Intrinsic Value

Any great company is a bad invesment if the price is high enough. We have to distinguish between a company and a stock.

A company may be great because it has excellent management and unique service, but it may be a bad investment if the stock fully reflects this information.

Alternatively the stock of a troubled company could be a great buy if the price more than discount all the problems.

Great buying opportunities sometimes arise when investors overreact to bad news. They more than discount all the pessimism about a company and the stock price falls below its intrinsic value.

Cheap enough, any company is a buy. Costly enough, any company is a sell. The trick is finding what a company is worth. Whether a company is good or bad, the stock is good only if it’s selling or less than it’s worth.

The trick is to find what the stock is worth that is the intrinsic value. Discounted cash flow is one of the method.

Be Happy

God won't ask what kind of car you drove, but He'll ask how many
people you helped get where they needed to go.

God won't ask the square footage of your house, but He'll ask how many
people you welcomed into your home.

God won't ask about the clothes you had in your closet, but He'll ask
how many you helped to clothe.

God won't ask how many friends you had,
but He'll ask how many people to whom you were a friend.

God won't ask in what neighborhood you lived, but He'll ask how you treated your
neighbors.

God won't ask about the color of your skin, but He'll ask
about the content of your character.

God won't ask why it took you so
long to seek Salvation, but He'll lovingly take you to your mansion in
Heaven, and not to the gates of hell.