Have you always wanted to know how to study the actual value of a stock price? You want to learn this so you know if the stock you are purchasing is cheap, just right or too expensive?
The Intelligent Investor, the definitive guide to value investing by Benjamin Graham is the most detailed book on deep value investing, it is also the foundation of Warren Buffett’s investment philosophy. The intelligent investor will teach you all the formulas needed to compute for the intrinsic value or the potential value of a particular stock. Once you get to learn this principles and apply it on your stock research, you will be able to determine if the stock you are studying is cheap at its current price, if it is too expensive to purchase and what is the potential of the stock to appreciate in price.
The book really drills down to the fundamentals of value investing, one reason why the book is quite thick.
What is value investing?
Just a short discussion on value investing…
Value investing is an investment strategy that takes into account the current value of a stock and compares it with the potential value of the stock based on a number of fundamental factors. It is through value investing that we get to learn the potential as well as the risks of investing in a particular stock.
I will be explaining value investing in detail in future posts.
The Intelligent Investor is available from Amazon: