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5 Lessons Business School Taught Me About Stocks

June 14, 2016

Via: U.S. News

I got my MBA back in the 1980s, but the fundamental truths about investing haven’t changed much since then. The names have changed, but the ideas have not, especially if your interest is not in day trading but in building long-term assets for retirement.

The theory says that a stock should equal the net present value of the company’s future profits. If the current price of the stock is lower, then it’s a good buy. If it’s higher, then it’s overpriced.

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