If it is
selling at a discount to intrinsic value, this is the «margin of safety» that Ben Graham talks about.
Not exact matches
«Repurchases - is sensible [allocation of capital] for a company when its shares
sell at a meaningful
discount to conservatively calculated
intrinsic value.
Although Honda is still trading
at a
discount to its
intrinsic value, we have lost faith in management's ability
to create long - term shareholder
value and
sold our position.
We believe the recent
sell - off in the energy sector has presented an opportunity
to buy solid companies with strong balance sheets
at a significant
discount to their
intrinsic value.
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.
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.
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.»
The
selling pressure created an opportunity
to buy a high quality company, soon
to be two,
at a large
discount to its
intrinsic value with upcoming catalysts that will help unlock its hidden
value.