Benefits of Investing in Turnarounds Far-sighted and Focused on Future Opportunities

Identify Multiple Levers in an Investment to Achieve Success

I like to see multiple levers in an investment that will allow me to win. I think your margin of safety is directly correlated to the number of levers. It could be the ability to double sales over four or five years. It could be margin leverage. It could be leverage from undervalued assets that management can use to unlock value. It could be a huge cash position that might be used to buy back stock, pay a dividend or invest in growth.