Friday, December 2, 2016

OK, let us consider value investing and the trading pits


Apply this idea [value investing]  to stocks and you have value investing, plain and simple. Any time you buy a stock, you want its intrinsic value to be higher than its market price. If you have the right temperament and you're willing to put in the effort, you can learn how to successfully invest in individual stocks using value investing techniques. This tutorial will help you get started. (To learn more, refer to The Value Investor's Handbook.)
Read more: Value Investing: Introduction | Investopedia http://www.investopedia.com/university/value-investing/#ixzz4RieDwIOn 



And reading further we would learn how to evaluate instrinsic value from book value, pricing history, dividend stream; in ways I do not know,yet.

But I do know this, I can represent the balance sheet and cash flow of any organized accounting sheet as accurate as necessary for value investing, if I can get the raw inputs and capture the amount of redundant vs innovative data the comes through. Once I have that, then I can re-create all the variables needed for value investing, except I have the precision of that data captured in a systematic way. 

That is, the mathematician astrophysicist can make the balance sheet a distribution with which we can do convolutions. Same data, the balance sheets look the same. We is just we apply the old chart analysis in real time, and represent the data as a series of probable 'tipping' points'.  In other words, we can tell you when a Graham and Dodd estimation is off base, try another chapter

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