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Intrinsic Value of Stock – Warren Buffett’s Formula

Discussion in 'Technical Analysis' started by shabbir, Jul 19, 2020.

  1. shabbir

    shabbir Administrator Staff Member

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    Intrinsic value is the future value of an asset. Let's see how Warren Buffett calculates Intrinsic value and use his formula on Indian stocks

    Continue reading...
     
    shabbir, Jul 19, 2020
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  2. ravish55

    ravish55 Member

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    Thank you.
    What I understand from google spreadsheet calculation, how much time a stock will take to generate same return as of fixed deposit or bond at 6% interest / coupon rates. As per calculation 3 stocks will take close to 14 years and JK paper will take 3/4 years to surpass interest / coupon rates.






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    ravish55, Jul 19, 2020
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  3. shabbir

    shabbir Administrator Staff Member

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    Exactly. However, what is more important is the assumed growth rate that you put in. Be realistic. Divis lab can't continue at 21% CAGR profit growth rate for next 15 years.
     
    shabbir, Jul 19, 2020
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  4. ravish55

    ravish55 Member

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    Agree. I consider you as mentor, possible for you to give your suggestion sector wise bullish / bearish as and when situation arises. Time permitting one should visit website www.ibef.org


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    ravish55, Jul 19, 2020
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  5. shabbir

    shabbir Administrator Staff Member

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    Sure but I prefer to let people know what they should do because relying on others never will work.
     
    shabbir, Jul 20, 2020
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  6. ravish55

    ravish55 Member

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    Many people purchase stock by listening to expertise or word of mouth.. Since u r one of the expertise, we request you to give sector news and stock selection let people manage their own.

    Looking at all legal aspects, we don’t mind if u share ur portfolio.


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    ravish55, Jul 20, 2020
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  7. shabbir

    shabbir Administrator Staff Member

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    I am not a SEBI registered and so can't recommend stock. Moreover, I don't want to be either because I prefer to invest than to say where you should invest.
     
    shabbir, Jul 20, 2020
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