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Showing posts with label Quick rules for recognizing value and un-value. Show all posts
Showing posts with label Quick rules for recognizing value and un-value. Show all posts
Wednesday, 14 August 2013

The market prices reflect the sentiment of the investors. To protect oneself from the volatilities of the market prices, the smart investor needs to understand the value of the business he is investing into.

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It is the nature of the market that prices of a stock can be pushed to very low level when the crowd is pessimistic.  On the other hand, the...
Saturday, 10 March 2012

Price is not value, pricing is not valuation, and pricing models are not valuation models.

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A valuation model is an effective method for estimating  economic value . Another term that is used to refer to economic value is ...
Friday, 17 February 2012

Risk is dependent on both the nature of investments and on their market price

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The risk of an investment is described by both the probability and the potential amount of loss. The risk of an investment - the probabil...

Greater risk does not guarantee greater return, risk erodes return by causing losses.

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Greater risk does not guarantee greater return. To the contrary, risk erodes return by causing losses. It is only when investors shun h...
Saturday, 17 December 2011

Handling stock price falls

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30 May 03 When a stock price falls, do you sell, buy more or hold on? It all depends, but there are some techniques to help you with your ...
Wednesday, 8 July 2009

Quick Rules for Recognizing Value and Un-Value

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This summarizes how to use PE and its "family of measures to recognize value and un-value in stocks and stock prices. Many of these can...