A short speaker excerpt advising investors to buy assets at a discount to their intrinsic value rather than following market trends. The speaker uses gold as an example (cites current price and past performance) to illustrate that market price can far exceed intrinsic value, and mentions learning this lesson from Templeton.
You need to buy at a discount to intrinsic value. And what is intrinsic value? I'll give you an example. Gold today is $3,150. Two years ago was not a hedge against inflation, but it's done extremely well. It's up 19% this year. You know, it's not, you know, it's probably up 75% in the last, you know, two, three years. So it's done extremely well. The intrinsic value of gold may be $1,000 an ounce. Okay? It's trading three times that. And that is gold used for industrial purposes and jewelry, et cetera, et cetera. Everything else is speculation that it could be a hedge against inflation. There's a lot of fear out there right now. So people are buying gold. So there could be some fundamental reasons. But if a company is worth $10, you don't want to buy it at $10. You want to buy it at seven, seven and a half dollars. So that's the important thing about investing, okay? Not follow the herd. And this is what Templeton taught me.
