Formula For Premium

‘Margin of safety’ is the difference between a stock price and its intrinsic worth, or value.

So if a stock is trading at  $70 in the market, and you calculate the company’s intrinsic value as $100, you have a margin of safety of  $30 (100 minus 70). In other terms, the sto...

To value investors, an asset isn’t an ephemeral concept you invest in because you think it’s attractive. It’s a tangible object that should have an intrinsic value 

capable of being ascertained, and if it can be bought below its 

value investing and growth investing. In a nutshell, value investors aim to come up with a security’s current intrinsic value and buy when the price is lower, and growth investors try to find securities whose value will increase rapidly in the future.