The higher the MOS (Margin of Safety) the higher potential returns you can make. MOS is the Share Price discount off the Sticker Price.
Within Tykr, we like to see an MOS of 50% or more.
If the Sticker Price is $200 and the Share Price is $100, that means the MOS is 50%. ($100 is 50% off $200).
If the Sticker Price is $400 and the Share Price is $100, that means the MOS is 75%. ($100 is 75% off $400).
Think of it like buying groceries. When you go shopping for food, do you want to pay full price or do you want to find a deal? Personally, I like to find deals especially on produce. I’m really into health and fitness so eating healthy is important. If I can find deals on fruits and vegetables, that’s a win! Overall, I never like to pay full price on groceries and I never like to pay full price on stocks!
If you would like to learn how we calculate the MOS, please visit the Calculations section within our support site. The math behind Tykr is open source. No “hidden secrets”.