Business value is what oer when you mean the full price, and then you're saying, er price, the am the end price. So if i come up with a sticker price of a hundred dollars a share, then i'm going to buy it for half of that. That's just my way of doing it. Buffet is paying more. He's paying maybe a fairer price than that in this market. Ah, with this one stock that he's buying. For me, it's 50 % or so. This is a reminder to cut it in half, or cut it in thirds,. Or cut it in whatever. Yes, make sure you have one, exactly. And
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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