📖Jim Simons
Focus on Intrinsic Value
Compare price to intrinsic value, not to past prices.
Always estimate the intrinsic value of a business before investing. Compare price to value, not price to past price. The gap between price and value is where profits are made.
🏠 Everyday Analogy
📖 Core Interpretation
In Focus on Intrinsic Value, Jim Simons focuses on the gap between price and value. Returns come from paying less than what a business is worth, not from guessing short-term market moves.
💎 Key Insight：The price-value gap is the source of returns.
AI Deep Analysis
Get personalized insights and practical guidance through AI conversation
❓ Why It Matters
Ignoring valuation turns even good companies into poor investments. Overpaying compresses future returns and leaves little margin when assumptions are wrong.
🎯 How to Practice
Estimate intrinsic value with conservative assumptions, set clear buy ranges, and act only when price offers a meaningful discount with acceptable downside.
⚠️ Common Pitfalls
Confusing a low price with true cheapness
Using one metric without business context
Overly optimistic assumptions that erase margin of safety
📚 Case Studies
1
Post-Crisis Infrastructure Rebound (2012)
Invested in U.S. midstream energy and toll roads as governments sought private capital for upgrades after the 2008 crisis
✨ Outcome：Gradual multiple expansion and steady dividends produced attractive risk-adjusted returns over the following five years
2
Airports and Urbanization (2016)
Backed European and Asian airport operators benefiting from low-cost carriers and emerging market travel demand
✨ Outcome：Passenger growth and regulatory clarity supported rising cash flows, leading to both dividend growth and capital appreciation
See how masters handle real scenarios?
30 real investment dilemmas answered by legendary investors
Explore Scenarios →