MI222: How to Invest Like Warren Buffett w/ Robert Hagstrom
The Intrinsic Value Podcast - The Investor’s Podcast Network
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Modern Portfolio Theory - Is That the Discount Rate?
The discount rate is one of the single most important things that can change your entire intrinsic model. Today, we're getting discounts at eight, almost a 30 forty 50 % higher than what they were a year or two ago. As those inter rates have moved up, you can see stock prices have moved down. We continue to discount at ten %. And some people say it's just too high based upon the intertrade market think ot well, maybe so. But what i have done is built in a margin of safety, an additional buffer,. If i'm wrong on intrest rates and they keep going up, I don't have to thread the needle so tightly that we do.
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