Table of Contents
- · if something carries a low valuation, there’s probably a good reason, and
- · Second, as noted earlier, if conclusions regarding Company A’s potential can easily be reached by a finance student with a laptop, how valuable can such conclusions be?
- dichotomy, value investing should instead consist of buying whatever represents a better value proposition, taking all factors into account.
- (c) their potential causes their securities to be assigned valuations that are high relative to the historic averages. The goal at the end of the day should be to figure out what all kinds of things are worth and buy them when they’re available for a lot less.