Undervalued: When you are buying a new Mercedes for the price of a Proton.
Most of the time (80%), the prices of stocks in the stock market are fairly priced.
On some occasions (80%), they are mispriced, either too high or too low relative to their intrinsic value.
If you can distinguish value and price,
- you can hope to gain a lot in the stock market, usually during the bear period, by buying a new Mercedes for the price of a Proton. ;-)
- you can conversely end up crying with a big hole in your bank account when you pay in the stock market, usually during the bull period, the price of a new Mercedes for a Proton. :-(
Fountain View's Share Manipulators Caught And Fined!