View Alberto Abaterusso's Comments
Baker Hughes: Stock Intrinsic Value Through The Past, Present And Future
Thank you very much for your comment, Doctor.
In fact, it is not enough that it is a good company before buying its shares, but the stock also needs to be currently undervalued by the market. The undervaluation also needs to represent a good margin of safety. Otherwise, an investor should wait many years before he/she can make money (he/she might not ever make money). I believe that investing in the stock market is pretty simple, just be disciplined and follow a few simple rules that allow you to minimize as much as possible the part of market risk that can be controlled.
I also feel that the best bargains are when the economy is in recession and not when it is in recovery or expansion. I do not believe those politicians and commentators who say that the results of the elections in a country like Italy will have an impact on the markets in general, but when the situation involves continents, financial markets are inevitably affected. And then I think the odds to buy a good company that is undervalued by the market is higher when markets are affected by the international economic crisis or depression and not when the economy is growing.
Finally I think that investing in a stock is a bit like when you want to buy a house. The seller tells us the price of the house and then we call a few local real estate agencies whose knowledge of recent sales in your neighbourhood would guide them to suggest a listing price for the house.
Mar 18 06:11 AM
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