So true. He is talking about value investing, where price may converge to the fair value if market recognizes value in that business.
It also depends upon the quality of the business.. if it’s a lousy business with moderate to low return ratio or less growth ahead then market may not be in a hurry to reach the fair value. In such cases stock can be undervalued for a long time.
One reply on “Keep the Faith”
So true. He is talking about value investing, where price may converge to the fair value if market recognizes value in that business.
It also depends upon the quality of the business.. if it’s a lousy business with moderate to low return ratio or less growth ahead then market may not be in a hurry to reach the fair value. In such cases stock can be undervalued for a long time.