A Quote by Seth Klarman
Value investing is the discipline of buying shares at a significant discount from their current underlying values and holding them until more of their value is realised. The element of a bargain is the key to the process.
Related Quotes
It is crucial to have a strategy in place before problems hit, precisely because no one can accurately predict the future direction of the stock market or economy. Value investing, the strategy of buying stocks at an appreciable discount from the value of the underlying businesses, is one strategy that provides a road map to successfully navigate not only through good times but also through turmoil.
Value investing is simple to understand but difficult to implement. Value investors are not supersophisticated analytical wizards who create and apply intricate computer models to find attractive opportunities or assess underlying value. The hard part is discipline, patience, and judgment. Investors need discipline to avoid the many unattractive pitches that are thrown, patience to wait for the right pitch, and judgment to know when it is time to swing.
The exact details of how you practice value investing will vary investor to investor, but the fundamental principle of scouring the world, looking for dollar bills that you can buy for 50 cents or at some big discount - that is universal to value investing.
All intelligent investing is value investing - acquiring more that you are paying for. You must value the business in order to value the stock.
Volatility is a symptom that people have no idea of the underlying value-that they have stopped playing the asset game. They're not buying because it's a company with certain attributes. They're buying because the price is rising. People are playing games not related to any concept at all of what the long-term value of the enterprise is. And they know it.
Men of the world who value the Way all turn to books. But books are nothing more than words. Words have value; what is of value in words is meaning. Meaning has something it is pursuing, but the thing that it is pursuing cannot be put into words and handed down. The world values words and hands down books but, though the world values them, I do not think them worth valuing. What the world takes to be values is not real value.
[W]e think the very term 'value investing' is redundant. What is 'investing' if it is not the act of seeking value at least sufficient to justify the amount paid? Consciously paying more for a stock than its calculated value -- in the hope that it can soon be sold for a still-higher price -- should be labeled speculation (which is neither illegal, immoral nor -- in our view -- financially fattening).
The purchase of a bargain issue presupposes that the market's current appraisal is wrong, or at least that the buyer's idea of value is more likely to be right than the market's. In this process the investor sets his judgement against that of the market. To some this may seem arrogant or foolhardy.
Value investing requires a great deal of hard work, unusually strict discipline, and a long-term investment horizon. Few are willing and able to devote sufficient time and effort to become value investors, and only a fraction of those have the proper mind-set to succeed.
Kings do with men as with pieces of money; they give them what value they please, and we are obliged to receive them at their current and not at their real value.
In essence, the stock market represents three separate categories of business. They are, adjusted for inflation, those with shrinking intrinsic value, those with approximately stable intrinsic value, and those with steadily growing intrinsic value. The preference, always, would be to buy a long-term franchise at a substantial discount from growing intrinsic value.
When Wal-Mart brings water down to the Katrina victims, it's not doing that to be nice; it's doing it to make larger profits and to increase the value of its shares. If its actions are not accomplishing those objectives, the shareholders can sue the executives, and sue them successfully, because it is illegal for them to act on behalf of any other reason than increasing the value of their shares. There is nothing wrong with that. That is the way that they were created and the way we want them to function to increase prosperity in the market.
Substance is a subspecies of value. When you reverse the containment process and define substance in terms of value the mystery disappears: substance is a "stable pattern of inorganic values." The problem then disappears. The world of objects and the world of values is unified.
I am a socialist and at the same time clear about a certain number of values ... family values, environmental values, the value of succeeding at school, the value of merit and respect for work. To me these are not incompatible with being of the left.
A.P., like the rest of India, has huge potential to move up the value chain by investing in small and medium enterprises to create more value addition and better paid jobs.
One of the great arts in living is to learn the art of accurately appraising values. Everything that we think, that we earn, that we have given to us, that in any way touches our consciousness, has its own value. These values are apt to change with the mood, with time, or because of circumstances. We cannot safely tie to any material value. The values of all material possessions change continually, sometimes over night. Nothing of this nature has any permanent set value. The real values are those that stay by you, give you happiness and enrich you. They are the human values.
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