Warren Buffett exact words on Intrinsic Value

This is Warren Buffett answer to a question posed on what is intrinsic value is about.

He remarked, "Intrinsic Value is the figure you would come up with if you knew what all the earnings from a business would be between now and what would eventually be disappeared - I mean between now and judgement day. And it's a measure of the cash a business would be able to distribute, whether one year from now or 10 years from now or 50 years from now, discounted back at an appropriate interest rate and that relates to the long term government rate and now some business are terribly certain.....some business are incredibly different to predict, we try to stick to business which are easy to predict."

And he went on to describe that though what he always stick to are always what he understood, he too acknowledged the fact that what he did not understand may also be a better or superior investment than what he would invest in all those which he understood. But then he will not invest in something which he does not understand even though it may be a better investment because he cannot read the game but there are always others who can. So here is a very important insight which he pointed out, always stick to your competency.