wdstock
Investment thesis
Western Union (NYSE:WU) has lost almost 48% of its market value over the last year, creating a substantial margin of safety and discount from its intrinsic value. I believe the company is fairly cheap based on its earning
Western Union: Robust Business With Potential 56% Margin Of Safety
Summary
- Western Union is the world's largest money transfer company and has room to deliver substantial growth in the near future.
- The company trades at a significant discount to its earning power value with a possible 56% margin of safety.
- Beside the opportunity for capital appreciation, the company also delivers a 6.8% dividend yield with a 10-year dividend growth of 8.26%.
This is Investing Milestone. This represents a journey through which I want to share how I think about Value Investing and how I approach this investment philosophy. In my analysis there aren’t preconceived truths or fixed ideas. Instead, it’s for people who want to look at investing in a rational and critical way with a particular focus on trying to reduce the impact that biases could have on each of us. There are two main pillars that constitute the foundation for this initiative: focus and curiosity. Focus is about ignoring noise and everything that could distract us from what we want to achieve. It’s what enables us to get rid off of good ideas and concentrate exclusively on the one that could lead us toward success. On this, the Scottish philosopher and historian, Thomas Carlyle wrote: “The weakest living creature, by concentrating his powers on a single object, can accomplish something. The strongest, by dispensing his over many, may fail to accomplish anything. The drop, by continually falling, bores its passage through the hardest rock. The hasty torrent rushes over it with hideous uproar, and leaves no trace behind.” The second pillar is curiosity. Curiosity is what I regard to be the engine that incentivise us to create, share and build networks where people are more inclined to welcome different and multifaceted ideas. It’s how we challenge ourselves into being more eager toward expanding our “circle of competence” and as Buffett famously said: understanding “what we don’t know and not get enticed by it”.
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