Question
1 Whats the difference between the terms intrinsic value and market price? or in other words, whats the difference between Value and Price? 2 If
1 Whats the difference between the terms intrinsic value and market price? or in other words, whats the difference between Value and Price?
2 If the value > price, then BUY according to value investors
If the value < price, the DONT BUY or maybe sell or hold according to value investors
Would momentum investors say Buy or Dont Buy?
What would income investors want to know in order to make a BUY decision?
3 Whats the difference between fundamental analysis and technical analysis? Dont simply define them both. Figure out whats different.
4 - According to The Random Walk on Wall Street, by Burton Malkiel, active investing might give you a higher ROI than the market average, but active investing doesnt beat the average (S&P 500) for long, and over a long period of time it usually has a lower ROI than the S&P 500 average. Name two ways you can actually invest in the market average.
5 The P/E method of valuation is appropriate for Value investors. What does it mean if the P/E ratio is higher than the industry average? Should you buy the stock or not?
6 Why is EPS an inferior measure compared to cash flow? In what way is it a superior measure for stock investing compared to cash flow analysis?
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