Tag: Valuation

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 →

Marty Whitman´s four sources of wealth for the value investor

The following conjecture is an excerpt from a Barron´s interview with Martin Whitman of Third Avenue Funds. Mr. Whitman is a legendary value investor who has a very interseting approach to value investing.  Whitman is very critical on GAAP and which he thinks is exessively geared towards flows as opposed to net asset values. Anyway, … Continue reading Marty Whitman´s four sources of wealth for the value investor →

Market Value of Juventus Shares

The recent forced sale of Liverpool FC has caught the spotlights.  According to Financiele Dagblad, the club was acquired by New England Sports Ventures (NESV) for € 341m. However, Singaporean Peter Lim had made an offer worth €412 but stepped down as the Board of Directors was clearly not interested in a bid from him. … Continue reading Market Value of Juventus Shares →

From Micheal Burry´s 4Q2000 Annual Letter

From Micheal Burry´s 4Q2000 Annual Letter: When planning for a double, every dollar in excess cost amounts to two dollars in excess gain required. Every dollar saved amounts to the same two dollars in excess gain already realized. And it goes without saying that a 33.3% loss requires a 50% gain just to attain breakeven. … Continue reading From Micheal Burry´s 4Q2000 Annual Letter →