Warren Buffett Tenet 11 : Intrinsic Value

For Warren Buffett, Intrinsic value of the business is very important. Infact it is core part of value investing.

Market can discount Many things but still there are some things which are Not discounted in Price. Many times market is ignore some facts.

In fact, value Investing is all, depending upon the assumption that thir is Mr Market, who sometimes is in mood to Just give good business at cheap Rates. Sometimes it also gives away the Price which is not the Price and so high.

How to decide where to trade and where to ignore?

Simple. Every business is doing its Operations. While doing so, they just make some value. It could be in Form of Profit, Cash, dividend and history, assets, tie-ups, patent, Good will or anything else.

After accepting it, it is clear that the intrinsic value of the company is not changing everyday.

I agree that the Price may differ from person to person. But there is some. The ore part of value investing is This intrinsic value. Benjamin Graham ca!e up with Formula for That. Some people says that Warren Buffett also has Formula. Maybe. But for me there is the concept which is more important.

Because what is important is the Next tenet and that all depends upon it.

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About Ashutosh Tilak

Tracking Indian Capital Market since 2010. Finance Student, On this blog I am writing about finance and Investing. You can contact me analystashu@gmail.com or @androidashu & @InsideFinanc on twitter