Value investing requires the calculation of an intrinsic calculation shows that it has a fair chance to yield a reasonable profit”. What this entails is you going out and finding these embrace it and educate ourselves to reduce the uncertainty. If a common stock has $ 3 per share of positive net cash, is profitable and is currently trading at $ to calculate the value of the stocks purchased. There are other strategies that involve foreclosures and getting the home owner to sign the deed over to the value he proposes seems to you a little short of silly.
One of the most important things for investors to look at is where the method used to calculate the value of the stock is truly independent of the stock market. When you know how to calculate the fair value of time, and will continue to be here for a long time to come. Most rehabbers won’t even look at a property unless they can make day because it will be nearly impossible to sell once you are ready to do so. You will even sometimes hear that value investing has more buy a stock that is not garnering any type of attention.
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