Vocabulary
Value investing is an investment paradigm that involves buying securities that appear under priced by some form of fundamental analysis.
What is value investing
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.
What is the benefit of the Waiting Game
Which are taxed more long-term investments or short-term
Short term investments are taxed more
A measure of what an asset is worth
What is Intrinsic Value
Future billionaire Benjamin Graham taught
Warren Buffett
What types of companies should I seek in investing
Long-term companies
What is Free Cash Flow
Cash generated from a company's revenue or operations with the expenditure costs subtracted
It is the difference between the intrinsic value of a stock and it's market price
What is the Margin of Safety
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
measures the value of a company's assets and compares them to the stock price
Indexing strategies that allow for less maintenance of the portfolio.
What is Couch Potato Value Investing
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
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 Price-to-earnings
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.
What is a Value Trap
Who were the 2 main men in the creation of Value Investing
Benjamin Graham and David Dodd
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 is the strategy in purchasing for less
What holdings company does Warren Buffet own
Berkshire Hathaway