Tests for Safety

1. Debt-to-Equity is less than 1
2. Current Assets are twice liabilities
3. Total Debt is less than twice net current assets
4. Annual earnings growth is at least 7 percent over the last ten years
5. No more than two year-to-year earnings declines of more than 5 percent during the last ten years.

Four step test for value

1. No losses within the past 5 years
2. Total debt is less than 100 percent of tangible equity
3. Share price is less than book value per share
4. Earnings yield is at least twice the yield on long term 20 year bonds

Share Price value
1. If a stock's price was less than two-thirds of net-net current assets per share. Investors buy excess cash for 67 cents on the dollar and get a full claim on the company's permanent assets for free. The company must be generating profits.

To calculate intrinsic value investors rigorously examine qualities such as financial strength and earnings strength in context of the companies past results., its current operation, and its future prospects

安全性试验
1.债转股比例小于1
2.流动资产是负债的两倍
三债务总额低于流动资产净值二倍者
4.过去十年的年收益增长率至少为7%
五、最近十年内，公司盈利同比下降幅度不超过百分之五的，不得超过二年。
价值四步检验
1.近5年无亏损
2.债务总额低于有形权益的100%
三股价低于每股帐面价值者
4.收益率至少为20年期长期债券收益率的两倍
股价价值
一股价低于每股流动资产净值三分之二者。投资者以每美元67美分的价格购买多余的现金，并免费获得对公司永久资产的全额索赔。公司一定在创造利润。
为了计算内在价值，投资者会根据公司过去的业绩、目前的经营状况和未来的前景，严格审查财务实力和盈利能力等品质