Intrinsic Value Easily Explained – What Is The Intrinsic Value of a Stock? (Intrinsic vs. Relative)

Описание: Intrinsic Value Easily Explained – What is the Intrinsic Value of a Stock? In this video, I want to explain the concept of intrinsic value. And I will explain it in such a way that even beginner investors will develop a pretty good understanding of what is meant by the intrinsic value of a stock or an asset in general. I am sure many of you have heard the term intrinsic value, but in my experience, very few people really fully grasp what the term actually means. And to change that I will use an example most everyone is familiar with, the example of owning or buying a house.

Once you have watched the video, you will understand why one basically cannot “invest” in non-productive assets such as painting, watches, or Bitcoin because such assets HAVE NO INTRINSIC VALUE. And as a result, one is speculating when buying these assets.

LINKS:
○ The graph in the video is a screenshot taken on SeekingAlpha's platform.

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Of course, every investment carries some risk. However, driving a car also exposes you to a certain level of risk, and yet most people drive their cars every day. Here we can actually draw a nice analogy. When driving a car you can increase your safety by driving a safe vehicle, by buckling your seatbelt, and by following the speed rules. And we can also reduce risk in the world of investing. By choosing an intelligent investment strategy, analyzing business fundamentals, being a long-term investor, and determining the intrinsic value of the business that you want to buy, you can reduce the risk of a permanent loss of capital to a minimum.

Music – PPB: High [NCS Music Without Limitations]
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Chapters:
0:00 Intro
1:29 Stock Market Myths
3:36 Defining Intrinsic Value
4:13 House Analogy
5:08 Relative Valuation
8:01 Absolute Valuation
11:10 Free Cash Flow
13:23 Conclusion

DISCLAIMER
The content provided on this channel should be considered an educational resource and should not be construed as individualized investment advice, nor as a recommendation to buy or sell specific securities. The stocks and funds discussed on this channel are examples only and may not be appropriate for your individual circumstances.

Before making any financial or investment decisions, I recommend you consult a financial planner or advisor to take into account your personal investment objectives, financial situation, and individual needs.

In no event shall René Sellmann be liable to any viewer for any damages of any kind arising out of the use of any content published on this channel, including, without limitation, any investment losses, lost profits, lost opportunity, special, incidental, indirect, consequential or punitive damages.

I hope you enjoyed the content!