Lecture, three hours. Requisites: course 101, Management 1A, 1B. Introduction to fundamental principles of value investing. Discussion of fundamental themes relating to value investing, and demonstration of how these ideas compare favorably with other investment approaches. Topics include differences between investment and speculation, how to search for inefficiencies in marketplace, and importance of incorporating margin of safety in any analysis. Introduction of standard accounting and valuation tools, including liquidation value. Prepares students to analyze and interpret financial statements. Designed for students considering careers in security analysis, investment banking, consulting, and corporate finance. Letter grading.