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Page 20
Mr. Market
“Every day he tells you what he thinks
your interest is worth and furthermore
offers either to buy you out or to sell
you an additional interests on that
basis.”
20


Page 21
The Intelligent Investor: Shareholder and Management Policy
The need to read proxy statements
Is the Management reasonably efficient?
21


Page 22
The Intelligent Investor: “Margin of Safety”
Central Theme tenant on becoming an intelligent investor
“To be an Intelligent Investor, you must take responsibility for
ensuring that you never lose most or all of your money.”
Margin of Safety
The price paid (for yet to be realized intrinsic value) for a security
versus the market price.
“Is the difference between percentage rate of the earnings on a
stock at the price you paid for it and the rate of interest on
bonds, and that margin of safety is the difference which would
absorb unsatisfactory developments.”
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Page 23
The Intelligent Investor: “Margin of Safety”
Risks and Margin of Safety
The risk of paying too high a price for good-quality stock is not
the chief hazard.
Growth and Margin of Safety
Growth-stock buyers rely on an expected earning power that is
greater than average shown in the past.
Undervalued Securities and Margin of Safety
More evident when applied to undervalued securities.
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Page 24
The Intelligent Investor: Concluding Remarks
“Investment is most intelligent when it is most
businesslike.”
Business Principles
Know what your doing - know your business.
Do not let anyone else run your business, unless.
Do not enter upon an operation unless reliable calculation shows that it has a fair
chance to yield a reasonable profit.
Have the courage of your knowledge and experience.
Have the courage of your knowledge and experience.
The risk is not in our stocks, but in ourselves.
“To achieve
satisfactory
investment results is easier than most people realize; to achieve
superior
results
is harder than it looks.”
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Page 25
Assignments
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Page 26
Assignments
26
Assignment
Due date
Weekly 4 Analysis
02/08/2019 @ 11:59 PM
BMC
02/08/2019 @ 11:59 PM
Sector Presentation
02/13/2019 @ 12:00 PM


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