Value A Small Business

In order to understand how to invest as a Buffett value investor you need to understand how to value a business.

In this lesson we’ll describe a small business, how money flows through the business, and how to value a business.

When you become an investor of a stock, you are actually becoming a part “owner” of the company that stock represents. So, in order to be a successful owner you need to understand business. Understand: Warren Buffett does not invest in stocks, he invests in businesses. Whether you are investing in 1 share or 2 million shares, you need to look at each stock as owning a business. You must grasp this concept in order to become a value investor. Continue reading Value A Small Business