Can you travel into the future? To answer this question, we need to understand the concept of time relativity. According to Einstein, time is relative. Every object has its own time. The rate at which time passes for me might be different from the rate at which time passes for you. What is Relativity? Imagine you are inside a flying airplane. For someone standing on earth, he will see that you are moving along with the airplane at a particular speed. While from your perspective, you are actually at rest. This might be counterintuitive because you know you are definitely moving along with the airplane. However, we are talking about the airplane's point of view, not the earth's point of view. Try to close your eyes when you are inside an airplane. You will feel that you are not moving at all. Another example: suppose there are two cars, A and B, moving in opposite directions at the same speed. Someone on the ground can observe that A and B are moving at the same speed, let's
Investing in stocks is quite risky if we don't do proper analysis. Stock prices can go up and down at any time. Even sometimes prices can go very low without any clear reason. One way to minimize the risk is by investing in mispriced stocks, i.e. stocks that are priced lower than their actual value (undervalued), rather than picking stocks only because of hype or positive trend. This strategy is often called value investing. The term value investing was first introduced by Benjamin Graham (the mentor of arguably the most successful and well-known investor of all time, Warren Buffet) and David Dodd in the 1920s. By investing in an undervalued stock, we expect the price to return to its fair price one day, so we will be less worried when it goes down. A lower price can even become an opportunity for us to buy more. Some Simple Valuation Methods Using Earnings There are various methods to measure stock valuation. Some of the simpler ways are involving the company's earnings, su