As a value investor, I hate to overpay. That’s not just true of stocks, but pretty much anything else… tools, lawn equipment, you name it. My kids call that cheap, but they don’t really understand. #-ad_banner-#The goal isn’t just to buy the cheapest option in any particular category. In some cases, I buy the top-of-the line model. What matters is the relationship between price (what you pay) and value (what you get). In short, I strive to get my money’s worth and maximize my returns. But how do we determine value? Price… Read More
As a value investor, I hate to overpay. That’s not just true of stocks, but pretty much anything else… tools, lawn equipment, you name it. My kids call that cheap, but they don’t really understand. #-ad_banner-#The goal isn’t just to buy the cheapest option in any particular category. In some cases, I buy the top-of-the line model. What matters is the relationship between price (what you pay) and value (what you get). In short, I strive to get my money’s worth and maximize my returns. But how do we determine value? Price is right there in black and white, but value can be much harder to quantify. Usually, the best way to approximate what an asset is worth involves comparisons to similar items. In real estate, home appraisals are based on comparisons to other properties of similar age and square footage in the surrounding neighborhood. And if you’re trying to assess the value of a pre-owned 2009 Honda Accord, there are resources to see what other buyers have paid for that particular make and model. Armed with this information, you have a much better idea of… Read More