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Buffett emphasizes the importance of buying businesses at a discount to their intrinsic value from "summary" of Warren Buffett's Ground Rules by Jeremy C. Miller
Warren Buffett's investment philosophy revolves around the idea of purchasing businesses for less than what they are actually worth. This concept is known as buying businesses at a discount to their intrinsic value. Buffett believes that by acquiring companies below their intrinsic value, he can achieve superior returns over the long term. This approach is based on the principle of value investing, which focuses on identifying undervalued assets and capitalizing on their potential for growth. Intrinsic value is a fundamental concept in Buffett's investing strategy. It represents the true worth of a business, taking into account factors such as its earnings potential, competitive advantage, and growth prospects. By determining the intrinsic value of a company, Buffett can assess whether its current market price offers a favorable buying opportunity. If the market price is significantly lower than the intrinsic...
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