Fair Value Quotes

“You forgot that sometimes, fair value comes from change, and death, and sacrifice. You can't have everything and give fair value. You can't stop your clock and expect to stay a part of the world.”
― Seanan McGuire, In an Absent Dream

“The funny thing about using the last transaction price as a proxy for the fair value is; that even the two people, buyer, and seller, who caused the transaction do not agree that the transaction price is the fair value of that stock. They have opposite views about the real value.”
― Naved Abdali

“The discounted cash flow model of valuation is the most helpful tool for separating intrinsic and extrinsic values.”
― Naved Abdali

“There is a considerable information bias that exists among different levels of market participants. The majority of the information is not available to everybody, nor does everybody decide after considering all relevant information.”
― Naved Abdali

“Prices are adjusted up to the cumulative perception of risk of all market participants.”
― Naved Abdali

“Markets are not efficient enough; that’s why we have market peaks and bottoms now and then.”
― Naved Abdali

“Over the long term, and I mean a very long term, markets are efficient.”
― Naved Abdali

“The last transaction price is the least accurate measure of the fair value.”
― Naved Abdali

“It is impossible to say whether an asset class valuation is cheap or expensive in isolation. The valuation of an asset is relative to the valuations of all other assets.”
― Naved Abdali

“In a bubble, people are ready to pay any price without any regard to intrinsic value or any value whatsoever because they believe they can always sell it for a profit.”
― Naved Abdali

“Always remember that the minority dictates the prices, and the majority governs the value.”
― Naved Abdali

“The number one reason people lose money in investing is because they buy assets without giving any thought whatsoever to the fair value.”
― Naved Abdali

“If investors do not know or never attempt to know the fair value, they can pay any price. More often, the price they pay is far greater than the actual value.”
― Naved Abdali

“In a rising price environment, people tend to throw analysis of risks out of the window. In their mind, the only possible risk is not to join the party.”
― Naved Abdali

“Accumulate reserves of inspiration at the fair value of unforeseen contingencies, for life is unfair.”
― Vikrmn: CA Vikram Verma, Debit Credit of Life: from the good books of accounts