Christian Koch of KAM South
“I’ve been studying the principles, constructs and ideas of value investing for 25 years. At the core of value investing is the belief that equity markets often offer opportunities to buy stock in companies at discounts to their intrinsic value.
As further context, Ben Graham, the godfather of value investing, had a simple framework for investing. He believed there were two values for every stock:
1) The intrinsic value based on a fundamental judgment of the company’s consolidated financial statements
2) The quoted market price, which is the current price at which buyers and sellers are willing to purchase the stock
From experience, I have found these two values often diverge as we saw in the 4th quarter of 2018. This creates wide gaps between price and value based on the perceptions of market participants.”
— Christian Koch, CFP® CPWA® CDFA™ RICP® of KAM South
You can read the full paper by Christian Koch, here:
Moneyball: A Value Investors Perspective
This paper is excerpted from The Big Question — leading entrepreneurs and professionals like Christian Koch and Larry King answer important questions to help you succeed.