We are Value Investors, which we define as investing in undervalued companies which present a considerable margin of safety. In order to do this successfully over time, one must commit themselves to conducting thorough research and analysis of each investment. This takes time and an immense amount of work, and in spite of what people may think, it is something we truly enjoy (it’s true).
Maredin Wealth Advisor’s investment philosophy is principally derived from the work of the late Benjamin Graham, professor at Columbia Business School, and Warren Buffett, CEO of Berkshire Hathaway. These two gentlemen focused on a number of important factors but none more important than determining the “Intrinsic Value” (our estimate of an investments value) of a company. Though this value can be derived in many ways, we focus on the following five: Acquisition Value, Liquidation or Collateral Value of its Assets, Discounted Future Cash Flows, Management Effectiveness, and General Business Environment.
Establishing “Intrinsic Value”, and the “Margin of Safety Principle" are the two most fundamental elements of Maredin's research and investment philosophy. Every company we invest in is analyzed, where we estimate its "Intrinsic Value." The “Intrinsic Value” is then compared to its current market value to determine the attractiveness of the investment. In order for Maredin to invest, an investment must be made at a significant discount to the "Intrinsic Value" [normally 40-60% below it], which simply means that we are buying it with what we believe to be a built in "margin of safety" (as Benjamin Graham called it).
We at Maredin are committed to our clients and their investments. That is why we research and select only those common stocks and debt instruments selling at a discount to their estimated intrinsic value, within our “Margin of Safety.” We work to ensure that our clients are always getting more than they pay for. Like Benjamin Graham, Warren Buffett “…never forgets that he is handling other people’s money and this reinforces his normal strong aversion to loss…money is real to him and stocks are real, and, from this flows an attraction to the ‘Margin of Safety Principle”, from Supermoney, 1972. (The Intelligent Investor, 1973, p.542). We couldn’t agree more!!