Margin of Security + growth stocks + franchise

Securities analysis, smart investors, how to choose growth stocks, Buffett
Greenham laid the margin of safety theory, Fisher founded the growth stock theory, Buffett solved how to efficiently and accurately choose high-quality stocks.
I personally think that greenum's margin of security, Fisher's growth stocks, and Buffett's franchise are equally important. They are the foundation of Buffett's theory and are indispensable. The margin of security solves the survival problem, while the other two are the most critical factors for long-term stability and high return.
The importance of the margin of security varies slightly for different enterprises. For high-quality enterprises with a high degree of certainty, the margin of security can be placed below the limit (which is still very important. The latter is only relative ), for other enterprises, it is always the highest priority. "Buying high-quality enterprises at reasonable prices is much better than buying mediocre enterprises at low prices ".
"Greenham laid the margin of safety theory, Fisher founded the growth stock theory, Buffett solved how to efficiently and accurately choose high-quality stocks ". Buffett liked the beautiful castle in moat, and efficiently and accurately pointed out what kind of Castle is beautiful and what kind of moat is solid, that is to say, it points out what is the enterprise that makes money for shareholders and how the business that makes money can be carried out securely without interference. Fei Xue uses competitive advantages as the foundation for security, and enterprise growth means making money. Graham believes that only discount can ensure security, and the return of value is the process of making money.
"Making money safely" seems to be what they have in common! The experience of the three predecessors is a hundred-year history of securities. They have developed a complete set of safe and profitable methods from different perspectives. From the method perspective, Buffett is indeed more like Fei Xue, but from the perspective of the method, "making money safely" Buffett learned from Master Graham.
Enterprises must make money securely, and investors must also make money securely. (Value) the investment theory should be developed and published under the principle of making money by security. With the "safe and profitable" principle, so it is easy to answer questions (although the answer is personalized) that may cause headaches for value investors, such as waiting for a discount, overestimating selling, not selling, or holding shares for a long time ). These problems have been reduced from the principle level to the specific method level.
Outstanding growth stocks (investment targets) and the margin of safety are both important and time-ordered: the margin of safety is not necessarily produced by falling prices, but also by increasing value, so pay attention to the fourth quarter, because the outstanding growth stocks due to the decline in the next year's performance discount rate, the value has increased, and the stock price remains at the valuation of the year, there is a margin of safety, start. Or wait, wait for the market to fall in a panic or make a mistake: BA Lao waited for decades to buy at a price of 14.5 times PE or 5 times the book asset value (the earnings per share for that year was 0.36 US dollars, an average price of $5.22 per share, a net worth of $1.07 per share), and waiting for the company to buy after a scandal.
The essence of the margin of safety principle: a certain margin of safety is required. The root cause is that the factors that affect the stock market price and the company's operation are very complex. Relatively speaking, people have limited predictive capabilities and are prone to mistakes. With a large margin of security, even if we make some mistakes in the company's value evaluation, the market price is still below the value for a long period of time, and the company's development has suffered temporary setbacks, will not impede the security of our investment capital and guarantee the minimum satisfactory rate of return. In terms of operation, the proportional control of positions in stages can also be regarded as the auxiliary means of using the margin of safety.
When both are available, I will talk about the relationship between the two. I personally think that both are equally important. Investment and system are also important, the short-board effect is equally important to determine the investment target and the investment price (which can also be understood as the stock selection time). If Coca-Cola is bought at the peak, it still has negative returns, the margin of security includes not only security, but also excess profits and investment opportunities. The only difference between the two is that the Operation should first determine the investment target, then wait for the arrival of the margin of security.