Spyglass Portfolio -- Megatrends
D
Margin of Safety
A
Phase 3
Phase 2
Phase 1
How Spyglass views volatility - in the absence of a change in fundamentals
Discounted PV
Stock price above the PV line:
Represents increased risk
Stock Price
www
Discount to PV
3
0-15%
Phase
2
15-30%
1
30-50%+
Stock price below the PV line:
Represents increased
opportunity
Time
"Margin of safety" is a principle of investing in which an investor only purchases securities when their market price is significantly below their intrinsic value. The margin of safety principle was
popularized by Benjamin Graham and his followers, most notably Warren Buffett. Investors utilize both qualitative and quantitative factors, including firm management, governance, industry
performance, assets and earnings, to determine a security's intrinsic value. The market price is then used as the point of comparison to calculate the margin of safety.View entire presentation