One mistake value investors can make is to focus too literally on the absolute difference between an estimate of intrinsic value and the stock price as the valuation cushion. If the range of potential outcomes is very wide, you may have much less of a cushion than you think. One big reason we focus on [...]

The foundation of our process is the ability to arrive at a reasonable estimate of intrinsic value, which is often undermined in emerging markets by a variety of reporting, governance, legal and regulatory obstacles. In South Korea, for example, consolidated financial statements aren’t always available. In Russia, the government hasn’t kicked the habit of controlling [...]