Buybacks should only be done when it is
at a discount to the intrinsic value of the firm.
Not exact matches
Focus on
Value: By targeting high - yielding securities
at significant
discounts to their
intrinsic values, we attempt
to generate capital appreciation on top
of high current income.
«Repurchases - is sensible [allocation
of capital] for a company when its shares sell
at a meaningful
discount to conservatively calculated
intrinsic value.
I'm not sure there is much
of a place for a strict Graham
value stock, which I define as a stock trading
at the sharpest
discount to fair
value X with no heed
to whether the
intrinsic value of X is expected
to grow.
We used the proceeds
to purchase names trading
at a larger
discount to our estimate
of intrinsic value.
At the current price of $ 5.56, we believe the market has overly discounted the effects of the lower commodity price environment, giving us an opportunity to buy Glencore at a compelling discount to our estimate of intrinsic valu
At the current price
of $ 5.56, we believe the market has overly
discounted the effects
of the lower commodity price environment, giving us an opportunity
to buy Glencore
at a compelling discount to our estimate of intrinsic valu
at a compelling
discount to our estimate
of intrinsic value.
- Applying a 3.5 x revenue multiple
to WU.com, which is a
discount to Xoom's 4.8 x revenue takeover multiple, and 15x EV / FCF
to WU's remaining businesses (retail C2C, C2B, and B2B), which is a substantial
discount to MoneyGram's 21x EV / FCF takeover valuation, they derive an
intrinsic value estimate
of ~ $ 33 per share for WU
at the end
of 2020, offering ~ 72 % upside, or a 3.5 - year IRR
of ~ 20 % including the dividend (3.7 % current yield).
GE is trading
at a large
discount to our estimate
of intrinsic value, and we are glad
to welcome it back
to the portfolio.
Although we have reduced our estimate
of SKY's
intrinsic value, we continue
to remain shareholders, as we believe its standalone business is still trading
at a large
discount to the company's true worth.
If we buy
at a
discount to what we believe the business is worth, we will benefit twofold: by the growth
of the
intrinsic value and the market correction for the
discount.
Even with the strong performance during the quarter, both Intel and FedEx still sell
at a
discount to our estimate
of their
intrinsic values.
Selling
at a significant
discount to our estimate
of intrinsic value and
at only a modest premium
to tangible book
value, we think News Corp offers a compelling risk / reward profile.
As always, our focus remains on seeking
to exploit the market's short - term mindset and
to buy businesses trading
at a substantial
discount to our assessment
of their long - term
intrinsic value.
We view the recent slowdown in Macau as a temporary phenomenon that has given us the opportunity
to own one
of the best - positioned global gaming companies
at a significant
discount to our estimate
of intrinsic value.
We look for stocks trading
at a substantial
discount to our estimate
of intrinsic value.
I'm not sure there is much
of a place for a strict Graham
value stock, which I define as a stock trading
at the sharpest
discount to fair
value X with no heed
to whether the
intrinsic value of X is expected
to grow.
We then require the stocks we add
to our portfolio
to be trading
at a substantial
discount to our estimate
of that
intrinsic value.
Value investing means I am seeking to purchase stocks that are trading at a meaningful discount to my perception of their intrinsic value — finding the market price is easy, but estimating intrinsic value is
Value investing means I am seeking
to purchase stocks that are trading
at a meaningful
discount to my perception
of their
intrinsic value — finding the market price is easy, but estimating intrinsic value is
value — finding the market price is easy, but estimating
intrinsic value is
value is not.
It is a story
of a fund manager who seeks
to buy companies that are trading
at a
discount to their
intrinsic value and that have excellent long - term prospects; in other... Continue reading →
If they rate an issuer's credit as higher than the external credit ratings, they are often able
to pick up the security
at a
discount to their perception
of it's
intrinsic value.
In the examples cited (AZO, NVR, etc...), the cannibalization created
value because shares were bought in
at discounts to intrinsic value over long periods
of time.
When you invest in the Ensemble Fund, you are investing in a collection
of strong companies that we believe have competitively advantaged business models, talented management teams, understandable businesses and whose stock prices trade
at a
discount to their
intrinsic value.
The managers calculate the
intrinsic value of a lot
of small companies, though very few are currently selling
at an acceptable
discount to those
values.
Pictet Asset Management believes in disciplined active management through bottom - up stock selection and seeks
to identify stocks trading
at a
discount to its calculation
of intrinsic value.
The Capstone strategy seeks
to generate absolute returns over the long term in the attractive asset class
of smaller under - researched companies by building portfolios that have lower than market levels
of debt, higher than market levels
of profitability, and are trading
at a
discount to their
intrinsic value.
This
Intrinsic Value Estimator uses the estimated Free Cash Flow in a 2 - stage
Discounted Cash Flow Model (years 10 and 15),
to arrive
at an estimate
of Intrinsic Value.
Less visible, but equally impoverishing, are sins
of omission: When undervalued, overcapitalized companies fail
to grab a rare opportunity
to buy back stock
at a wide
discount from
intrinsic value.
He says this can be OK, provided the company has (1) modest or no net debt, (2) persistent and rising levels
of free cash flow, and (3) stock buybacks
at a
discount to intrinsic value.
The whole premise
of value investing lies in purchasing investments
at a substantial
discount to their
intrinsic value.
It is a story
of a fund manager who seeks
to buy companies that are trading
at a
discount to their
intrinsic value and that have excellent long - term prospects; in other words, it is another story
of an immensely successful
value investor who launched his fund prior
to the year 2000.
As always, our focus remains on seeking
to exploit the market's short - term mindset and
to buy businesses trading
at a substantial
discount to our assessment
of their long - term
intrinsic value.
So the idea is, buy stocks trading
at a big
discount to their
intrinsic value because
of a short - term problem.
If you buy a quality business
at a big
discount to intrinsic value, you get the potential
of a double dip — the gap
to intrinsic value hopefully closes and then you can also benefit from the company compounding per - share
value over a number
of years.
Ben Graham's system involves four bedrock principles, two
of which Charlie Munger introduces here: 1) a share
of stock is a proportional ownership
of a business and 2) buy
at a significant
discount to intrinsic value to create a margin
of safety.
They excel
at measuring the
intrinsic values of companies and waiting patiently until the stocks that they fancy sell
at large
discounts to those
intrinsic values.
For example, Buffett's standard on buy backs, whether advocated by an activist or initiated by company management, is as follows: «First, a company [must have] ample funds
to take care
of the operational and liquidity needs» and «Second, its stock [must be] selling
at a material
discount to the company's
intrinsic business
value, conservatively calculated.»
Buying
at a significant
discount to intrinsic value (e.g., 25 %) creates a margin
of safety.
At TAM, its concentration, whether GC or ITC, is exclusively on outside minority passive investing with deep knowledge of companies and the securities they issue, and also price consciousness in trying to buy at big discounts from intrinsic value for companies with good outlook
At TAM, its concentration, whether GC or ITC, is exclusively on outside minority passive investing with deep knowledge
of companies and the securities they issue, and also price consciousness in trying
to buy
at big discounts from intrinsic value for companies with good outlook
at big
discounts from
intrinsic value for companies with good outlooks.
If the investment is then made
at a substantial
discount to intrinsic value, then chances
of permanent capital loss are minimal.
We then wait for an opportunity
to buy shares in them
at a
discount to our estimate
of intrinsic value.
Generally, the firm seeks investment in companies whose securities it believes are undervalued by the market and can be acquired
at a
discount to its estimate
of intrinsic value.
Investing with Montaka provides domestic and international clients the opportunity
to benefit from both the
value created by extraordinary businesses purchased
at discounts to intrinsic value, as well as the decline in
value of deteriorating businesses and industries.
Recognizing our assessment
of intrinsic value could be incorrect or may decline, we buy stocks with a «margin
of safety» or
at a «
discount to intrinsic value»
to protect ourselves.
A Margin
of Safety means that a company is «cheap» relative
to its
intrinsic value; it can be bought
at a
discount.
But
at times, like Munger said, the market allows you
to buy some
of the largest, most well known companies
at discounts to their
intrinsic value.
Thus if you purchase with a
discount to your
intrinsic value (say a margin
of safety
of 30, 40 or 50 %) it doesn't matter if the share price goes down; in fact this is only an opportunity
to purchase MORE
of the company
at an even GREATER
discount.
Then there is Steel Partners (SPLP), a holding company trading
at a
discount to NAV, where many
of the listed companies it holds positions in are, themselves, trading
at a
discount to intrinsic value; so two levels
of discounts.
If its worth so much more than the market price might he not just step up and purchase all the remaining shares
at even a 10 %
discount to his estimate
of intrinsic value?
I wrote about this in detail here — with far too many companies, there's no concept
of / attempt
at determining a fair
intrinsic value, and then opportunistically buying
at a
discount to this
value.
The objective
of value investing is
to purchase assets that trade
at a
discount to their
intrinsic value.