The business performance creates the value -- the price createsthe OPPORTUNITY.
No-one likes to pay too much for something. We all like to thingthat what we buy is ' good value'. It's not different when wepurchase a share in company listed on the stock market.
In the Concise Guide to Value Investing, Brian McNivenreveals how to calculate the true value of a company to find outwhether you are paying a fair price. This fascinating bookexplores:
* value investing versus speculation
* the difference between price and value
* variable values of a dollar of earnings
* accounting misrepresentation
* the characteristics of a wonderful business
* the StockVal¯® valuation formula.
Two of the world's most successful investors, Warren Buffett andCharlie Munger, are self-confessed value investors. McNiven oftendraws on their wisdom to support his approach to valueinvesting,which he defines as buying a share at a price lower thanits calculated value. Only investors who have the ability tocalculate value can call themselves 'value investors'.