This chapter emphasizes the importance of valuation in investing and the concept of margin of safety. Simplifying cash flow forecasting by focusing on historical data and buying stocks at a discount to their true value are highlighted as key strategies for successful investing.
What is it worth? Why?
Ricky Mulvey caught up with Motley Fool Canada’s Jim Gillies for a conversation about how retail investors can value stocks and why they have an advantage over institutional traders. They discuss:
- The difference between price and value.
- What financial metrics can and can’t tell investors.
- The valuation case for a sporting goods retailer.
Companies mentioned: AAPL, OTC: WIPKF, MEDP, ASO, DKS, ADDYY, SFM
Host: Ricky Mulvey
Guest: Jim Gillies
Engineer: Tim Sparks
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