Posted by kcchongnz > 2013-02-21 17:41 | Report Abuse

"It was around this time that Graham came up with the principle of "intrinsic" business value - a measure of a businesses' true worth that was completely and totally independent of the stock price. Using this 'intrinsic value', investors could decide what a company was worth paying for - and make investment decisions accordingly. His subsequent book, "The Intelligent Investor" [which Warren celebrates as "the greatest book on investing ever written"] introduced the world to Mr. Market - the greatest investment analogy in history."

Is Benjamin Graham and Warren Buffet so respected in the investment community? How come I don't see anybody in i3investor, none at all, using their principle of looking at stock as part of a business, find out what is its "intrinsic value", and invest in it only if there is a wide "margin of safety". How many "investors" in i3investor understand what is "intrinsic value" and "margin of safety"?

Posted by necro > 2013-02-21 18:41 | Report Abuse

Bro kcchong not all ppl can interprate company report and beside that to buy stocks at margin of safety we must know first INTRISIC VALUE of the company...
Most of ppl like to trade not to invest..as they want return in shorter time...
For example bro kcchong what is Intrisic value of Digi in your opinion?

Posted by Steve Jub > 2013-02-22 07:31 | Report Abuse

just wondering, in warran buffet's books, has he exposed all his secret is calculating intrinsic value or he only give portion of his secret? :)

Posted by tptan45 > 2013-02-22 08:34 | Report Abuse

If I am not mistaken, Warren Buffett has never published his methodology. The closest that anyone can get is the book written by his daughter in law. If you think that is too heavy ( like me) read the Guru Investors.

Posted by Steve Jub > 2013-02-22 08:48 | Report Abuse

ya lo, else he cannot cari makan liao lol

Posted by kcchongnz > 2013-02-22 16:59 | Report Abuse

Posted by kcchongnz > Feb 21, 2013 05:41 PM | Report Abuse X
"It was around this time that Graham came up with the principle of "intrinsic" business value - a measure of a businesses' true worth that was completely and totally independent of the stock price. Using this 'intrinsic value', investors could decide what a company was worth paying for - and make investment decisions accordingly. His subsequent book, "The Intelligent Investor" [which Warren celebrates as "the greatest book on investing ever written"] introduced the world to Mr. Market - the greatest investment analogy in history."

It was Benjamin Graham's principle of intrinsic value, not Warren Buffet's. Warren was a student and disciple of Ben. One can see Warren Buffet following the principles of intrinsic value and margin of safety in investing through his numerous letters to shareholders of Berkshire Hathaway.