Investing in fundamentally sound stocks when they are available at a discount from its MRP (fair price) with the intention of holding them for a long period describes MoneyWorks4me’s core investment strategy. Once we have identified an investment worthy company, we take pains to arrive at its MRP-a price at which we can earn the required rate of return that the stock. Of-course we recommend buying it at a discount to doubly ensure we are protected from the possible downsides.
We have developed tools that use the stock’s MRP and other important characteristics that inform us about when to buy, how much as a percentage of the portfolio and when to sell. When we apply this with discipline it gives very good returns without giving us sleepless nights.