How many stocks can an individual follow in a sufficiently deep way so that you understand
the underlying value of the business?
Rather, the goal in FF is to understand
the underlying values of a business as well as the business» dynamics.
Alternatively, if a business is significantly overvalued it might be a good time to sell as well because the market is willing to pay significantly more value than
the underlying value of the business.
«How many stocks can an individual follow in a sufficiently deep way so that you understand
the underlying value of the business?
Certainly,
the underlying value of a business doesn't fluctuate that much on an annual basis, so the public markets are a fantastic arena to buy businesses if you can sit still without growing tired of sitting still.»
The underlying value of businesses does not bounce around much from day - to - day.
Our fundamental belief is that stock prices are more volatile than the true
underlying values of the business that they represent.
Remember, «quoted» prices can and often do reflect the emotions of the crowd, not the true
underlying value of the business.
In the long - run, we believe stock prices should converge to the true
underlying value of the business.
Given the short timeframe in which Teva would need to auction off the assets, identifying those assets was critical to proving
the underlying value of the business and therefore the price it could fetch.
We draw on our wealth of experience and our positive attitude to assist clients in achieving a quick and satisfactory conclusion to disputes whilst always ensuring
the underlying value of the business is not materially affected.