- At Main Street Value Investor, we buy and hold the stocks of quality companies with history and the continued likelihood of compounding total returns from capital gains and dividends.
- Especially in this uncertain market, it is crucial to evaluate downside risk and other measurements of the stock's margin of safety.
- Warren Buffett perhaps said it best, "Price is what you pay; value is what you get."
Investing with a margin of safety is defined as the difference between the estimated intrinsic value of the stock and its current market price.
Powered by Ivy-League degrees and sophisticated software, Wall Street disseminates complex, assumptive financial models of seemingly precision earnings estimates and price targets, each market day.
But many of those projections ultimately play-out as no more intuitive than a crystal ball; otherwise, the investment elite would be as wealthy from portfolio performance as they are from fees and bonuses.
We take a more straightforward, realistic approach to measuring intrinsic value by instead focusing on five controllable quantitative areas that gauge enduring value from the compounding stocks of quality companies.
But inevitably the herd will ask, "At what specific price will the stock be trading next week, next year, and in the year 2028?" My answer: