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Seth Klarman on Beta - Inviting Contrarian Views
In his legendary book 'Margin of Safety', Seth Klarman deplores the use of beta as a measure of risk. He argues that beta is simply a measure of historical volatility of a stock and doesn't say anything about 'risk' in its literal sense. For instance, a low priced security may have a historically...
Margin of Safety in LBO Model
Is it possible to calculate a Margin of Safety for LBO purposes, to assess whether there is a sufficient amount of margin of safety to invest in the company? If so, how would I calculate it? I know it would be expected growth/sales minus break even, but would this mean breakeven with regards to IRR...
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