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Strategies & Market Trends : Young and Older Folk Portfolio
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To: chowder who wrote (840)3/1/2022 3:28:54 PM
From: chowder  Read Replies (1) of 21740
 
Re; Old Folk Portfolio ... New Buys

Today I started new positions in ANTM and MS.

These purchases were the result of determining a company's intrinsic value via a dividend cash flow (DCF) model.

In valuing equity, securities analysts may use fundamental analysis—as opposed to technical analysis—to estimate the intrinsic value of a company. Here the "intrinsic" characteristic considered is the expected cash flow production of the company in question. Intrinsic value is therefore defined to be the present value of all expected future net cash flows to the company; i.e. it is calculated via discounted cash flow valuation.

An alternative, though related approach, is to view intrinsic value as the value of a business' ongoing operations, as opposed to its accounting based book value, or break-up value. Warren Buffett is known for his ability to calculate the intrinsic value of a business, and then buy that business when its price is at a discount to its intrinsic value.

In determining a companies intrinsic value, there are 3 stages on can base their valuation on. Here are those stages:

1) Bear Scenario

2) Base Scenario

3) Bull Scenario

The Base Scenario is the middle price between Bull and Bear. In all 3 stages, all 3 companies are selling at a discount to its intrinsic value.

The Base Scenario has the following discounts to fair value:

MS - 46% discount.

ANTM - 30% discount.
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