REASONABLE PRICE PRINCIPLE

REASONABLE PRICE PRINCIPLE

It is never worth the value investor’s time or effort to forecast when tops and bottoms are reached.

If price is a fraction of value, value investors buy, knowing that there is a chance that the price will fall lower.

Over long periods of time the gap will narrow and often reverse.

Also read: 10 TENETS OF VALUE INVESTING

1. MR. MARKET PRINCIPLE
2. BUSINESS ANALYST PRINCIPLE
3. REASONABLE PRICE PRINCIPLE
4. PATSY PRINCIPLE
5. CIRCLE OF COMPETENCE PRINCIPLE ****
6. MOAT PRINCIPLE
7. MARGIN OF SAFETY PRINCIPLE ****
8. IN-LAW PRINCIPLE
9. ELITISM PRINCIPLE
10. OWNER PRINCIPLE