How to Value Stocks Like a Guru #1 – The Cash Flow Analysis
What you will Learn How to differentiate between price and valueHow to use the Cash Flow Analysis, a simple tool for estimating a company's valueTo what Warren Buffett attributes his investing success My wife raised her eyebrows as I walked into the living room with the embarrassingly large Nintendo box under my arm. "How much did you pay for that?" she asked skeptically. "I paid what it cost." This was my way of hiding the price of the Nintendo. Perhaps a better way to address this would be to extol the Nintendo's value - the fun and fellowship we will get by playing together as a family. Price is what you pay; value is what you get.Warren Buffett Mr. Buffett frequently emphasizes the difference between price and value when investing. This implies two things;…