Lesson 01 — Price vs Value
Week 02 · Lesson 1 of 7 · Week 02 — Foundations: Thinking Like a Long-term Investor
Back to beginner course
Price = what the market is quoting today Value = what the business is worth over time Hinglish: “Price market batata hai, value business batata hai.” Markets...
The most important distinction
- Price = what the market is quoting today
- Value = what the business is worth over time
Hinglish: “Price market batata hai, value business batata hai.”
Why beginners get trapped
Markets move faster than businesses. That creates confusion.
Example (Nifty 500):
- HDFC Bank price can fall in a bad quarter
- Business (customers, deposits, brand) doesn’t disappear overnight
Beginner anchor
Price is noisy. Value is slow.
Visual: Price vs Value over time
Short-term price
Short-term price
Volatile
Ups & downs
Business value
Business value
Slow change
Long-term trend