Vocabulary
What is Value Investing?
It is a long term investing strategy where investors look to buy stocks of businesses below their actual value.
Who is known as the Father of Value Investing?
Benjamin Graham
After waiting for the purchase of a stock, the stock price may come down perfect for purchase.
Which are taxed more long-term investments or short-term?
Short term investments are taxed more.
What is Intrinsic Value?
A measure of what an asset is worth.
Which future billionaire did Benjamin Graham teach?
Warren Buffett
What types of companies should I seek in investing?
Long-term quality companies.
What is Free Cash Flow?
Cash generated from a company's revenue or operations with the expenditure costs subtracted.
What is the Margin of Safety?
It is the difference between the intrinsic value of a stock and it's market price.
Which college popularized the education of Value Investing?
Columbia Business School
Is following current trends a part of value investing?
No it is not.
What is the Price-to-Book?
Compares the company's assets to the stock price.
What is Couch Potato Value Investing?
Indexing strategies that allow for less maintenance of the portfolio.
During which economic event did Benjamin Graham's value investing strategies help with?
The Great Depression
What buffer makes you less likely to lose money when investing?
The Margin of Safety.
What is Price-to-earnings?
This shows the company's track record for earnings to determine if the stock price is not reflecting all of the earnings or is undervalued.
What is a Value Trap?
A stock that looks like a great deal, but in actuality is not. People may fall for this without considering outside factors about the stock.
Who were the 2 main men in the creation of Value Investing?
Benjamin Graham and David Dodd.
What is the strategy in purchasing for less?
The underlying logic of value investing is to purchase assets for less than they are currently worth, hold them for the long-term, and profit when they return to the intrinsic value or above.
What holdings company does Warren Buffet own?
Berkshire Hathaway