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Today at a Glance:
Lesson From the Book: Undervaluation and Overvaluation (Margin Of Safety)
Tweet: Cashflow Statement 101
Quote from Peter Lynch
Snippets: 3 Snippets from different books
Bonus: 40-50 Best books related to Investing at a Huge Discount, Check it Here
Undervaluation and Overvaluation (Margin Of Safety) (Book)
A key lesson for me is that, in the long run, I will save an awful lot of money if I succeed in countering this tendency to overpay. This should also save a lot of my brain cells. After all, if I pay too much upfront, I’d better understand everything there is to know about the company since there is no margin of safety. If I invest when it’s undervalued, I can be wrong about a whole host of issues and still make a good return.
Checklist Items: Is this stock cheap enough (not just in relative terms)? Am I sure that I’m paying for the business as it is today— not for an excessively rosy expectation of where it might be in the future? Does this investment satisfy me psychologically by meeting some unmet personal needs? For example, am I keen to buy it because it makes me feel smart?
One Tweet
One Quote
It’s not always brainpower that separates good investors from bad; often, it’s discipline.
- Peter Lynch
Interesting Books Snippets shared during the Week
1. Learning From Hiren Ved (Book)
2. Fundamental Analysis, Strict Discipline, and Endless Patience (Book)
3. This is how Info Edge Limited Started! (Book)
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