Don't panic! Do as Warren Buffet told you to use.....Intrinsic value of a stock


#1

#2

Is not practical concept as too many people don’t know how to assess intrinsic value.


#3

WB would never buy Tsla based on “intrinsic value” analysis. So take this with a grain of salt.

He did invest in BYD though… I wonder how that investment fared… :rofl:


#4

Well, on his defense, I don’t think he invests in a $1 million company but in the $1B+ ones.

Hanera, that’s what the report says, not an easy concept, but worthy of studying since he found his niche in that strategy.

He likes insurance companies though, the reinsurance companies are his prime objective. Lots of money to be made in reinsurance.


#5

I have studied many books written by Graham and WB. Then I realize I can’t use most of their computations because I mostly interested in growth stocks like tech stocks. Also, I realize Graham live in a depression era, and those metrics are not practical now i.e. no stocks would meet those metrics in today’s market. The concept of margin of safety is good, however don’t have to be implemented using intrinsic value comparison (scary word). Harriet’s rule to buy at 52-week low is a good example of adopting a margin of safety without using intrinsic value. IMHO, the book common stocks uncommon profit by fisher is more appropriate for growth investors.


#6

You are a smart man!

Well, he is not alone in that strategy. He may know the principles, but he may be relying on the expertise of good financial advisors. Which most everybody in the US can’t afford. Unless they want to pay $200K a day for the advice. :sweat_smile: