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“It is remarkable to hear people talk about IV or "true" value as if it was some sort of constant thing, that the IV of the stock on September 2, 2026 is some dollar valued number. And what is that number good for? Well it seems we think if the stock was priced on that day at some amount below its IV or "true" value, we should buy it, while if it was priced that day at some value above its IV, we should short it, or at least consider delaying its purchase until either its Price falls or its IV rises.”

I’m confused. I thought the idea of intrinsic value, however it is determined, always includes a time frame, whether 3, 5 or 10 years into the future, so not knowing when you are going to sell kind of makes calculating intrinsic value pointless. Deciding to sell earlier, whether matching, under or over-performing is either good timing or bad luck?

Guessing what the market will do has nothing to do with valuing whether a company’s stock is under or over-priced; going back 10 years or more gives you an idea of the way the stock behaves as a general rule. So, calculating intrinsic value, then adding the margin of safety is supposed to “guarantee” the purchase as a defined investment rather than a speculation.

Am I right about these assumptions and my logic? According to Warren and Charlie’s definition of the way they do things?

I’m revisiting my early lessons with Warren and Charlie because the market is so crazy and I’ve been distracted by much lately that I feel the need to ground myself in the basics.

Thanks.