The first key to understanding inflation is to recognize the difference between real and nominal. If you think about a physical $100 bill, it is easy to understand that 50 years ago, it was still a $100 bill. We called it the same thing, it looked (mostly) the same...
When considering the value of an asset, what most people consider is the nominal value or “price” of the asset. When prices are going up, people get excited, and greedy. Rational analysis quickly gives way to fanciful visions of easy wealth. Conversely, when prices...
One of the most important things that any of us can do to improve the quality of our lives is to improve the quality of our decisions. This principal applies to our personal life, our professional life, and our investments. What the notion of Value Investing really...
One of the primary tenants of value-based investing decisions is the notion of “fair value” or “intrinsic value” of an asset. This asset can be a company, or it can be an income property … the principals are the same in both cases. As intelligent investors, the way...
The notion of “value investing” was first made popular by Ben Graham, and later by Warren Buffett. At its core, value investing is about knowing the fundamentals or “intrinsic value” of an asset. What this ultimately means, is that investors should seek to learn...
