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Author: ZiggyDawg Two stars, 250 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 2360  
Subject: Re: MFI + F-Score + MSN Date: 10/16/2012 3:28 PM
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What about trying to account for Graham's valuation and margin of safety with MFI? I know MFI says to hold onto the stocks for approx 1 year, but what if you only held on until you were close to the valuation of the stock within your margin of safety?

What you wrote assumes you have the ability and skill to a. evaluate what a given company's earning will be at a given point in the future and b. that you'll be able to approximate with reasonable accuracy the fair value of that company based on those earnings and c. that the market will eventually agree with your valuation.

If you (like Graham, Buffett, Greenblatt and others) have these abilities, then you should absolutely sell when your position reached your target valuation (if not - just stick to the mechanical screen).

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