the firm, and the valuation of those business operations inform and support each other. In this way, the value investor obtains a coherent view of the firm.

With unmatched access to Wall Street, renowned finance and accounting divisions, and the Heilbrunn Center for Graham and Dodd Investing resources, Columbia Business School is the only school to offer this unparalleled program in investing.

Please contact our Learning Solutions Specialists at +1 212-854-3395 for a personal conversation to learn more.

Participants in Value Investing are exposed to an intense introduction to value investing, taught by thought leaders in the field. You'll walk away with a coherent view of investing, one that integrates a sound understanding of the economics of the business operation of the firm, a robust valuation approach, and a toolbox of risk management techniques beyond mindless diversification.

Hear from Faculty Director Tano Santos on What Distinguishes the Value Investing Approach

"The valuation approach in value investing differs from DCF-like calculations that are standard in the industry. While correct, the DCF method is both difficult to implement and tries to do “too much.” It starts by positing a model of the dynamics of cash flows. These cash-flows, properly discounted, are then added up to provide an estimate of the value of the firm. Operationally, these models typically start with an assumption regarding the rate of growth of earnings and the payout policy of the firm. DCF models are notoriously unreliable and moreover unnecessary in most situations.

In contrast, the value investing approach starts with the economics of the firms and in particular with the competitive position of the firm in the industry in which it operates. Assumptions on the rate of growth of earnings are needed if and only if the business operations of the firm are protected by barriers to entry. Otherwise, we can simply forget about modeling (real) earnings growth for the simple reason that there is none. In that case, an investor should not be willing to pay for any growth option, just for the existing operations of the firm. This is the earnings power value calculation. But how does the valuation support that conclusion: because if the business operations of the firm are not protected by barriers to entry, the asset value of the firms should be equal to the earnings power value."

—Tano Santos, David L. and Elise M. Dodd Professor of Finance at Columbia Business School

Upon completion of this program, you will earn three credits towards a Certificate with select alumni and tuition benefits. Learn more.

The Value Investing program familiarizes you with the principles and techniques of value investing through a combination of formal lectures and in-class valuation discussions.

Hands-On Tools and Exercises

A key component of the value investing process is the assessment of the existence of barriers to entry. In this program, participants develop a protocol to assess the competitive position of the firm and what kind of evidence they should be looking for to ascertain the existence of competitive advantages. In the presence of barriers to entry, they develop a valuation approach that estimates the expected rate of return of investing in the company — an approach pioneered by Charlie Munger and Warren Buffett at Berkshire.

To illustrate the approach, participants will use a hands-on valuation tool to look at a set of companies in different industries: Walmart and Dollar General in the retail industry, Deere in equipment manufacturing, Nike in sports apparel, Nestle in food and beverage and finally, Facebook in Big Tech.

Download Sample Lecture

To view a sample lecture from the program, please download the program materials.

Value Investing is appropriate for executives at all levels who want to refine their understanding of value-based investing principles for professional and personal use.

Columbia Business School alumni and up to four of their colleagues are eligible for a 25 percent tuition benefit for this program. More on the Alumni Tuition Benefit.