The Graham Approach: Putting a price on the future (Part 2)

The single-most important decision in evaluating a business is pricing power

Over the last 14 trading days, the S&P 500 has dropped more than 10%, entering correction territory. Individual stocks have experienced even steeper declines, with some plummeting by 20% to 40%, reigniting recession fears tied to new tariffs similar to those implemented during Trump's first term. However, it's important to remember that you are neither right nor wrong because the crowd disagrees with you. you are right because your data and reasoning are right.

Historically, the market has always trended upward in the long term, and quality companies continue to grow in value despite frequent market fluctuations. Peter Lynch once said that your investment success or failure will depend on your ability to ignore the world's worries long enough to allow your investments to succeed. As investors, we should view market downturns as opportunities to acquire quality stocks at significant discounts. In our last article, we using Graham approach identified YOCB as a promising investment. This article will delve deeper into assessing its intrinsic value to determine if the current market price, significantly below this value, might represent a potential 10x investment. Let's explore this opportunity now.