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In the context of the stock market, price refers to the amount of money that the market is willing to pay for a share of a particular company at a given time. It is determined by supply and demand dynamics in the market. On the other hand, value refers to the intrinsic worth of a company, which can be calculated based on its fundamentals such as earnings, dividends, assets, and growth potential. The value of a company may not always be reflected in its current stock price. This discrepancy can create opportunities for value investing, where investors buy stocks they believe are undervalued by the market.
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Price and value are two different concepts, and stock prices frequently don't reflect a company's actual value. More risk does not necessarily correlate with more gain. On the contrary, a substantial margin of safety and the difference between stock price and fundamental asset value can protect against loss while improving potential upside. Value investing can help you create a core portfolio that frees you from the need to track market prices and guarantee maximum odds of a steady return.
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This book will not teach you how to beat the market. However, it will teach you how to reduce risk, protect your capital from loss and reliably genera...
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Discover a new approach to wealth management and start with small steps that can eventually lead to substantial assets. Robert Kiyosaki, author of the viral book Rich Dad Poor Dad, explains how anyone can move to the lucrative side of the Cashflow Quadrant and flourish financially.
All-time best-seller that lays out the steps needed to unleash one's potential, focusing on building individual self-confidence and a clear set of goals. Each chapter addresses one of the author’s principles to leading a meaningful and productive life: desire, faith, autosuggestion, among others.
Need help with which companies or projects to invest in? As a key driver of value in business, ROIC measures how well the company deploys its capital. Use our ROIC & Investment Valuation spreadsheet to compare the efficiency of capital use between companies and make the right investment decisions.
Need to compare real estate investment opportunities? Use the Residential ProForma spreadsheet to quickly identify if a real estate investment opportunity will be profitable. The proforma shows a ten-year financial outlook, adjusted for inflation, and lets users experiment with different scenarios. The spreadsheet comes with a detailed proforma, amortization schedule, and charts that track investment metrics. Quickly view the cumulative profit of a property over the next ten years, along with the present value and other key metrics adjusted for inflation and rent increases. The spreadsheet lets users conduct detailed scenario plans and make informed investment decisions.
Real estate can be a great addition to an investment portfolio. But as with any investment, it has to be the right buy. This spreadsheet helps analyze multifamily properties via income, expenses, and debt service.
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Financial statements do not always tell the entire story about a company. Accounting methods and financial reporting require an executive to decipher the red tape, look beyond what is on the printed page and make decisions that will affect the bottom line. Financial Intelligence gives non-financial managers the financial knowledge and confidence for their everyday work.