Intrinsic Value

Intrinsic value is the core measure in Value Investing: what a company is actually worth, as distinct from what it is priced at or what its books say. Buffett — The Biography draws the sharpest line against book value — “Investors often assume that book value approximates, or at least is suggestive of, what a company is ‘worth.’ In fact, the two express quite different concepts.” Book value is the capital that has gone into a business plus retained profits; intrinsic value is forward-looking — “an investor is concerned with how much can be taken out in the future; that is what determines a company’s ‘worth’ (or its ‘intrinsic value,’ as Buffett would say).”

In the Buffett narrative, intrinsic value anchors the Margin of Safety discipline he inherited from Graham — hunting securities priced “well below intrinsic value.” His definition of value broadened over time (from cigar-butt cheapness toward franchise quality) without abandoning that credo. On the Pricing page the same axis recurs: pricing connects to intrinsic value and margin of safety, and “the gap between price and worth” becomes the unit of risk.

Context: In finance, intrinsic value is generally the present value of the cash a business is expected to generate over its life, estimated independently of market price. It is inherently an estimate — different analysts derive different figures — which is why value investors pair it with a margin of safety, buying only when price sits well below their conservative estimate of worth.

Where this appears

• Buffett — The Biography — distinguished repeatedly from book value as what a company is truly worth; central to Buffett’s Graham-derived method.
• Pricing — the value-investing frame where price-vs-intrinsic-value is the unit of risk, alongside Margin of Safety.

From Roam

• Topic Ideas
  • Holistic Approach
    • All our personal, professional, and family goals work together, not independent of each other.
    • Holistic Approach Problem Solving must be used looking at the whole picture, the whole level in order to plan most effectively (focus on how that interdependence works in making plans and setting goals)
    • The Humility to Change (Desire): You must accept, welcome, and try before you can learn. Be hungry to learn, to grow, to go through the process to get to where you want to be
• Notes
  • Intrinsic Value - Audiences
  • Brendon Burchard - Success Magazine
  • Feedback on a November 2018 presentation (private note in the wiki)
  • Value Way Key Components
  • Intrinsic Value - Consulting Firm
• Articles
  • https://medium.com/accelerated-intelligence/the-5-hour-rule-if-youre-not-spending-5-hours-per-week-learning-you-re-being-irresponsible-791c3f18f5e6
  • Implementing What You Learn
    • https://www.forbes.com/sites/forbescoachescouncil/2018/01/16/put-it-into-practice-14-actionable-ways-to-implement-your-learning/#1607651b65ed
    • http://www.davidsantistevan.com/on-reading-books/
    • https://www.td.org/education-courses/adult-learning-applying-learning-in-the-workplace
    • http://www.ideaedu.org/Resources-Events/Teaching-Learning-Resources/Created-opportunities-for-students-to-apply-course-content-outside-the-classroom
    • https://www.coursera.org/learn/learning-how-to-learn
    • https://www.lifehack.org/399140/how-to-remember-90-of-everything-you-learn
    • http://www.dana.org/Cerebrum/2018/Remembering_What_We_Learn/
    • https://elearningindustry.com/employee-training-3-tips-maximize-knowledge-retention
    • https://mcgraw.princeton.edu/node/1361
    • https://www.entrepreneur.com/article/232326
• Email Marketing
  • https://tim.blog/category/marketing/
  • https://www.marketingsherpa.com/article/case-study/tim-ferriss-blog-email-transformation
  • https://kajabi.com/pricing/)https://kajabi.com/pricing/
• Comparable Writers
  • Shane Parrish, Farnam Street
  • Ben Thompson, Stratechery
  • https://www.psychotactics.com/
  • https://amp.businessinsider.com/early-retirement-money-spending-habits-experiences-2018-10
  • https://www.lifehack.org/articles/communication/top-10-most-inspirational-bloggers-the-world.html
  • https://www.sramanamitra.com/2018/12/10/bootstrapping-to-5-million-under30experiences-ceo-matt-wilson-part-1/
• IV User Research
• Random Video Recordings
  • {{youtube: https://www.youtube.com/watch?v=TAIyaUn9iAo}}

Linked from this Roam page (pages that already exist here): youtube

Also referenced (no wiki page yet): Brendon Burchard - Success Magazine · Brett Feedback on Presentation · IV User Research · Intrinsic Value - Audiences · Intrinsic Value - Consulting Firm · Value Way Key Components