Friday, November 19, 2010

How Shareholder Value is Really Created

By Greg Canavan for The Daily Reckoning

In today’s volatile investment world, it is the key to preserving and growing your wealth. In bull markets you can get away with a lack of discipline on the valuation front. In a post credit crisis world characterised by monetary disorder, you don’t have that luxury. The concept of the margin of safety simply refers to the difference between a company’s share price and its intrinsic value. Valuations are subjective and are only as good as the assumptions you make. Continued......


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