Intrinsic Value and Long-Term Stock Prices

In the long run, stock prices tend to align with intrinsic value. The convergence of price and intrinsic value may take time. The estimation of Tesla's intrinsic value involves analyzing Elon Musk's ability to maintain the cost of capital for generating free cash flow. Unique situations like Tesla's profitability challenges require considering historical examples like Thomas Edison obtaining funding from JP Morgan despite setbacks. Such reflexive investing considerations are vital in unique cases.

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Episode notes

For this week’s episode, Stig has invited John Huber from Saber Capital management, Tobias Carlisle from Acquirer's Fund, and Dr. Wes Gray from Alpha Architect. All three guests are highly successful asset managers. They talk about different value investing concepts that all investors should know.

IN THIS EPISODE, YOU'LL LEARN:

How to know what you don’t know
How to make and lose money in market cycles
How to have the right amount of risk in your portfolio
Which investment advice you should give to your younger self
Why far more investing mistakes come from picking the wrong business than paying too much for a great business

BOOKS AND RESOURCES

Join the exclusive TIP Mastermind Community to engage in meaningful stock investing discussions with Stig, Clay, and the other community members.
Tobias Carlisle’s podcast, The Acquirer’s Podcast
Tobias Carlisle’s Acquirers Fund
Tobias Carlisle’s book, The Acquirer’s Multiple – read reviews of this book
Tobias Carlisle’s Acquirer’s Multiple stock screener: AcquirersMultiple.com
Tobias Calisle’s interview with John Huber
Dr. Wesley Gray’s website: Alpha Architect
Dr. Wesley Gray’s book: Quantitative Momentum – Read Reviews for this book
Dr. Wesley Gray’s book: Quantitative Value – Read Reviews for this book
Preston and Stig’s interview with John Huber about the intrinsic value of Facebook
John Huber’s company, Saber Capital
John Huber’s value investing blog
Q&A sessions from Berkshire Hathaway Shareholder’s meetings

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