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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?


To: Suma who wrote (34052)4/3/2009 2:50:36 PM
From: Paul Senior1 Recommendation  Read Replies (1) | Respond to of 78744
 
"VALUE is in the eyes of the beholder and not
in valuation. Would you not agree ?"

Sure, but for me to have any meaningful understanding of the person's view about a stock, I'd say there are two requirements:

1. The person has to have some method or criteria for determining value.

2. Somehow that person has to communicate what that method or criteria is.

Anybody could say Chipotle is a value at any price. The people buying the stock today, right now, must have some belief they are getting a value. But if they won't/can't provide some rationale for that opinion, then I am left to rely only on my own method/criteria for an evaluation, because I can't see the other person's perspective.

Kind of like when somebody only says they rely on their gut to tell them the stock is a buy. I always want to ask them then to send me a picture of their stomach so that I can evaluate it -g-