Hidden Values

  

Here at Hidden Values Ranch, we specialize in developing award-winning rodeo riders…and making sure they have the financial savvy and investment know-how to make their winnings support them through retirement. We do this by teaching them how to be value investors: investors who look for omitted or undervalued assets on a company’s balance sheets that might lead to big financial gains in the future.

These so-called “hidden values” can include things like trademarks and patents—intellectual property rights that might mean beaucoup bucks once on the market. Or they could be based on something physical like land; a hotel on the Vegas Strip, for example, is sitting on an extremely valuable piece of property, something it could sell at some point for a lot higher value than what is claimed on its balance sheets.

Wherever they come from, the theory behind value investing is that hidden values = future financial success. So when a wannabe rodeo rider comes to Hidden Values Ranch, we teach them how to tie a goat, bend a pole, and look for potential buried within the balance sheets of organizations.

Find other enlightening terms in Shmoop Finance Genius Bar(f)