You only have to get rich once.
Deep compounding positions ~ multiplys that ~ exponentially well!
That's key when you can position 5% deeply. With YSYB you can.
( IF ) YSYB's audited filings were current, the price would be $10., or IMHO = $20. !
We have a higher confidence of conviction in YSYB for many reasons, some mentioned already.
LOOK forward again into the future for YSYB.
NON-GMO YSYB ( already is & will a lot MORE ) absolutely take market share from their higher cost competitors. They have a MUCH MUCH a better model with NON-GMO by far, not to even mention CLOSE RAIL, MOTIVATION, TALENT, 1.4 billion under-developed consumers crazy hot trending on NON-GMO, BRAND RECOGNITION, & on & on; we could fill this page with more prognosticators of intrinsic value reasoning.
Obviously, YSYB would NOT be so lucrative a VALUE opportunity if they were current filers.
So therefore, only ONE way would bring the same value opportunity.
But actual RISK is much less mathematically when you crunch the real statistical data.
That's one reason Buffett put over 75% of his portfolio into GEICO in the 50's. He had intrinsic value LOGIC.
Maximizing compounding doesn't bring as much added risk as most think, when it's a LONG TERM VALUE.
Expending less money also lessens risk as well, as the Oracle has often explained.
Think of YSYB over decades forward. What is YSYB intrinsically? There's formulas for that, of course.
Value investing is frequently described as “buying dollar bills for 50 cents".
Let’s imagine what would have happened if someone indeed had managed to consistently buy stocks at 50% discount. Assume that this person finds such an opportunity every three years. Then he will be able to outperform the market by about 26% a year. (For da geeks: (100/50)^(1/3)-1= 26% )
If someone is able to beat the market by 26% a year, & the market returns about 10% a year, then he is getting a return of 36% a year. Even the greatest investor in the world, Warren Buffett, hasn’t been able to achieve that over a long period of time.
On first thought, 36% may not sound much to you. There are plenty of small investors who manage to return 36% a year, at some point in time. ( But none can achieve it consistently. )
If one started with $50,000 of initial capital 50 years ago, and managed to find a “dollar bills for 50 cents” opportunity every three years, & returns 36% a year, he should have a personal wealth of $238 billion today.
Buying dollar bills for anywhere less than a buck is easier said than done. Buffett’s Charlie Munger agreed: “[Value Investing is] not supposed to be easy. Anyone who finds it easy is stupid.”
Now let’s be a little bit more modest, aye? What if we are looking to buy dollar bills for 90 cents. Let’s say we find one such opportunity every 2 years. Then you can outperform the market by 5.4% a year (For da geeks: (100/90)^(1/2)-1=5.4%). Adding a normal market return of 10% a year, you are getting an annual return of 15.4%.
Go back to the same $50,000 starting capital example. If you start with $50,000 in 1961 & return 15.4% a year, then you should have way more than $64 million in the bank today. ( Just figuring on the fly. )
Buffett's obsession with (( compounding wealth over time)) predates his conversion to value investing.
YSYB offers that. Don't take my word for it. Watch neighborhood teenagers buy YSYB from their treefort!
The teens bought 9K shares today, ( with help from their Moms ). FORTUNE FAVORS THEE BOLD!
