43 Dividend Champions On Sale: A Rare Opportunity - Seeking Alpha: We believe that based on earnings, 2012 is starting out with the stock market undervalued. We believe in the long-term ownership of great businesses purchased at sound and attractive valuations. Consequently, we view the stock market as merely the store that we shop at in order to buy the businesses we want to own.
Furthermore, we do not rely on the market to set the price at which we are willing to buy or sell. Instead, we prefer to calculate the intrinsic value of the business based on the company’s earnings power. If the market price is at or below that level of valuation we will be a buyer, if not, we either look elsewhere or patiently wait for the True Worth™ valuation to manifest.
Furthermore, we do not rely on the market to set the price at which we are willing to buy or sell. Instead, we prefer to calculate the intrinsic value of the business based on the company’s earnings power. If the market price is at or below that level of valuation we will be a buyer, if not, we either look elsewhere or patiently wait for the True Worth™ valuation to manifest.
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