5. “Use Your Own Method to Evaluate Value of Stocks”

There are many ways to evaluate the value of stocks. Buffett himself has his favourite methods of calculating their value, namely – “per-share progress” and return on capital. He, however, suggests new investors to go forth with those evaluation techniques with which they are comfortable. There are many evaluation methods which are equally complicated like calculus. So, if you are comfortable with Googling the company history and performance, then do so. Mindless calculations will do no good for you if you do not understand what exactly the numbers mean. Still, a basic calculation might help.