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Market fluctuations do not necessarily reflect intrinsic value from "summary" of Security Analysis: Sixth Edition, Foreword by Warren Buffett by Benjamin Graham,David Dodd
The essence of the concept lies in the recognition that the market is a fickle beast, prone to wild swings and irrational behavior. While market fluctuations may cause prices to rise or fall dramatically in the short term, they do not always reflect the true worth of a security. Intrinsic value, on the other hand, is the underlying, fundamental value of an asset based on its true economic characteristics. It is determined by factors such as the company's earnings, assets, growth prospects, and overall financial health. In essence, it is what the security is really worth, regardless of market sentiment or speculation. When market fluctu...
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