This article was originally published on New Constructs as part of the Value Investing 2.0 series. It is republished courtesy of New Constructs. This is article 1 of 3 in the “Intermediate” series. Most investors do not realize that earnings, earnings per share and earnings growth are only accounting data and should not be relied […]
Value investing is how Warren Buffet built his fortune. Mr. Buffet learned from his professor at Columbia University, Benjamin Graham, to whom the above quote can be attributed.
The best and easiest way to make money in the stock market is to follow the principles of value investing. Removing noise from the market and focusing solely on the economics of a given business allows an investor to form a clear conclusion about the company.
The difference between Investing and Speculating is much larger than Wall Street would have you believe. In fact, they could not be two more different activities. Speculating is gambling. Investing is intelligent decision-making.