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newjaninev2 · 56-60, F
Is the underlying value of the company growing, or just the share price?
gagan1999 · 31-35, M
@newjaninev2 share price
newjaninev2 · 56-60, F
@gagan1999 The share price will fluctuate from moment to moment depending on investors’ desire to own part of the company, or their desire not to. The price that other people are prepared to pay has little or no effect on the underlying value of the company itself.
price is what you pay
value is what you get
[i](Buffett)[/i]
You therefore need to establish how closely price matches value. Even if there is competition, the company might have advantages that make you sure it can do well (e.g. Apple)
price is what you pay
value is what you get
[i](Buffett)[/i]
You therefore need to establish how closely price matches value. Even if there is competition, the company might have advantages that make you sure it can do well (e.g. Apple)
