In theory, a 30% price swing could be justified. In reality, intrinsic value is not really changing that much day to day. Stock prices are much more volatile than fundamental business changes. If every other company in the industry is trading at a multiple of five, this company's trading at 10 or two. There's something going on there,. Maybe it's warranted, maybe it's not, but it's a sign to dig in.
Motley Fool Senior Analyst Rich Greifner joins Ricky Mulvey for a primer on value investing, or trying to find out how much a company is worth, and buying them for less than that amount. They discuss:
- If there’s even a difference between growth and value investing. - Signs that a business is mispriced. - How investors can find mispriced businesses. - Why companies trade below their accounting-based worth. - If there even needs to be a distinction between growth and value investing. - Unpopular companies that may be worth your attention.
Companies discussed: META, WCC
Host: Ricky Mulvey Guest:Rich Greifner Engineer: Rick Engdahl
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