This is the valuation section, and it's the margin of safety valuation. I just wanteror everybody to know what to do here. If you're a following along in our book invested, it's in chapter eight. Ok right. Very good. My gosh. A iv, going try to go through this quickly. You're ready? I am confident i can pen point a long term growth rate of earnings in cash that is bullish, but not zy. All right, try to write aster. Ready for the next point?
In Rule #1 investing, we call “buying on sale” purchasing stocks with a Margin of Safety. All you have to do to get a big MOS is know the value of the business you are buying—as a business—and then wait to buy it until the market drops much lower than the value. Today, Phil and Danielle dive deeper into Margin of Safety valuations, and explain why understanding how to value a company is critical to stockpiling.
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