Saturday 14 December 2013

Unlocking value. Sooner or later, a stock will rise to its value (Benjamin Graham)


 “But I am no Buffett!”
You might wonder – “Buffett was able to unlock value in Sanborn simply because he earned a seat on the board and then spun off the investment portfolio. I can’t buy enough shares to get on the board of a company that I think holds a value unlocking potential! So how could I profit like Buffett did?”
Well, what if I say that you are more empowered than Buffett of 1960?
Yes it’s true! The Information Age empowers you, dear investor.
If you can find a value unlocking potential like Sanborn (though it’s difficult to find such a bargain in a period when information spreads so fast…but just in case), all you need to do is own the stock and then spread the word around.
Sure, nobody may notice your analysis or even care about it at first, but then have faith in what Graham said, “Sooner or later a stock would rise to value.”
As long as your intention is not to find a greater fool to unload your junk upon (which means you are not trying to create a fake market in a junk stock), go out and tell the world about your analysis.
Your (genuine) story will spread, sooner than later. That will lead to value unlocking.
There have been several cases of value unlocking in various markets that have earned investors a good amount of money.
So there’s a potential to earn good returns in this space of value unlocking through special situations. 
http://www.safalniveshak.com/wit-wisdom-warren-part4/

No comments: