Not exact matches
After purchasing a holding, we aim to sell it
when its price has converged with — or exceeded — our
intrinsic value estimate.
At Oakmark, we gladly buy attractively - priced stocks, even
when we don't have the foggiest idea as to
when they may trade at our
estimate of
intrinsic value.
They only buy stocks that are reasonably priced relative to the «
intrinsic»
value they
estimate, and sell stocks
when they become overpriced.
The stock does look cheap
when we consider its quality and growth potential, but what might a reasonable
estimate of its
intrinsic value be?
When the IVP ratio is 1.0,
estimated intrinsic value equals market price.
I'd also be slow to change my long - term
intrinsic value estimates per boe in - the - ground (for example, $ 10 per proved boe), even though oil has fallen to $ 50... note I didn't increase my boe valuations
when oil rallied from $ 80 to $ 120 + either.
Further, I will be reassessing each and every other position I have over the next couple of months to see whether we are near my
estimate of
intrinsic value (revised from
when I first made the investment) or whether management simply is incapable of realizing what I thought was
intrinsic value (MFC???).
7 Generally, margin of safety is analyzed quantitatively — in terms of a discount to
intrinsic value, remembering that
value investors only buy
when a stock's market price is well below their
estimate of its
intrinsic value, under the assumption that they understand how the stock price will gradually recover until price approaches
intrinsic value.