A Tale of Two Titans: One to Buy-One to Sell-Walmart versus Target
Walmart versus Target
As a value investor, it’s really important to understand just how important valuation is regarding making sound, long-term and profitable and successful investment decisions. A lot of people don’t understand this. Most people tend to be price focused. There is an acronym called EDMP that stands for earnings determine market price in the long run. There is also a short run acronym EDMP that’s emotions determine market price in the short run, and that can be fear or greed primarily.
The point is, another thing that people often fail to consider is that the markets often misappraise stocks, they often will way overvalue a stock and often way undervalue a stock, and they very often value it just right. Because the idea of value investing is to invest in the business when you are buying it where the fundamentals justify the price you pay, and also allow you to participate in the growth of the business.
FAST Graphs Analyze Out Loud Video
Disclosure: Long TGT
Disclaimer: The opinions in this document are for informational and educational purposes only and should not be construed as a recommendation to buy or sell the stocks mentioned or to solicit transactions or clients. Past performance of the companies discussed may not continue and the companies may not achieve the earnings growth as predicted. The information in this document is believed to be accurate, but under no circumstances should a person act upon the information contained within. We do not recommend that anyone act upon any investment information without first consulting an investment advisor as to the suitability of such investments for his specific situation.
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