poll: how long does it take in your experience to realize the intrinsic value?

[ikur1]

long live buy and hold!!!!

[Muck]

long live buy and hold!!!!

That's not an easy question to answer directly is it? Unless a respondent has ever only invested in a single stock.

I have experienced as early as one month to as long as "i'm still waiting".

[corydorus]

i think is dependent on investor behaviour and a single question maybe misleading. For example i typically do not hold stocks more than 3 years continuously.

[Temperament]

long live buy and hold!!!!

Intrinsic value?
How long?
i wish i can be sure, can i?
i think everything being equal, as long as you don't need the fund invested.
Ha! Ha!
Me? As long as i don't give in to taking profit.
But once in awhile, i return all the profit and then a lot more on papers.
That's really too long, too long for falling asleep on the job.

[xis]

It depend on when Mr Market realise it value and wheather there is a growth story to tell. Sometime this value may never be realised .. then the question to ask is how long should you hold >6mths, 1yr, 3yrs. Remember times is $$$ too.

[bookworm]

To realise the full intrinsic value, need to study and understand the controlling shareholders or management attitude towards the business and minority shareholders. Thus, it goes beyond simple analysis of financial statements and ratios.

Having said this, companies with genuine intrinsic value should be protected against downside risks and have better chances of ridung out of downturns and sell at a profit.

[CityFarmer]

It depend on when Mr Market realise it value and wheather there is a growth story to tell. Sometime this value may never be realised .. then the question to ask is how long should you hold >6mths, 1yr, 3yrs. Remember times is $$$ too.

IMO, The key is not "realized" value by Mr Market, the key is the growth of the intrinsic value.

If a stock's intrinsic value (or earning) grows at 10% annually, but the share price never catch-up due to whatever reason(s), will you give-up after 6 months, 1 year or 3 years? My answer is hold it forever...

Having said so, Mr Market normally able to catch-up after some time

[KopiKat]

I'd broadly classify it into two main categories of stocks of Growth and Non-Growth.

For the Non-Growth stocks, there's a what I call temporary discount to intrinsic value perhaps due to cycles, turnaround or over-reaction to bad news. In such a case, the intrinsic value will typically take a shorter time to be realised, can be days, weeks, months or even a couple of years.

For Growth stocks, it'll be like what 'CityFarmer' said. Ideally.... never! It's like finding a Charlie Munger kind of stock and even 'over-paying' slightly if necessary, as such stocks will continue to grow and out-grow current intrinsic value... My dream stock...If I find one, I'll hold it for as long as the growth story remains true!