We attempt to independently and dispassionately assess the investment merits of a business and conservatively estimate its intrinsic value, which we then compare to the price at which it is available in the market.
We build detailed integrated cash flow models and estimate intrinsic value by incorporating highly conservative assumptions about the future of the business and the economy. We become interested in potentially initiating a position if a security is priced to offer an adequate margin of safety to protect us against the risk of permanent loss.
