Value investing generally involves buying securities that appear underpriced and selling securities that appear overpriced.
Questions tagged [value-investing]
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When and where did Warren Buffett say: “Rule No.1: Never lose money. Rule No.2: Never forget rule No.1”?
Every woo-woo financial guru claims that Warren Buffett lives by this and said this at some point in time.
When and where did this statement originally occur? What is the primary source?
Jacob Draught
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Need help understanding a quote from The Intelligent Investor
I am reading The Intelligent Investor, and the follow quote doesn't make total sense to me:
An industrial company’s finances are not conservative unless the common stock (at book value) represents at least half of the total capitalization,…
Addison
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Value stocks appreciating
A value stock bought when undervalued should presumably increase in value and eventually is no longer a value stock. How long should this take and should it then be sold?
Richard
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Where to start with finding good companies to invest?
I know its a general question but where do you start with value investing and finding undervalued companies? There must be a quick way to find a list of undervalued good companies?
Thanks
Barry
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Why Joel Greenblatt's Magic Formula ignores taxes and interest payments?
The "Magic Formula" works by choosing companies scored the best in two criteria:
How good business is, how efficiently it can reinvest its own money and grow Return on Capital = EBIT / (Net Working Capital + Net Fixed Assets).
How cheap we can buy…
Alex Craft
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Valuation of company based on earnings only?
I notice that a lot of valuation guidance, such as some online calculators, make company valuation a function of earnings. Therefore a company with small earnings (or no earnings) is valued at 0. For example, a company with $50 million in sales, but…
Five Bagger
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What would be the value of this fictitious company using the value investing philosophy?
EDIT: I found an answer to the question, but since this question has been closed, I cannot submit it. The answer would be based around this excellent video explaining step by step how to estimate the Intrinsic value of a fictitious company (though…
David
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