Canadian Capitalist first brought Vitaliy Katsenelson's Active Value Investing to my attention in this posting.

Katsenelson believes that we are in a range-bound market, defined as a market that goes up and down, but ultimately ends up back where it started. He believes that this market will end around 2020, and will be characterized by a period of gradual P/E compression. Traditional value investors who buy and hold stocks for a long period of time will fare poorly in this type of market.

The book provides a sound analytical framework for evaluating stocks, the Quality, Valuation and Growth (QVG) framework, and delves into absolute valuation tools. Katsenelson advocates an active buying and selling process during range-bound markets, and emphasizes the importance of stock selection and the selling process. One of the reasons I like this book is that our managers all focus on bottom-up analysis and stock-picking.

I thoroughly enjoyed this book and feel that its ideas are relevant to investors in any market.