Value Investing: buy businesses below intrinsic value
Value investing is a disciplined approach: estimate what a business is worth, then buy only when the market offers a discount. The discount is your margin of safety.
1) Intrinsic value
Intrinsic value is an estimate of what the business is worth based on cash generation and risk, not short-term price movements.
2) Margin of safety
A margin of safety is the buffer between value and price. Bigger buffers can reduce risk if your estimate is wrong.
3) Use a screener to find candidates
Screen for quality + value: positive margin of safety, reasonable valuation, strong profitability, and manageable debt.
Practice on real companies
Browse stocks and compare price vs intrinsic value.
Intrinsic Investor is for education and research only. Not financial advice.