"The essence of **value investing is buying at a discount to the intrinsic value** (thus, with a margin of safety). The actual discount to be looking for depends on one’s personal risk reward preferences and the easiest way to determine the searched discount is to look at the long-term business earnings and intrinsic value. **If you aim to get a 15% return from your investments, then when the current stock price leads to a long-term average price-to-earnings ratio of 6.6, you know you have found a bargain**." ([Location 3195](https://readwise.io/to_kindle?action=open&asin=B07CNFFJ9J&location=3195)) --- **Tags** -- [[quotes]], [[owner-earnings]], [[value-investing]], [[intrinsic-value]], [[margin-of-safety]], [[long-term-thinking]] **Source** -- [[202506221723 - LN - Modern Value Investing]]