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Strategies & Market Trends : Value Investing

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To: EddyRiquelme who wrote (48432)	6/24/2012 12:01:20 PM
From: Paul Senior	Read Replies (1) of 78700

I estimate or guesstimate or presume margin of safety in a number a ways depending on what the company's business is. I never try to calculate something called "intrinsic value". It's not necessary to figure out what a company's intrinsic value might be in order to have a feel for what margin of safety might be. "...intrinsic value is not something that comes up at all in the intelligent investor (it isnt meant to be too complicated) but intrinsic value does come up in Security Analysis." If you were to follow Dr. Graham's later work then and be an "intelligent investor", you would not have to be concerned with "intrinsic". I suggest you follow Dr. Graham's "Intelligent Investor". "Retained earnings is what buffett means when he talks about the cash that can be taken out of the business correct?". I don't know. I'll say, maybe that's an approximation. Possibly too simplistic. "Buffett states that focus on the balance sheet is more effective when working with smaller pools of money what does he mean by this" More effective than what? More effective than with working with larger pools? More effective than focusing on the income statement? Not clear to me.

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