Making the Value Judgement in Practice

Making the Value Judgement in Practice

It is important to have a practical, simplified model for picking out value investments.

The goal is to boil the selection process down to something that could be handled in a half an hour or less per company.


One wouldn't commit $10 million in capital to a company based on this analysis, but it provides grounds for making small investments or pursuing further research.


At the end of the drill, you should, as Peter Lynch suggests, be able to tell the story of a stock to family, friends and favourite pets. And most of all, to be able to understand, yourself, why you like or don't like a business as an investment.