What Is Value Investing? Part 1

March 28, 2007

Value Investing is simply buying an investment below its intrinsic value.The problem is calculating its intrinsic value. To arrive at the intrinsic value,an investor needs to predict future earnings of the investment,sum up all the earnings,and bring it back to the present value.Learn from Graham and Warren Buffet.

If you don’t understand what I’m saying,then get a book written by Mary Buffet,and read it before you come back to this blog.For those who understand me,stay with me.I will introduce value investing step by step. 

An investor must buy into an investment with a proper safety margin corresponding to the risk level of the investment. The risk level ….(continue)