The business performance creates the value — the price creates the OPPORTUNITY.
No-one likes to pay too much for something. We all like to thing that what we buy is ' good value'. It's not different when we purchase a share in company listed on the stock market.
In the
Concise Guide to Value Investing
, Brian McNiven reveals how to calculate the true value of a company to find out whether you  are paying a fair price. This fascinating book explores:
value investing versus speculation
the difference between price and value
variable values of a dollar of earnings
accounting misrepresentation
the characteristics of a wonderful business
the StockVal
®
valuation formula.
Two of the world's most successful investors, Warren Buffett and Charlie Munger, are self-confessed value investors. McNiven often draws on their wisdom to support his approach to value investing,which he defines as buying a share at a price lower than its calculated value. Only investors who have the ability to calculate value can call themselves 'value investors'.