Profiting with Investment Properties

The second reason we must buy this is to assure us a profit. It has been proven that the intrinsic value will eventually “shine through the mist,” so to speak; the price and the intrinsic value, though they can be vastly different, will converge over a long period of time. Thus, the market acts as a voting machine in the short term, so prices can be all over the place. But, in the long term, the market is a weighing machine; the real, intrinsic value will come to light and be reflected in the price. However, it is not exact, so we must buy significantly below; we need to be in a good ballpark. Perhaps the price will never reach the intrinsic value, but it does reach slightly below it. If we had bought slightly below the intrinsic value, we would still be getting a deal in value, yes, but we would never realize our profit. If we bought significantly below, however, then we would realize a profit.