What’s Your Margin of Safety?
I have a poll running at Value Investing News regarding margin of safety. I’ve been struggling with my own thoughts on margin of safety, so I thought I would ask others what they consider to be an adequate margin of safety to intrinsic value before buying a stock. Here’s what I’m asking:
What is your minimum required margin of safety for buying stocks?
Please visit the Value Investing News poll and leave a response. After you vote, you can see the current responses to the poll. After this week, I’ll post the final results here as well.
I think I will be running a poll every week on Value Investing News. Do you have any questions you would like to have other value investors answer?
which would you rather have or which is a better use of FCF, buybacks or dividends.
If you forget taxes it doesn’t matter if a company buys back stock or pays dividends. That said, a company doesn’t want to risk lowering its dividend so it might prefer to just buy back stock even if the stock isn’t trading at a discount. In my opinion I’d rather have management buy back stock when its cheap and pay me dividends when its not. I’m sure someone else could provide a better answer.
sorry, I meant for that to be a question suggestion for the VIN poll. I think it would be a good question because it is a little controversial. I’ve heard good arguments for both. thats an interesting concept Nick. i’ve never heard that before. the best arguments I’ve read were somewhere on the motley fool site. I remember Buffett is for buybacks.