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Be conservative in your estimates when valuing a company from "summary" of The Intelligent Investor by Benjamin Graham
When valuing a company, it is crucial to be conservative in your estimates. This means erring on the side of caution and underestimating rather than overestimating the value of the company. By taking a conservative approach, you are less likely to be blindsided by unforeseen risks or challenges that could impact the company's performance. One way to be conservative in your estimates is to use historical data and trends as a guide. Instead of projecting rapid growth based on the latest industry fad or hot stock tip, look at the company's past performance and growth rates. This can give you a more realistic picture of what the company is capable of achieving in the future. Another wa...
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