A Quote by Warren Buffett
It's far better to buy a wonderful company at a fair price than a fair company at a wonderful price.
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A company's best advantage should be a quality product offered at the right price. That fair competition is what drives innovation.
'Fair' is, like, this incredibly overused term in negotiations: 'I just want what's fair.' 'What's the fair market price?'
It is not for me (to decide). It is up to the company to decide whether the price is fair or not.
There's no such thing as a value company. Price is all that matters. At some price, an asset is a buy, at another it's a hold, and at another it's a sell.
A company can be an amazing company, but they can set their valuation of their company so high to where they price themselves out.
When you buy enough stocks to give you control of a target company, that's called mergers and acquisitions or corporate raiding. Hedge funds have been doing this, as well as corporate financial managers. With borrowed money you can take over or raid a foreign company too. So, you're having a monopolistic consolidation process that's pushed up the market, because in order to buy a company or arrange a merger, you have to offer more than the going stock-market price. You have to convince existing holders of a stock to sell out to you by paying them more than they'd otherwise get.
If you have a company called x and today you feel the price is very high. Next year it could perform very well but the price may not perform. So in the stock market what happens is buy on the rumor, sell on the news.
Make a Fair Product for a Fair Price, then Tell the World.
Conservatives are telling elected leaders that expansion of Medicaid comes at a moral - or more overtly, a political - price. At what price are they willing to go back on years of proclaiming 'socialized medicine' as the slippery slope to 'rationing of health care,' 'death panels' and other claims far too gruesome to mention in polite company?
Today you can buy the Dialogues of Plato for less than you would spend on a fifth of whiskey, or Gibbon's Decline and Fall of the Roman Empire for the price of a cheap shirt. You can buy a fair beginning of an education in any bookstore with a good stock of paperback books for less than you would spend on a week's supply of gasoline.
I buy stocks when they are battered. I am strict with my discipline. I always buy stocks with low price-earnings ratios, low price-to-book value ratios and higher-than-average yield. Academic studies have shown that a strategy of buying out-of-favor stocks with low P/E, price-to-book and price-to-cash flow ratios outperforms the market pretty consistently over long periods of time.
A great business at a fair price is superior to a fair business at a great price.
Edge also implies what Ben Graham....called a margin of safety. You have a margin of safety when you buy an asset at a price that is substantially less than its value. As Graham noted, the margin of safety 'is available for absorbing the effect of miscalculations or worse than average luck.' ...Graham expands, "The margin of safety is always dependent on the price paid. It will be large at one price, small at some higher price, nonexistent at some still higher price."
It's good to buy a large company with fine businesses when the price is beaten down over worry about one problem.
If a lot of people feel like this company is undervalued and go out and buy the stock, the stock price will go up reflecting the higher value of this company. You might have information because you trade with them or because you've done some research on them.
You must buy on the way down. There is far more volume on the way down than on the way back up, and far less competition among buyers. It is almost always better to be too early than too late, but you must be prepared for price markdowns on what you buy.
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