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InvestED: The Rule #1 Investing Podcast

54- Margin of Safety Valuation

InvestED: The Rule #1 Investing Podcast

Phil Town & Danielle Town

Business, Investing

4.61.6K Ratings

🗓️ 19 April 2016

⏱️ 47 minutes

🧾️ Download transcript

Summary

This week we talk about the four numbers you need in order to calculate the intrinsic value of a business. Once we have this value, we’ll apply it to our Lemonade Stand example and be one step closer to determining the price you should pay for a business. For show notes and more information visit www.investedpodcast.com Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0

Well, hi everybody, this is Phil Town.

0:05.0

We're here for the Invested Podcast, where are we talking about

0:11.0

how to invest and how to get yourself wrapped up in it and be invested in the future

0:16.5

financial success of your life.

0:19.6

Invested in the stock market and in yourself.

0:24.0

And you know what?

0:25.0

We're actually talking about more than stock market investing.

0:28.0

We're talking about investing as a, as a, as a, a just a quality of your life that's something you do and know how to do whether

0:38.8

it's stock market real estate private companies buy a franchise, you know, so that you'll understand always in your life,

0:47.0

whether you're actually investing or whether you're speculating on something.

0:51.0

And last time I was trying to convince Danielle that if you don't know if you don't

0:57.2

understand what you're putting your money into and it doesn't have a durable

1:02.1

competitive advantage out there and it isn't operated by people

1:05.5

with integrity who are talented and you're not buying, you don't know the value and you don't know

1:10.2

if you're buying it on sale.

1:11.7

You're not investing, you're speculating.

1:13.4

I mean, no, I agree with that.

1:15.3

You weren't trying to convince me of, no, just go pick something

1:19.0

and know nothing about it.

1:20.2

Of course, that's speculating.

1:21.9

Thank you for mischaracterizing my position.

1:26.4

Always frame your argument so you win.

...

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