08-25-2021, 11:29 AM
Fundamental Analyst Question - Why on earth would a stock trade below its book value
<!-- SC_OFF --><div class="md"><p><em>Just a small background of me no need to read</em></p> <p><em>Hi guys, so for all my life I've been a conservative and fundamentalist investor ( sadly it has not yielded me much of the gains I want ) and at my current age 20-30's i thought to myself if i won't take more riskier positions now as a young adult with no family depending on me. Then when should i take on more riskier portfolios and investment opportunities?</em></p> <p><em>Recently got into crypto and well boy let me tell you, Fundamental Analysis quickly goes out of the window here. It's unregulated, unenforceable, and most countries have no feasible legislation as to its implementation most especially with block chains and smart contracts ( it's basically the new technology which incorporated bitcoin's tech into having utility and purpose ). This is what sold me on crypto currency sometime last year actually when I saw first hand how a block chain network could actually provide utility now. As a fundamental investor on crypto I was sold. Now a decent chunk of my portfolio is in stocks and i'm looking to move it into crypto soon. I'm in the process of deciding to take out my port in stocks and put it in crypto more.</em> </p> <p>To all fundamental analyst of securities and stocks in particular, I've personally been bothered by this for a long time. Why on good earth would a stock sell below its book value ? I mean I just don't get it. It should be no brainer that people should be buying out that stock because if that company closed down tomorrow you'd be getting your money's worth</p> <p>If a stock has a book value of let's say 10 usd per share and it's being traded on an exchange for 2 usd per share. Isn't this free 8 usd per share you're taking home ?</p> <p><em>This is Warren Buffet's intelligent investor point really and it's to focus on the fundamental side of the business and not on the current market conditions ( tried to follow this strategy but so far it's been nothing but safe and slow investments )</em></p> <p>Feel free to chip in on a discussion guys
</p> </div><!-- SC_ON --> submitted by <a href="https://www.reddit.com/user/Justingolw"> /u/Justingolw </a> <br/> <span><a href="https://www.reddit.com/r/investing/comments/pb5gle/fundamental_analyst_question_why_on_earth_would_a/">[link]</a></span> <span><a href="https://www.reddit.com/r/investing/comments/pb5gle/fundamental_analyst_question_why_on_earth_would_a/">[comments]</a></span>Kind Regards R
<!-- SC_OFF --><div class="md"><p><em>Just a small background of me no need to read</em></p> <p><em>Hi guys, so for all my life I've been a conservative and fundamentalist investor ( sadly it has not yielded me much of the gains I want ) and at my current age 20-30's i thought to myself if i won't take more riskier positions now as a young adult with no family depending on me. Then when should i take on more riskier portfolios and investment opportunities?</em></p> <p><em>Recently got into crypto and well boy let me tell you, Fundamental Analysis quickly goes out of the window here. It's unregulated, unenforceable, and most countries have no feasible legislation as to its implementation most especially with block chains and smart contracts ( it's basically the new technology which incorporated bitcoin's tech into having utility and purpose ). This is what sold me on crypto currency sometime last year actually when I saw first hand how a block chain network could actually provide utility now. As a fundamental investor on crypto I was sold. Now a decent chunk of my portfolio is in stocks and i'm looking to move it into crypto soon. I'm in the process of deciding to take out my port in stocks and put it in crypto more.</em> </p> <p>To all fundamental analyst of securities and stocks in particular, I've personally been bothered by this for a long time. Why on good earth would a stock sell below its book value ? I mean I just don't get it. It should be no brainer that people should be buying out that stock because if that company closed down tomorrow you'd be getting your money's worth</p> <p>If a stock has a book value of let's say 10 usd per share and it's being traded on an exchange for 2 usd per share. Isn't this free 8 usd per share you're taking home ?</p> <p><em>This is Warren Buffet's intelligent investor point really and it's to focus on the fundamental side of the business and not on the current market conditions ( tried to follow this strategy but so far it's been nothing but safe and slow investments )</em></p> <p>Feel free to chip in on a discussion guys
</p> </div><!-- SC_ON --> submitted by <a href="https://www.reddit.com/user/Justingolw"> /u/Justingolw </a> <br/> <span><a href="https://www.reddit.com/r/investing/comments/pb5gle/fundamental_analyst_question_why_on_earth_would_a/">[link]</a></span> <span><a href="https://www.reddit.com/r/investing/comments/pb5gle/fundamental_analyst_question_why_on_earth_would_a/">[comments]</a></span>Kind Regards R