The two investment styles – Value and Growth – have divided the investment world for over fifty years. The two styles have become not only schools of investment thought, but labels for indexes, portfolio managers and mutual funds.
Intrinsic value is defined as the “present value of discounted cash flow”. Intelligent investing can only be done when intrinsic value can be reasonably estimated.
At the end of the day, Intrinsic Value investing is the combination of value and growth; finding value based on future cashflow in business where future growth prospects can be reasonably estimated.
