Think Like a Value Investor

Send us Fan Mail What are you actually buying? If your answer is a ticker symbol, a tip from your brother-in-law, or a stock that "used to be forty dollars," this episode is for you. Ben Graham's idea was simple: a stock is a piece of a real business, and price is not the same thing as value. In this episode, I explain why that difference matters, how cheap stocks turn into value traps, and why the market's bad days are usually mood, not business. I'll also tell you about a retired schoolteacher who came to my office with a highlighted newsletter and a very strong stock tip, and I'll give you the one-sentence test to use before you buy anything. You don't have to pick stocks to think like a value investor. You just have to know what you're paying for. Have a comment or a topic request? Leave me a message in Fan Mail. I read every one.