Here is our question, does the price of undervalued stock fall when general market decline? If you bought some undervalued stocks, and the general stock market, like the S&P 500 index, is expected is decline, will your undervalued securities fall down along with the general market? Warren Buffett, the legendary value investor, said yes as early […]
Category: Investing Basics
What is intrinsic value
“Book value tells you what has been put in; intrinsic business value estimates what can be taken out. “ Buffett: Chairman’s Letter – 1983 – Berkshire Hathaway, Inc. Link: http://www.berkshirehathaway.com/letters/1983.html Now let’s focus on two terms that I mentioned earlier and that you will encounter in future annual reports. Let’s start with intrinsic value, an all-important concept that […]