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Purpose

– This “masterclass” article explains how modern value investing analysis can guide corporate strategists and corporate development departments. It shows how executives can use some key insights from the recently published book by Martin J. Whitman and Fernando Diz, Modern Security Analysis (Hoboken, NJ: Wiley, 2013).

Design/methodology/approach

– This masterclass includes an interview with the lead author of the book, value investor Martin J. Whitman.

Findings

– The insights contained within Modern Security Analysis can and should be leveraged by corporate executives and strategists to create value for their firms.

Practical implications

– This article supports earlier work published in Strategy & Leadership that shows Graham and Dodd-based valuation and analysis is a viable avenue of academic research and a viable method with which to assess corporate strategic initiatives (such as mergers and acquisitions, share buy-backs, risk management, etc.).

Originality/value

– This analysis provides senior executives with a guide to the assessment tools used by the most successful value investors and an explanation of their relevance to corporate strategy.

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