Fundamental Finance vs Value Investing

Most investors equate Fundamental Finance with Value Investing. Although all value investors are fundamentalists, not all practitioners of fundamental finance can be defined as value investors. Both approaches focus on Security Analysis and the discovery of Intrinsic Value but Fundamental Finance branches into areas such as control situations, distressed and credit investing, as well as … Continue reading Fundamental Finance vs Value Investing

Thoughts on Margin of Safety

A Margin of Safety is the difference between the intrinsic value of a security and it's market value. In some cases, a quantitative analysis of a security will indicate a false margin of safety. The falseness can go in both directions (under- and overestimates). https://www.youtube.com/watch?v=JUba8FGvriM Margin of Safety Calculation Although the concept of Margin of … Continue reading Thoughts on Margin of Safety

How to Calculate Intrinsic Value

Intrinsic Value is the underlying value of a company or its securities, that can be estimated by means of fundamental analysis. The intrinsic value of a company should reflect the future earnings of the company, discounted to their present values. Mispriced Securities The objective of estimating the intrinsic value of securities is to identify market … Continue reading How to Calculate Intrinsic Value