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Strategies & Market Trends : Young and Older Folk Portfolio -- Ignore unavailable to you. Want to Upgrade?


To: Secret Recipe who wrote (1051)7/28/2022 8:32:25 PM
From: chowder2 Recommendations

Recommended By
INCOGNIT0$
red cardinal

  Read Replies (1) | Respond to of 21887
 
I believe there is a difference between something's value and what it might be priced at. We see this in art, real estate, coins and other commodities. A company can be valued at one level yet be selling at a very different price point. A company may be underperforming but its assets do have value. The worst case scenarios I presented is what the company's intrinsic value is worth in a bear market. I substituted the word bear for worst.

The company's value can change as new information comes in, but when I'm looking at intrinsic value, I'm looking at the company's value based on what it's worth today. Think of it like net asset value (NAV). A company can trade at a premium or discount to NAV where price can be driven by emotion, not fundamentals. So, when I take the current condition of the market into consideration, there are companies I deem worth buying based on their bearish valuations at this time, values that I think will increase in the future. I'm not always correct but we do have to start somewhere. Where would you suggest?