Important Lessons Flashcards
1
Q
What is intrinsic value
A
The value of an asset ignoring future possible fluctuations of value and the time value of money.
2
Q
What does Warren Buffet say about intrinsic value.
A
He says that it is important to buy an asset at its intrinsic value or less. You can only do this if you understand the asset. If you don’t do this, you are subject to panic selling, fear of less, panic buying and missing out
3
Q
What are price corrections
A
Price corrections are an assets rapid decrease from a recently achieved peak. The asset will usually return to the price within the established trend
