Believe me when I say that I'm trying to make this as simple as possible because investing is complicated already. If I'm looking at a company's book value (shareholder equity) and I'm trying to see if it's bigger than the current market cap, do I just literally look at one and then look at the other to see the difference? Do I have to crank out an equation to see if one equals the other or is it as simple as just keeping your eyes a little bit more open?
Yes, trying to figure how exactly how much a security is undervalued or overvalued is the goal. And none of the analytical work can really be backchecked (you really have to trust what you know and that's a problem when you have zero background in this stuff and zero business experience at all), but how much simpler can you really make this without losing something substantial in the analytical process?
Submitted July 03, 2018 at 07:21AM by howtoreadspaghetti https://ift.tt/2KrNjhn
