- The market is irrational and can’t be used as the only measure of investment performance.
- Imagine if all the businesses you own suddenly delisted, you’d look at their value in a different way.
- Intrinsic value is based on the business owner perspective which is essential for reaching healthy long term returns.
This past Tuesday was a bad day for stocks with both the Dow and the S&P 500 falling more than 1%. This isn’t very significant for now, apart from the fact that it broke the longest run the S&P 500 has ever seen without a 1% decline (64 days in comparison to 34 days in August 1995). However, it’s an excellent introduction to today’s topic on how we measure investment performance. More →