About this lesson:
In this section, you are going to learn a very simple, yet extremely effective way to figure out what a stock should be worth.
As value investors, we never pay full price for anything, especially stocks that we may invest in. After this section, you will know, with a high degree of accuracy, what the intrinsic value of a company is. Once you know this information, you will know when to buy, and that is when it is trading at a discount to fair value, aka, it's on sale. You will know when not to buy and that is when a stock is fairly priced (remember we only buy when the stock is on sale). This could be a good time to put a stock on your watch list. You will also be able to identify the right times to sell, and that is when the stock is overvalued, aka, it's trading for more than it is worth.
Here's what we cover: