"The **key to value investing is to buy when the current price is below your most pessimistic intrinsic value estimation**. Then you are really buying a bargain with a margin of safety. By having a long term perspective, which gives more stability when calculating actual business values, a value investor can take advantage of the market irrationality which is strongly influenced by the unprecise analysts’ research." ([Location 2428](https://readwise.io/to_kindle?action=open&asin=B07CNFFJ9J&location=2428))
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**Tags** -- [[quotes]], [[pessimism]], [[valuations]], [[value-investing]], [[long-term-thinking]],
**Source** -- [[202506221723 - LN - Modern Value Investing]]