From the course: Managing Your Personal Investments

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Identifying market value

Identifying market value

From the course: Managing Your Personal Investments

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Identifying market value

- Gauging the value of an investment is a single most important goal of investing. If you find an undervalued investment and buy it and hold it while the rest of the world jumps on board, it can be a fantastic experience. Your goal is to buy the undervalued companies and avoid the overvalued ones. So how do you gauge value? That's literally the million dollar question. So the goal of your search for value is to find undervalued companies, the bargains, the companies with prices that are too low, or have an underappreciated new product or companies that are misunderstood, or just not well-known. Essentially, you want to find a company that has a potential to grow, but it's inexpensive to buy. To do this, start with what you know, begin at home or at work with companies that you spend money with. If you love them, your friends talk about, and they have a new product that blows you away and you can't live without them…

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