Applying Warren Buffett and Peter Lynch valuations : SNAP stock
When I was new, I traded just the picture of prices.
Later after living through a full cycles, I learned stocks were actually businesses.
Business sell stuff to customers and generate revenue each year.
Businesses have cash flows and earnings.
Thats why when we look book 10 to 20 years, most businesses are more valuable today then back then.
Valuation looks at what things are worth today and also looks at future potential.
Financial math is discounting the the future growth to make sure you get the best deal you can.
Valuation keeps you grounded.
You can still day trade, swing trade, and option trade all you want. Valuation just helps you know the true value inside the business so you avoid some losers and pick more winners.
Cheers and good luck on your journey!
#snap #warrenbuffett #peterlynch
Later after living through a full cycles, I learned stocks were actually businesses.
Business sell stuff to customers and generate revenue each year.
Businesses have cash flows and earnings.
Thats why when we look book 10 to 20 years, most businesses are more valuable today then back then.
Valuation looks at what things are worth today and also looks at future potential.
Financial math is discounting the the future growth to make sure you get the best deal you can.
Valuation keeps you grounded.
You can still day trade, swing trade, and option trade all you want. Valuation just helps you know the true value inside the business so you avoid some losers and pick more winners.
Cheers and good luck on your journey!
#snap #warrenbuffett #peterlynch