A framework for investing

All of us believe - in fact, we know - that the main problem in investing is determining the intrinsic value of a business compared to its stock price in order to identify mispriced investment opportunities. However, like most things worth doing, that's easier said than done. Estimating the future is never easy. The list of things that could influence what a business is worth is huge: product, markets, competition, macro factors, people, and of course pure luck. If you are investing a sum of money that's important to you, then the margin of error is small and your own psychology, your own state of mind becomes as important a factor as anything e