Value Proposition

  

Categories: Company Valuation

See: Value. See: Value Investing.

A value proposition purports to demonstrate to a would-be transaction counterpart or business partner just how great the value is that they're getting in a given deal. Like..."You need protection. Pay my boys $1,000 a month. We're big Russian Mafiosos, and we know how to use baseball bats. If you don't pay, it'll cost you way more than $1,000 a month in glass repair bills. So...howsaboutit?"

Big value proposition there.

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Finance: What is a value investor?1 Views

00:00

Finance allah shmoop what is a value investor Well of

00:07

value investors and investor who buy stocks that she believes

00:10

have quote hidden unquote value That little wall street just

00:13

isn't appreciating So uh aren't all investors value investors Well

00:18

kind of yes And really no value investor Generally speaking

00:22

in this context waits until a stock with good core

00:25

assets stumbles The company falls on short term hard times

00:30

and maybe quote should unquote traded twenty bucks a share

00:34

But wall street was angry and disappointed and hurt that

00:37

the company grew revenues only seven percent instead of the

00:41

expected fifteen percent for a quarter to and the streets

00:44

sold down the stock from eighteen to seven Well the

00:47

proverbial baby is thrown out with the bathwater And well

00:51

at this point the value investor steps in and buys

00:55

the stock big They hold the stock it's a tte

00:57

seven box The company slowly fixes itself in the stock

01:01

price gradually creeps upward back to that eighteen figure And

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then the value investor likely sells the stock when it

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goes from cheap to being fairly priced like you know

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back in that eighteen twenty dollars target price kind of

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thing Yeah that's where it was supposed to be earlier

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all else being equal Well the normal cycle would then

01:18

have the value investors sell those shares to a growth

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or mo mentum investor Who's credo is more like buy

01:25

high sell higher versus the you know value investor who's

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all about by low then sell when fairly price that's

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like benji graham Look him up it's not a sexy

01:34

but you can make big bank in value Land just

01:37

asked that one billionaire who loves all you can eat 00:01:40.498 --> [endTime] restaurants Yeah what's his name again

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