“For some reason, People take their cues from price action rather than values. Price is what you pay. Value is what you get.”

Warren Buffett The Tao of Warren Buffett

The Investors Goal

The investor’s goal is to put more cash in his or her pocket.

In order to increase the probability of earning a benchmark return of inflation plus 8 percent, an investor should buy a stock when its price is below the Enterprise Value and sell it when its price is above its Enterprise Value. The price/ earnings (P/E) to growth (“PEG”) ratio described in Rich Shareowner, Poor Shareowner (Revised Edition) and in Money Ain’t Free provides a “quick fix” for doing this.