CA Inter FMSM Notes by Om Trivedi ❤️
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IIMC Alumnus, Faculty of FM-SM, AFM & Case Studies, ICAI Visiting Faculty Member at LVC, NIRC & WIRC of ICAI, External Sub. Expert at the BOS of ICAI. Author, Corporate speaker, and Educationist.
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Yes Boss, 🥰

🎯 Let’s Discuss Investment vs Gambling Today.

👍 If you invest money in the stock market based on knowledge, it is called investment.

📍 However, if you invest money without complete knowledge, relying solely on tips from others, it is called gambling or betting. So, you don't want to be a gambler; you want to be an investor – right?

📌 Before buying any stock in the stock market, you should always determine the intrinsic value of that stock. Only then can you expect good profits or returns from that stock in the future.

📌 The intrinsic value of a stock refers to its actual value.

🤔 In Hindi, it is called "आंतरिक मूल्य" (Antarik Moolya).

🤔 It is also known as fair value, actual value, real value, or intrinsic value in English.

🔴 The correct price or fair value of a stock is what is referred to as its intrinsic value.

🔴 Understanding intrinsic value is important so that you do not buy a stock at a higher price than its actual value.

To understand intrinsic value is crucial because it helps you avoid purchasing a stock at an inflated price compared to its actual value.

Decision 1: If the current market price (CMP) is higher than the intrinsic value, it means the share is overpriced, and you should avoid buying it.

Decision 2: On the other hand, if the CMP is lower than the intrinsic value, it means the share is underpriced and will give you good returns in future, and you should consider buying it.

Value investors look for companies with higher intrinsic value than market value.

So, let’s invest now❗️

Let’s simplify it❗️ 🐅🐅

ALL THE BEST❗️ - OM TRIVEDI 🥰