Description
The second installment of the Fisher Investments On series is a comprehensive guide to the Materials sector. Fisher Investments on Materials can benefit both new and seasoned investors, covering everything from Materials sector basics to specific industry insights to practical investing tactics, including common pitfalls to avoid.
The book will begin with a discussion of Fisher Investments’ investing philosophy as it applies to the Materials sector. Then, readers will be lead through a discussion of sector basics , what drives the industries, and develop a framework for individual security analysis. Finally, the book will look at industry fundamentals and discuss what investors can do to protect themselves in a down market.
For more information visit www. materials.fisherinvestments.com
Table of Contents
Foreword ix
Preface xi
Acknowledgments xv
Part I Getting Started in Materials 1
Chapter 1 Materials Basics 3
Materials 101 4
Commodity Pricing Basics 9
The Production Process 13
Chapter 2 A Brief History of Materials 29
The Industrial Revolution 29
Structural Shifts in Metals Since the Industrial Revolution 33
Industrialization of the Emerging Markets 37
Chapter 3 Materials Sector Drivers 41
Key Drivers 42
Drivers at Work 46
Case Study: Copper 51
Part II Next Steps: Materials Details 63
Chapter 4 Materials Sector Breakdown 65
Global Industry Classification Standard (GICS) 66
Global Materials Benchmarks 67
Metals & Mining Industry 74
Chemicals 88
Construction Materials 96
Paper & Forest Products 96
Containers & Packaging 98
Chapter 5 Staying Current: Tracking Sector Fundamentals 101
What to Watch 102
Chapter 6 Case Study: The 2003 to 2007
Bull Market in Materials 117
The Backdrop 119
Demand Growth 120
Supply Constraints 130
The Growth of Mergers and Acquisitions 136
Part III Thinking Like a Portfolio Manager 139
Chapter 7 The Top-Down Method 141
Investing is a Science 141
The Top-Down Method 144
Top-Down Deconstructed 150
Managing Against a Materials Benchmark 157
Chapter 8 Security Analysis 163
Make Your Selection 164
A Five-Step Process 165
Important Questions to Ask 173
Chapter 9 Materialize Your Portfolio: Investing Strategies 181
Strategy 1: Adding Value at the Industry and Sub-industry Level 182
Strategy 2: Adding Value at the Security Level 189
Strategy 3: Adding Value in a Materials Sector Downturn 190
Strategy 4: Investing in Commodities 191
Appendix A: Materials Sector Resources 195
Appendix B: Top 10 Materials Firms by Industry 199
Notes 203
Glossary 217
About the Authors 223
Index 225
