In This Chapter
• Learning stocks have many correct prices
• Realizing that stock prices have little to do with value
• Knowing whether the stock is a bargain or not
• Understanding economic moats
• Understanding a company’s financial health via ratios
• Determining intrinsic value
How much is a share of stock worth? This is the fundamental question you must answer to successfully invest in stocks. If you don’t know what a share is worth, how will you know if you’re paying too much or getting a great bargain? The daily price on the stock market is often not much help. Long-term investors are focused on buying great companies that will deliver value for years to come. Finding great companies is only half ...