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This is a very good point and its exactly why i dont invest in resource stocks.

i have absolutely no idea what the intrinsic value is for gold

In simple terms its the 'worth' of a business from a business owners point of view. So the 'intrinsic value' of of a share is just the 'worth' divided by the number of shares on offer.

and lets back up here for a moment sunfish. You seem to have a lot to say, but if age correlates to wealth and knowledge, and experience, you should be the wealthiest member of this forum. or did i just touch a sensitive nurve here.:D don't punch unless you are happy to enter the ring.

what has sentiment got to do with intrinsic value. Again i say are you an investor or a trader, confusing the two leads to ineficient decision making.

what loss Sunfish? Using intrinsic value, i have generated a return on my investment of more than 300% over the last 3 years. The returns are NOT based on continued excessive debt (something you highlight here on this forum with regards to property), they have been cash flow positive. So...

not necessarily. Again it depends on the reason for the movement, was it due to an increase in the intrinsic value of the share due to new information, or just due increased 'popularity' of the share. I know where you are comming from, but you must differentiate movements in intrinsic value...

or really? so the dot.com share price rise was based on a rise in intrinsic value? the potential resource bubble is based on a rise in intrinsic value? the market in the short term is a voting machine, in the long term its a weighing machine. always has been always will be. I plan to...

You have so much difficulty calculating the range of intrinsic value, because of the nature of the shares you invest in. Secondly i invest, i dont trade. Hence the continued requirement to know whether you are an investor or a trader.:D There are different rules.

Let me make one thing quite clear, a price chart gives absolutely no indication of intrinsic value. None, zippo, zilch, nothing. Can i make myself more clear!!!!! All that a price chart CAN do for an investor (as oppossed to a trader), is give an indication of market interest, so maybe as...

This is a very good point that many people dont realise. You can do the research on the company, but if you over pay for the share you have a very high risk of achieving substandard returns. Check out CXP price vs earnings for the last 10 years as a case in point. Anyway well highlighted.

We agree on one thing a picture saves alot of reading. However instead of pictures of share prices, i like pictures of share earnings. So if the above pictures were annual earnings per share (EPS) over say 10 or 15 years i would start to take more notice. The first one definately looks...

now i dont know whether this is a speculative stock that is a favourite amongst day traders. but imagine for a moment, this was an investment grade company. Those that did their research, new what their intrinsic value was. Could have got into this stock when it was $10. They wouldnt have...

i would forget the first one: why its in resources and i have no competency in trying to value resource companies. Second one is no in australia, i dont have time to spend looking at every company around the world, so i would ignore it as well. i might consider the third only due to...

the ability to forecast will be partially determined by the durability of the company. The lower the durability the harder it is to forecast.

i barely look at the charts. Charts show were things have been, i am interested in where things will go. hehe comment is going to set of a barnstorm

whats the MSN

and if you want some further 'evidence' of the benefits of intrinsic value check out MAP (old macquarie airports). Now i dont hold this share (i bought it in the general market decline and offloaded it in the subsequent rise). Anyway now my personal disclosures are over we come to the...

Exactly, spot on, why because the market has DEPENDENT PROBABILITY. If the market falls 10% then the chance of it falling another 10% is less (but not zero), if the market falls another 10% then the chance of falling another 10% is less (but not zero) etc etc. What the anti-dollar average...

Quite funny actually, this applies EXACTLY to intrinsic valuations. I also never know when the intrinsic valuation will be realised by Mr Market, but so long as my intrinsic valuation range is correct, then eventually Mr Market will realise it as well, and compensate me appropriately given...