GAFM GLOBAL ACADEMY OF FINANCE AND MANAGEMENT  ®

19.  Shareholders, Stakeholders, and Management: Dividend Policy

There are 5 stakeholders in any company: 3 are: Owners/Shareholders, Management, and Employees. All have rights to negotiate with the company or question the company or demand answers. The other stakeholders are customers and community. All are important in analyzing a company. 

20.  Margin of Safety as the Central Concept of Investment

Margin of safety in a security is the amount by which the issuer’s intrinsic value exceeds its traded or valued stock price. Using the concept of: margin of safety, investors should purchase a stock when it is valued higher than its listed price on the secondary market. This is the central thesis of value investing philosophy which teaches the preservation of capital as its primary rule of investing. 

REFERENCE - You Tube Book Review 

http://www.minnesota.feb.gov/redirect.php?link=www.youtube.com/watch?v=MZuTmhFdYy8  

QUOTES

1.  “By developing your discipline and courage, you can refuse to let other people’s mood swings govern your financial destiny. In the end, how your investments behave is much less important than how you behave.” (pg. xiii)

2.  "Investing isn’t about beating others at their game. It's about controlling yourself at your own game.” (pg. 219)