Seth Klarman notes
Many value investors have clamored for a copy of Seth Klarman's "Margin of Safety. "Controlled Greed" features a post from Motley Fool that provides some useful and thoughtful excerpts from this wonderful but sadly out of print book.
Motley Fool Link
Investors in a stock expect to profit in at least one of three possible ways:
a) From free cash flow generated by the underlying business which will eventually be reflected in a higher share price ordistributed as dividends.
b) From an increase in the multiple that investors are willing to pay for the underlying business as reflected in a higher share price.
c) Or by narrowing of the gap between share price and underlying business value.
Great perspective for the value faithful as we gather here in Omaha for Woodstock for Capitalists.